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Company Formation Singapore



Company Formation Comparison: Singapore Vs. Indonesia

Updated on Monday 18th December 2017

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CF-comparison-Singapore-vs-IndonesiaForeign investors are very attracted to the Asian markets as countries here have different demands, and thus make room for all kinds of businesses. During the last few years, Singapore has become one of the most important business hubs and together with it neighboring countries like Malaysia and Indonesia have started to attract the attention of foreign enterprisers. Because they have similar regulations and laws on foreign direct investment, Singapore and Indonesia could also be considered rivals. But what are the main differences between opening a company in Singapore and setting up a business in Indonesia? The comparison between the company formation procedures in Singapore and Indonesia below should answer this question.

The most common types of companies in Singapore and Indonesia

The first difference between Singapore and Indonesia in terms of company registration is the types of companies allowed for foreign investors to set up. While Singapore provides for the same regulations for both local and foreign enterprisers who can set up limited liability companies under the exact same terms, Indonesia has designated the foreign owned limited liability company for overseas entrepreneurs which is slightly different when it comes to the registration requirements that the limited liability entity for local investors. Foreigners are required to invest a significant amount of money (around 1.2 million USD) in order to set up a company in Indonesia and various licensing requirements are in place. Contrary to this, Singapore offers many more benefits to foreign investors interested in setting up companies here.

If you are interested in company formation in Singapore, our local experts can offer information about the requirements and facilities granted to foreign enterprisers.

Company registration in Singapore vs company formation in Indonesia

When it comes to the company registration procedures, Indonesia and Singapore are a bit different. Opening a company in Indonesia consists in:

  • -          obtaining the standard format for the company statutory documents;
  • -          obtaining the business name;
  • -          notarizing the incorporation documents;
  • -          paying the taxes for legal services;
  • -          filing an application with the Ministry of Law and Human Rights for the approval of the statutory documents;
  • -          applying for the business license.

On the other hand, registering a company in Singapore implies:

  • -          reserving a company name;
  • -          drafting the documents for incorporation;
  • -          filing the documents and registering for taxes with ACRA;
  • -          applying for a corporate seal.

For assistance in opening a company in the city-state, please feel free to contact our Singapore company formation consultants.



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