Set up a company with Local Nominee Shareholder

MAM Corporate Solutions’ local nominee shareholder company provides foreigners the easiest and the fastest way to conduct business activity in Indonesia especially in sectors that are closed for foreign investment.

Other legal entities

PT stands for Perseroan Terbatas which means a Limited Liability Company. It is one of the most popular legal entities in Indonesia. Apart from local nominee shareholder company, investors (Indonesians or foreigners) have the following other three options:
i. Buy an off-the-shelf company to save time,
ii. Establish a Foreign Direct Investment Company known as PT PMA, or
iii. Establish a Representative Office

Business opportunities in Indonesia for foreign investors

Indonesia, with more than 17,000 islands, and over 1.9 million square miles of land, is the 15th largest country in the world. This country is one of Asia’s most populous countries which make it a potential market for any business product or investments.

How about Indonesia’s economic prospect, especially related to foreign investment?  According to the World Economic Forum’s Global Competitiveness Index 2017-2018, in 2017 Indonesia has ranked 36 from 137 surveyed countries in terms of global competitiveness (Read more; Indonesia’s competitiveness ranking). A report issued by the United Nations Conference on Trade and Development (UNCTAD) called the Global Investment Prospects Assessment 2016-2018, has ranked Indonesia in the ninth position in its list of the most attractive global foreign direct investment locations (Read more; Indonesia – 2018 Economic Outlook).

This means Indonesia’s economy will continue to soar. Therefore, you need to invest in Indonesia as soon as possible.

Challenges for foreign investors

Indonesian government has laid down specific rules for foreign investors if they want to start business in Indonesia. For example, Indonesian government has issued a Negative Investment List according to which:

  • Some business sectors does not allow foreign shareholding at all (which means all shareholders must be 100% Indonesian citizens), and
  • Some business sectors allow foreign shareholding but with at least certain amount of local shareholding. For example, for certain business sectors, foreign shareholders can only hold 67% of the share meanwhile the remaining 33% belongs to Indonesian shareholder.

Cooperating with people you barely know from a foreign country sounds risky, right? If something happens in your company — dispute between you as the foreign investor and local nominee shareholder — the Indonesian government may be at the local nominee shareholder’s side. Furthermore, the local nominee shareholder (if she or he is acting as the director) will run the company and you will be eliminated from business that you invested yourself.

How can MAM Corporate Solutions help foreign investors

However, MAM Corporate Solutions provides you solutions to make your investment safer with local nominee shareholder’s involvement:

Here is how MAM Corporate Solutions can help you:

  • Have more than one local nominee shareholder or Indonesian shareholder. You need to do this to avoid one person owning majority share. We can even recommend you names of the Indonesian people to be your local nominee.
  • MAM Corporate Solutions will ensure that all of your agreements with the local nominee cover all your rights. All of the agreement must be signed in front of Indonesian authority. We can provide appropriate set of agreements to protect your ownership without breaking Indonesian laws.
  • MAM Corporate Solutions can help you to establish a representative office if you want to have one with 100% of ownership by you as the foreign investor. Through representative office, you can conduct research, marketing, and promotion activities (but all revenue have to go directly to the head office).
  • In terms of safety, it is better for you to withdraw money from the company in a regular basis. MAM Corporate Solutions can help you to open a corporate bank account with access to internet banking.

What kind of agreements that we can provide?

  • Loan agreements between you as an investor (the lender) with the local nominee (the borrower).
  • Director Appointment Letter: you as the investor appoint the people you choose to run the company.
  • Shares Agreement between you and the local nominee.
  • Any other agreements you may need according to Indonesian law.

Contact MAM Corporate Solutions

You can contact us here or provide below as much detail about your inquiry as possible to receive the most relevant response.

    Would you like to meet?

    If you want to meet and discuss, you can easily make an appointment here.

    Thanks to the efforts of the MAM Corporate Solutions team, we can now sell our products under the banner of the incorporated company. We appreciate how the MAM Corporate Solutions’ team is responsive and informative. The team’s best asset is their consistent communication.

    Damara Tiyas
    Chief Operating Officer, New Santara Global