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  • Foreigner Setting Up a Small Consulting Company?

    Hey Folks,
    Me again, I tried searching this area of the forum for info on setting up a small consulting company... but turns out the word "consultant/consulting" is quite frequently used.

    I'm an American citizen that has lived in Indonesia for around 7 years off and on since 2007. If anyone has any resources or info on setting up a small consulting company that you could point me towards that would be very much appreciated. I've found info on what is needed for large consulting companies (PMA), but that's way out of my scope.

    So yeah, any info or links would be greatly appreciated and if any additional info is needed please let me know as I know this is a general question (no idea if the registration would be national or only in one region, no idea if it's classified by industry: oil, logistics, hospitality, or if it covers a broad range), so was just hoping to find some info to start from before going into further detail.
    Thanks guys,
    Brandon

  • #2
    Hi Brandon,

    Yes, there are many questions that needs to be answered before answering to your queries. From what I know ;

    1. What is the purpose for setting up small consulting company? Are you planning to sponsor your KITAS by your company? If yes, you need to start a PT(PMA) as foreign nationals quota will be available only with PT/ Limited liability company.
    2. Is your wife/ would be wife Indonesian national? If yes, there is an option to start company in her name and recruit yourself as a director.

    Yes there are registration requirement saying area of operation/ region. Also for starting a firm, you may require some permits/ approvals from industry/sector that you wish to enter.

    Comment


    • #3
      Setting up a small business is (as far as I heard) very easy and there are a lot of information of how to do it in the internet , but in Indonesian language (look for mendirikan usaha kecil or similar) .

      But only Indonesians can own small/medium businesses in Indonesia . Foreigners can only own relatively big PT PMA .

      See below an example of a CV . There are businesses even smaller than a CV .


      http://www.livinginindonesiaforum.or...-to-setup-a-CV (CV setup)
      Last edited by marcus; 14-02-18, 18:57.

      Comment


      • #4
        Originally posted by KenGmail View Post
        ... 2. Is your wife/ would be wife Indonesian national? If yes, there is an option to start company in her name and recruit yourself as a director ...


        To work , it must be after marrying an Indonesian and getting a KITAS sponsored by the spouse , and from the non-official statement from the Manpower Department , the foreign spouse can only work informally in the small business (no official work position) .
        Last edited by marcus; 23-06-18, 12:31.

        Comment


        • #5
          Hi Guys,
          Sorry for the late reply, I was in transit to the Mentawais and have been really busy getting things organized since I just got back here.

          Yeah, what I'd like to do is be able to get a kitas and be able to work for multiple companies (consulting). I have experience in the tourism industry from everything to dealing with guests, managing local crew, organizing/overseeing construction projects, organizing logistics, sourcing required material, welding, woodwork, mechanic and so on. Kind of a jack of all trades but master of none. Out here we have homestays, camps, resorts, charter boats, auxilary services to support all of the above, and many other facets.

          Here in Padang/Mentawais, immigration has been really harsh and I've had friends in the last year that had a kitas from one company, get arrested, fined, and kicked out of the country for working on a different boat in the one case. So that's my worry, when I was working here I had a kitas, paid my taxes, and did everything by the book through the company, but now that I am no longer directly working for my old company, I'd like to be able to use my skills in other areas but have no idea what that would require. As far as if it is possible to do a "consulting" style work permit , I'm not worried if I'd have to set it up in a local friends name if that is possible (I'm not married). I mean I'd still like to have my name on the company if possible as I will be paying for it, but it's not like I'm building a brand or anything like that that would gain the company a lot of value, the value is in my knowledge and I'd just really like to not have to worry if say I helped out company A for a few weeks on a project, then later helped company B for a month or whatever on a different project, or like just recently helping salvage a sunken boat. I just really don't want any problems with the government or to get kicked out of Indonesia, I'm in it for the long haul here and love this country, just need to figure out how to do it right.

          Thanks for the help and I'll start looking into those links as it is much appreciated.
          Brandon

          Comment


          • #6
            Originally posted by Nebraska View Post
            (1) ... Yeah, what I'd like to do is be able to get a kitas and be able to work for multiple companies (consulting)...

            (2) As far as if it is possible to do a "consulting" style work permit , I'm not worried if I'd have to set it up in a local friends name if that is possible (I'm not married). I mean I'd still like to have my name on the company if possible ...

            (1) There is no work KITAS for freelancer . A work Kitas must be sponsored by an Indonesian based PT company with many restrictions :
            - you must be a work expert (minimum 5 years in a specific kind of work) , according to the new Regulation Permen no.16 , year 2015 ;
            - you cannot do any work other than the one specified in your Work Permit ;
            - you can have only 1 Work Permit (except Directorsand similars) .

            (2) The only way I see is to work for a PT company specialized in doing consulting work . Your name as one of the owners of the company is only possible for a PT PMA company .

            Comment


            • #7
              Originally posted by marcus View Post
              (1) There is no work KITAS for freelancer . A work Kitas must be sponsored by an Indonesian based PT company with many restrictions :
              - you must be a work expert (minimum 5 years in a specific kind of work) , according to the new Regulation Permen no.16 , year 2015 ;
              - you cannot do any work other than the one specified in your Work Permit ;
              - you can have only 1 Work Permit (except Directorsand similars) .
              (2) The only way I see is to work for a PT company specialized in doing consulting work . Your name as one of the owners of the company is only possible for a PT PMA company .
              Hi Marcus, thanks for your help again (http://www.livinginindonesiaforum.or...visa-an-option)
              In that case the insurance company decided to pay it out and the boat was sent back to the builder in Jakarta so I wasn't needed, but still it was great to know there was a second option. Really appreciate all your help here.

              So in the case of (1) that you posted, I know most of the Indonesian law is kind of more of a gray area versus laws in the States from my experience, so say if my kitas was for tourism, which I have over 5 years experience and could ad value to Indonesia, could that include multiple companies in the "tourism/host" field, which could also include the categories such as I mentioned? Such as the company I worked for was licensed to host guests, but that included the back end stuff like having boats running, generators running, infrastructures getting built, and organizing all the things to make it work, because without that support, there wouldn't be any guest coming anyways if the company didn't have guys like me. Again, I know it's not a simple question, but that was the reality of my work here.

              And so number (2), again forgive my ignorance, my biggest worry is being able to legally work here with the hopes of me being able to work for different companies in my field of experience (which goes back to the category of question 1 and what is included in that field) and that's my end game no matter how it needs to happen. I understand what you are saying is if I want my name on the company I would need to do a PT PMA, which is out of my league, but are you saying that it might be possible under a local PT? I would gladly do that if it makes it possible for me to work here in this field. I know it would be my money used to set it up and that will be my risk, which is why I said I'd like my name on it initially. But in the end, if that is not possible, the more important thing is me being able to legally work here because I don't feel I will be building a brand or building value to the PT other than the work I'm willing to do myself. So if it is possible, I'd still be interested in any way to make it happen... unless it's going to cost me my life savings.

              Thanks again, I really appreciate it.

              Comment


              • #8
                Originally posted by Nebraska View Post
                (a) ... I know most of the Indonesian law is kind of more of a gray area versus laws in the States from my experience,

                (b) so say if my kitas was for tourism, which I have over 5 years experience and could ad value to Indonesia, could that include multiple companies in the "tourism/host" field, which could also include the categories such as I mentioned? Such as the company I worked for was licensed to host guests, but that included the back end stuff like having boats running, generators running, infrastructures getting built, and organizing all the things to make it work, because without that support, there wouldn't be any guest coming anyways if the company didn't have guys like me ...

                (b1) And so number (2), again forgive my ignorance, my biggest worry is being able to legally work here with the hopes of me being able to work for different companies in my field of experience ...

                (c) ... I would need to do a PT PMA, which is out of my league, but are you saying that it might be possible under a local PT? I would gladly do that if it makes it possible for me to work here in this field. I know it would be my money used to set it up and that will be my risk, .... So if it is possible, I'd still be interested in any way to make it happen...

                (a) I know only few Indonesian Laws (less than 10) and partially , but the Laws I know are mostly clear . I suppose you have this idea of "gray area" because most agents and many government officers don't know much about Laws and Law enforcement are not strong .

                (b) "Kitas for tourism" is misleading . Better "Work KITAS" for working in the tourism sector .
                I am not a Work KItas specialist , but from what I learned in this Forum and from the Work Law and Regulations , I think that your kind of work expertize is difficult for getting an one year Work KITAS , because your work range is too broad and it makes difficult to prove the necessary 5 years specific experience related to a college/university diploma (according to Permen no.16 , year 2015) . A Forum member said that Manpower Department is issuing only a 6 months Work Permit/KITAS (not extendable) for advisers (no need of the 5 years experience) .

                (b1) The only way I see it is being hired by eligible PT with up to 6 months Work Permit/KITAS , later looking for another PT for another up to 6 months Work Permit/KITAS , and so on .

                (c) It would not be worth to set up a PT to work only 6 months on it .
                Last edited by marcus; 23-06-18, 11:49.

                Comment


                • #9
                  Hey Marcus,

                  (a) yeah, sorry, I didn't state that in the best way but sounds like you knew exactly what I was talking about in regards to the "gray area". Out here things change by the day/official that you talk to even if the law doesn't change, and that's why I'm trying to make sure I do it right in regards to the actual law. I don't want to have to pay bribes or any of that usual stuff that goes on out here.

                  (b) I have had a work kitas for over 5 years here while working for my previous company and was technically I think an activities director (again, that fell under multiple skills for that title) at one stage among other titles in the tourism industry during my time (which I do understand is one of your points that it was not under one specific title for 5 years), but I do have a college degree in business and also 3 years college experience in one of the top engineering colleges in the States at the time while I was studying mechanical engineering among the other skills I learned along the way. But I also have work experience outside of Indonesia in those same fields but not sure if that would count towards anything here? Do you have any info you can direct me to in regards to the 6 month adviser kitas you mentioned? I will try and search the forum as well as I think that falls into my "consulting" field question, but just haven't had much luck finding something specific to what I'm trying to do. And not sure if it helps, but I'm 33 years old and have worked in quite a few countries doing small business consulting projects in the above mentioned fields.

                  (c) That's actually one of the plans of my business model, with current rule changes, and some of the Indonesian marine association members I've talked to, is that for instance in my region specifically, is that the plan is to get rid of western surf-guides within a 5 year grace period and western photographers even sooner (just talk right now). So I would help not only on advising for the business, but also help train the local crew to bring them up to a standard that westerner employees are currently filling along with what western guests expectations are. Such as what is to be expected of the business operator, what is to be expected of a surf guide, what is to be expected of the quality of the trip in regards to what current clientele is used to versus what is considered adequate now in local standards (IE: I know what bule expect because I'm a bule/ and Indonesians know Indonesia because they are local). I would basically train owners and employees on what it takes to become more inline with the global competition. Which like you stated is in the spirit of creating more jobs/success for the locals, but it could take years and years to accomplish that from a position such as I have mentioned I would like to do. And that's the main thing as I stated is I would like the freedom to work for multiple companies as a consultant/adviser to help them achieve that.

                  So on another note, I'm still a bit confused, lets say I roll the dice and setup a PT in one of my local friend's name, do you think it would be possible from what you understand of the law for me to be able to consult/advise for multiple companies if I did manage to fit into such a category? That's kind of the main thing, I already know I can get a kitas to work for one company, I've already had many offers that I've turned down in my area alone, but my main thing is if there is anyway I can consult/advice for multiple companies under one kitas/company through whatever structure I need to setup minus a huge investment such as a PT PMA. Or maybe can you point me in the right direction on how I should be researching it if possible? I've always been the go to guy to fix problems, but in so focusing on that, I never had to be involved or learn the local law side of things even after all my time here.

                  Comment


                  • #10
                    Originally posted by Nebraska View Post
                    (I) Do you have any info you can direct me to in regards to the 6 month adviser kitas you mentioned? ...

                    (II) the plan is to get rid of western surf-guides within a 5 year grace period and western photographers even sooner (just talk right now).

                    (III) So on another note, I'm still a bit confused, lets say I roll the dice and setup a PT in one of my local friend's name, do you think it would be possible from what you understand of the law for me to be able to consult/advise for multiple companies if I did manage to fit into such a category? ...

                    (IV) Or maybe can you point me in the right direction on how I should be researching it if possible? ...

                    (I) Search for Temporary IMTA/Work Permit in Permen no.16 Tahun 2016 .

                    (II) As far as I know , although the last Regulation is from 2015 , the basic rule is already old , didn't change . I suppose they are saying they will strictly follow the regulations due to Indonesian workers/lawmakers pressure .

                    (III) See my post no.8 above , item (c) .

                    (IV) I suggest reading the Regulation mentioned in (I) above and the many regulations in the tourism sector (I don't know them) . But I guess you have no other option than the one I mentioned .

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