Doing Business in Indonesia VS Canada – A Comparison
Entrepreneurs and investors often face a tough decision when choosing where to establish or expand their businesses. Both Indonesia and Canada offer unique opportunities, each with its own set of advantages and challenges. While Indonesia is known for its competitive business landscape, high quality of life, and lower costs for small business setups, Canada attracts investors with its political stability, developed economy, and robust infrastructure. This article explores the key factors to help you make an informed decision between these two promising destinations.
Key Comparison Points
Business Environment
- Indonesia: Indonesia offers a stable political environment with ongoing government initiatives to attract foreign direct investment (FDI) through reforms and incentives.
- Canada: Canada is renowned for its political stability, transparent legal framework, and strong government support for businesses, particularly in innovation-driven industries.
Taxation
- Indonesia: The corporate tax rate in Indonesia is 22%, with various tax incentives available for businesses in priority sectors such as manufacturing and renewable energy.
- Canada: Canada offers a lower average corporate tax rate of around 15% federally, with additional provincial taxes, and provides significant tax credits for research and development (R&D) activities.
Ease of Company Incorporation
- Indonesia: Incorporating a company in Indonesia involves several steps, but the government has streamlined the process through its Online Single Submission (OSS) system, making it easier for foreign investors.
- Canada: Canada provides a straightforward incorporation process with strong digital infrastructure, allowing businesses to register online efficiently.
Cost of Living and Business Operations
- Indonesia: Indonesia is highly cost-effective, with affordable office spaces, lower labor costs, and a relatively low cost of living, making it ideal for small and medium-sized enterprises (SMEs).
- Canada: Canada has higher operational costs, including office rentals and wages, but offers a high standard of living and access to skilled labor.
Access to Markets
- Indonesia: Strategically located in Southeast Asia, Indonesia provides access to a growing consumer base and benefits from regional trade agreements such as the ASEAN Free Trade Area (AFTA).
- Canada: Canada’s global connectivity is enhanced by its membership in trade agreements like the USMCA and CPTPP, providing businesses access to major markets in North America and Asia-Pacific.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor |
Indonesia |
Canada |
Business Environment |
Stable political environment with FDI-focused reforms. |
Highly stable with transparent legal frameworks and strong government support. |
Corporate Tax Rate |
22% |
15% federally, plus provincial taxes. |
Capital Gains Tax |
Taxed as ordinary income. |
50% of capital gains are taxable. |
Ease of Incorporation |
Streamlined through the Online Single Submission (OSS) system. |
Efficient and supported by strong digital infrastructure. |
Business Costs |
Lower costs for operations, office spaces, and wages. |
Higher operational costs but access to skilled labor. |
Market Access |
Strategic location with access to ASEAN markets. |
Global connectivity through USMCA and CPTPP trade agreements. |

Benefits of Choosing 3E Accounting
Whether you’re looking to register a company in Indonesia or start a business in Indonesia, 3E Accounting offers unparalleled expertise and support. From seamless incorporation to comprehensive business solutions, our team ensures a hassle-free experience for entrepreneurs and investors.
Explore our Indonesia company incorporation services package to understand how we can assist you. For more guidance, check out our guide on registering a company in Indonesia. Ready to take the next step? 3E Accounting is here to help. Contact us today to get started.
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Frequently Asked Questions
To understand the full process of starting a business in Indonesia, it’s important to review the requirements for licenses, company structures, and tax registration. 3E Accounting provides a complete step-by-step guide.
Indonesia’s process has improved with the Online Single Submission (OSS) system, while Canada also allows for easy online registration. If you want help with company registration in Indonesia, 3E Accounting can assist.
Company incorporation in Indonesia is more cost-effective than in Canada, especially for small businesses. Office space, labor, and operational costs are significantly lower.
3E Accounting is a trusted firm offering expert support for company setup, tax services, and legal compliance, ensuring a smooth start in the Indonesian market.
You can contact 3E Accounting directly to schedule a consultation or inquire about a tailored business setup package.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.