Starting Up A Business in Indonesia : A Checklist
31 October 2022
Every business starts with an idea. When you start a business, however, just an idea won’t be enough. You need thorough preparation and work on everything from the ground up to make sure that your business stands on a solid foundation. When you have dealt with the legalities and the bureaucracy, starting a business in Indonesia is not any different than starting a business anywhere else. Today, we will walk you through a checklist of things you should prepare to get your business up and running.
Define Your Unique Selling Points
It’s crucial that you specify what sets your company apart from the competitors. Try to summarize it in two phrases, then learn it by heart. Every time you make a pitch to investors or potential clients, you’ll use it.
Your Business Name
Your business name reflects your values, your unique selling points (UPS), what you do, and the overall image of your business. Don’t rush. Take your time to decide on a good business name and make sure it is available for your company. Note: When you form a limited liability company (PT company) in Indonesia, you can use a different PT name and brand name. Your PT name should consist of between 2 – 4 words.
Decide on Your Business Structure
Your business structure describes how you conduct business and may have an impact on your legal and tax responsibilities.
Solo Small Business:
The smallest business unit. As a sole proprietor, you have full control of your business.
A small business consists of two or more persons who share profits or losses.
A medium to big business unit with a more complex structure. It restricts your liability because it is a separate legal entity.
Some businessmen who cannot stay in Indonesia usually appoint a trustee to run and take responsibility for the business operations.
Register Your Business for Taxes
Following your business structure, you need to organize you’re your tax ID and register that with the tax office.
List the Expenses That Can Be Deducted from Taxes
Make sure to speak with your accountant about how office rent, equipment expenditures, and internet fees can all be deducted from your taxes.
Create A Fool-Proof Business Plan
This is one of the most important parts when starting up your business in Indonesia. Think about your business plan as your foundation, map, and GPS. A solid business plan helps you at every step of beginning and running your company. A good business plan will:
- act as a road map for how to set up, manage, and expand your new company. It’s a means to consider and describe all the important aspects of how your firm will function.
- assists you in taking a step back and considering your company’s essential components objectively. It also guides your decision-making as you proceed.
- help you in obtaining funding or recruiting new company partners. A good business plan convinces investors that they will get a good return on their investment.
Open A Business Bank Account
Never mix business accounts with your ones, even when you are just starting a small business in Indonesia. Keeping your business finances separate is usually a good idea. Additionally, a PayPal account and credit card may be helpful. Before opening the account, inquire with the bank about its unique requirements for opening a business checking account; some banks’ procedures are very straightforward, while others are very complicated. Some banks in Indonesia require a domicile letter for business accounts, while others might not.
Ensure That Your Business Will Be Profitable
After all, you want to set up a business to gain profit. However, it can take years for a newly established business to discover how to make a profit. You’ll require the appropriate information, approaches, and tools, as well as a strategy. You can create profit and loss projections using accounting software. Obtain advice from a financial or accounting professional. Our expert in Synergy Pro can help you to evaluate every aspect of your business, taking notes on where you can cut your expenses and increase efficiency.
Create A Website or Social Media Account
Some companies today are still unaware that the bulk of their clients will visit their website before completing a purchase. For producing more income, having a good online presence—especially a website—can make all the difference. If your business is not large enough to run a website, you can run a social media account instead. The key is, you have a strong online presence telling your audiences that your business exists.
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