Common Mistakes When Starting Establishment Companies – Establishing your own company/business is very beautiful, challenging and also difficult. Many start-ups have succeeded as well as failed.

Recognizing some of the common mistakes new company owners often make you should be able to play very smart and gain an edge over your competing peers in the business.

As you progress in establishing a company, you are likely to make a lot of mistakes. But, if you are ready to learn from your mistakes and want to avoid failure, then it is no big deal for you to grow in the business game.

If you’re looking to start a company and business, here’s a list of common mistakes you need to be aware of:

Doing Company Registration without Consulting Assistance

company registration without consulting

In Indonesian law, entrepreneurs who want to establish their company are called Limited Liability Companies (PT) or other legal entities in Indonesia. As entrepreneurs, they must know that they have an understanding of the regulations that apply in Indonesia, especially when dealing with business and legal issues. Therefore, it would be better if you want to set up a company, ask for help from a local legal consultant who is familiar with the bureaucracy in Indonesia, who is accustomed to dealing with local government offices and related ministries.

Not Sure/Doubt About the Chosen Business Field

doubt about the chosen business field

The most severe obstacle, KBLI (Baku Classification of Indonesian Business Fields), where you must be able to determine what line of business you will run. Because this is related to the business that you will run in the future.

If you plan to establish a company in the form of a local PT, PT PMA (foreign) or other types of business entities, then you must pay attention to KBLI to help identify the business license you will need for the company you are establishing.

Company Capital that is not in Accordance with the Provisions

Company capital that is not in accordance with the provisions

It is very important to be understood by entrepreneurs who want to establish a Limited Liability Company (PT) or other legal entity in Indonesia.

Here below there are three types of capital that must be known.

  1. Authorized Capital
  2. Issued Capital and
  3. Paid-in Capital.

The total capital will be divided into a group of shares.

Location of the Company is not Good

Location of the company

The location or business domicile of a company run by business actors must be adjusted to the zoning made by the local government.

Being in the right location is a key ingredient in business success. If the company chooses the wrong location, it may have inadequate access to customers, workers, transportation, materials, and so on. As a result, location often plays an important role in the overall profit and success of a company.

Location strategy is a plan to get the optimal location for the company by identifying the needs and goals of the company, and finding a location with an offer that suits these needs and goals. In general, this means the company will seek to maximize opportunities while minimizing costs and risks, because it has received legal protection.

Choosing the Wrong Legal Consultant

legal consultant

Choosing a legal consultant who provides company registration services is a bit tricky. If you do not pay attention to this, in the future, the consultant can provide significant losses for you. So, before deciding to make the right choice of Legal Consultant, make sure they meet all the requirements as a professional registration Consultant.


A successful start-up is not created by one person but requires team hard work. In order to avoid several factors that cause errors/failures in starting a business/establishing a company.

Find out more about the guide to starting a Company Incorporation in Indonesia.

Indoservice, a secretarial and licensing services consulting company firm that can assist you in establishing a company in Indonesia and business-related licensing. Trusted and experienced in Indonesia, committed to providing the best and fast service to meet your needs.

Our consultants will assist you in the process of establishing a company and obtaining permits related to your company’s business in Indonesia. Contact us now for special offers at +6281818811887 & +6287714498500 or


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Common Mistakes When Starting Establishment Companies
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Common Mistakes When Starting Establishment Companies
If you're looking to starting establishment companies and business, here's a list of common mistakes you need to be aware of.
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