Category: Business Structuring
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From an Informal Trade to a Registered Company: Formalising a Small Business in Indonesia
Diajeng Lestari started HijUp with roughly Rp5 million, and Syukriyatun Niamah started Robries from a university dormitory. Both are registered companies now. This article sets out the path from an informal trade to a registered company in Indonesia, the individual company one person can form, the licensing and tax registration involved, and the credit that… READ MORE →
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Women Founders in Indonesia: Nurhayati Subakat, Who Rebuilt After the Fire
Nurhayati Subakat built Indonesia’s largest cosmetics company from a home business begun in 1985. Women own 64.5 percent of the country’s MSMEs, and this series opener sets out what turns a woman-led business from an informal trade into one a bank or an investor can fund, and the founders, Indonesian and foreign, who did it. READ MORE →
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Founder and Employee Equity in Indonesia: Vesting, Options, and Buy-Backs That Comply with the Rules
In Indonesia shares must be paid in full when they are issued, so a grant that vests through future work records unfunded capital that a buyer later inherits. This sets out the two funded designs, an option and reverse vesting, the Article 37 buy-back limits, the good-leaver and bad-leaver terms, the tax on exercise and… READ MORE →
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Sweat Equity in an Indonesian Company: Why Effort Is Not Capital, and What Works Instead
In an Indonesian company, payment for shares must be money or an asset the company can value and receive, so personal effort cannot be paid-up capital. Sweat equity recorded as paid shares is unfunded capital, which a buyer later inherits. This sets out where an owned asset does qualify, the four lawful routes that reward… READ MORE →
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Unpaid Share Capital in an Indonesian Company: The Obligation a Share Sale Does Not Erase
In an Indonesian company, the proof that shares were paid can be a statement the company signs itself, not a bank record. Unpaid share capital then survives a share sale, and a buyer of 100 percent inherits the shortfall. This sets out how the gap arises at incorporation, on a later increase, and through sweat… READ MORE →
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Why Your Indonesian Business Needs a Custom Company Constitution
In Indonesia, an Akta provides a legal foundation, but a custom company constitution offers essential governance and flexibility. Learn why your business needs both. READ MORE →