How to Live Legally in Indonesia as Foreigners? – Speaking of how to live legally in Indonesia, you need either to work under a legal entity in Indonesia or have an Indonesian spouse. If you have an Indonesian spouse, you must obtain Spouse KITAS (limited stay permit) which valid for one year and can be extended until five times and after your marriage already lasted more than two years, you can use KITAP (permanent stay permit).
On the other hand, if you don’t have an Indonesian spouse but you plan to expand your business to Indonesia, you can establish a company or legal entity in Indonesia as it’s quite advantageous for example if you want to get a Right-to-Use of owning a property in Indonesia.
The legal entity in Indonesia is called Perseroan Terbatas (PT) can be divided into two,
For establishing a company, there are some requirements that you need to complete:
1. This entity at least requires two shareholders, can be an individual or private limited company then decide who will be the Director and Commissioner of the company.
2. The office should be located in an Office Building around where you register your company.
3. Minimum paid-up capital and investment.
4. Prepare three names for your company which consists of three letters. After all the requirements above completed, the next steps are:
The company already registered legally in Indonesia, then the foreigner needs to be registered in Immigration as the one who works in this company with a working permit or KITAS. In this stage, the foreigner is required to have an address where he will reside in Indonesia. If the KITAS stage is finished then the foreigner is eligible to open a bank account in Indonesia also to buy a property.
But, don’t forget, to maintain the legal entity in Indonesia, you need to concern about your corporate financial and report the tax regularly based on the Indonesian Law. Therefore, not a few start-ups or a small-scale company are looking for tax, accounting, and payroll vendors to help them reporting tax to the local tax office, calculating payroll every month until preparing the financial statements on behalf of them.