Lombok fame as tourism and investment destination increases significantly after Mandalika MoTo GP Circuit is launched in 12 November 2021. Hence, a lot of foreign investors wish to jump to the bandwagon, but most of them are not sure how to start a business in Lombok.
By reading this article, you have started with the first most important step; internet research. This article gives you an important insight on how to start a business in Lombok effectively.
Below is Your Practical Guide on How To Start Your Business in Lombok
Check The Business Classifications
Business in Indonesia is classified into several classifications. It’s important to check which classification the business you are looking at belongs to. It’s required to determine whether it belongs to low, medium low, medium high, or high business risk.
Check The Foreign Share Ownership Limit
Some of business classifications allow up to 100% foreign ownership, some others allow only up to 40% and some others required partnership with local business actors.
Start a Company
After you’ve done with two checks above, you may start your own company in Lombok.
How to Start a Foreign Company in Lombok
Foreign company must be established by at least two share holders. They can be individuals, corporate or combination of both.
Minimum investment and paid-up capital value is above IDR 10 billion, excluding land and building value.
Prepare your company name, share holders ID cards, and company’s address, Wirajagat & Partners is happy to help you to obtain:
- Incorporation Act
- Ministry of Justice and Human Rights approval
- Tax Identification Number
- Business Identification Number
By this time, your company has come into existence and is eligible to buy land in Lombok with it. The right of ownership will be transferred to the company name.
Starting and Running The Business
Despite the company’s existence and it’s eligibility to buy land with it, to run a business under the company, operational and business licenses might be required. Depending on the business field, the licenses may vary. For instance, you need business licenses from local government to run a hotel, restaurant, cafe and bar etc. Obtain each and every license before you kick off.
Make sure your business is compliance to the laws and regulations. If you need more insight, talk to your Lombok legal expert or read other references over the internet.
Client's Testimony
As a foreign investor, being in the good hands of an honest and capable professional, with a well-established local network is absolutely critical. Pak Jagat continues to represent us as the Director of our PMA PT Kukenan Innovative Developments. This will continue to be the case in the long run as our project will continue to grow. I would not hesitate to recommend Pak Jagat’s services to anyone who is looking for a good attorney.
