How long for company setup and visas?

[niksing]

I have been quoted times from our lawyer but wondering what other people's experiences are. We are setting up a PMA and applying for work visas for two of us. The process has already started and the initial request for foreign investment has gone off for approval. We are hoping it will be complete by mid January. Is this realistic?

Also, has anyone tried to set up a company and been declined or applied for work visas through the company and been turned down?

Another issue, how diffiuclt is it to renew work visas and PMA registration each year if we do it ourselves? This first time we are using a lawyer but the cost is pretty high and wondering if it is possible to do all the paperwork ourselves in future by making a trip to Jakarta or returning to Singapore to sort out.

Thanks,

Nikki

 

[jeroler]

Hi Niksing

we will do the same process than you
and for that we are in contact with a consultant
try Okusi Associates, they sound to be good and cost for everything is about 4400 USD for setting up company and one Kitas (including government fees)

we will start the process in february to be ready in June (they promise only 2 month delay for setting up and Visa)

Bye bye

Jérôme

 

[DCC]

Just curious why a PMA as it is more costly, etc. - but my agent quotes +-8 months for the PMA. Good luck!

 

[niksing]

jeroler, thanks for the info - this is pretty much in line with what we have been told as well, so it is good to hear this.

DCC, we are not starting a new company from scratch but continuing with my existing company which is already an established business. We felt, looking at all the options, we preferred to have a 100% foreign owned set up in Bali. The cost is a lot higher buut for us we felt it was less complicated because of the allowance for having just ourselves as the investors and shareholders etc.

Nikki

 

[Gongchime]

I just got a bit of a windfall and am wondering what to do with the money. I'm interested in trying my hand at entrepreneurialship but clueless about what might be effective in Bali. Any ideas? Comments such as invest in stocks and forget investing in Bali are welcome too. Negative feedback is better than no feedback.

 

[Roy]

DCC, we are not starting a new company from scratch but continuing with my existing company which is already an established business. We felt, looking at all the options, we preferred to have a 100% foreign owned set up in Bali.

Yes, you can initate a PMA in Indonesia at 100% iniitial foreign investment, but sooner or later (15 years?) you will have to sell off some of your company ( 5 % minimum) to an Indonesian investor.

Why start off “at the top” when you can minimize your investment risk, as well as all the very high associated costs for your first year or two with another company start up? With that said, I agree totally that Okusi enjoys an excellent reputation.

Gongchime, you should get yourself over here, meet some people and have an honest and hard look at Bali. In doing that, you will meet many people, discuss ideas and dreams, experiment if you like, but keep your “windfall” safe before jumping in with two feet first.

 

[rien.gluvers]

Re: RE: How long for company setup and visas?

but sooner or later (15 years?) you will have to sell off some of your company ( 5 % minimum) to an Indonesian investor.

This is not what BKPM is telling me.

 

[iainsomers]

Re: RE: How long for company setup and visas?

I just got a bit of a windfall and am wondering what to do with the money. I'm interested in trying my hand at entrepreneurialship but clueless about what might be effective in Bali. Any ideas? Comments such as invest in stocks and forget investing in Bali are welcome too. Negative feedback is better than no feedback.

If you dont have a clue about what sort of bussiness you want, just dont be a entrepeneur! If you doubt, then for the time being only invest in lquid investments.

If you dont know anything about stockmarkets I would do the following.

For an investment with a miniumum horizon of 10 years (for shorter than that I have no investment advice, only trading advices):

1. Search for a cheap but reliable broker.
2. Buy a good finacial newspaper
3. Make a list of all the companies that you know anf from which you understand their bussiness.
4. Take away all that have had a negative return for the last 2 years
5. Found somebody who thinks he knows a lot about stocks (friend/collegaue). Show him your list and ask him what he thinks the 4 best stocks are and which is the worst.
6. Invest 15% of your capital in each of the mentioned stocks (including the "worst"-one)
7. The last 25% you use to buy more if it goes down (at least 20%), to spend or to invest in something else.

A better way is to put it on a deposito and read 100 books about stock markets and then make your own opinion.

 

[Gongchime]

Dear Roy, that's kind of the plan. Was just trying to weigh the pros and cons between setting up in Thailand to setting up in Bali. I should have been more specific.

 

[Roy]

Rien, from Okusi Associates:

http://www.expat.or.id/business/company ... hment.html

For those companies choosing to make a 100% foreign investment, there is a requirement that 15 years from the commencement of commercial operations, the 100% foreign shareholder must sell at least 5% of the firm to an Indonesian entity. A company which is initially 95% foreign owned is not subject to any divestment requirement.


Perhaps this no longer applies and this web site has not been undated?

 

[rien.gluvers]

I will send an email to bkpm once more just for this one question. Want to haven the latest about this in writing from them.

As soon as I have their reply I will post it here.

 

[Roy]

Rien, while waiting to “hear” from BADAN KOORDINASI PENANAMAN MODAL...(BKPM), I wouldn’t be holding my breath.

 

[Gongchime]

Iainsomers,

I thought I sent you a private message but looks like maybe it didn't work for some reason as there is nothing in my sent box. I responded to your proposals;

>If you dont have a clue about what sort of bussiness you want, just dont be a entrepeneur!

I'd like to be involved with selling Indonesian cultural products but I'm getting the impression that it's not possible to make a real living if selling them only in Bali.


>If you doubt, then for the time being only invest in lquid investments.

I've got my money in an investment bank currently

>If you dont know anything about stockmarkets I would do the following. For an investment with a miniumum horizon of 10 years (for shorter than that I have no investment advice, only trading advices): 1. Search for a cheap but reliable broker.
2. Buy a good finacial newspaper
3. Make a list of all the companies that you know anf from which you understand their bussiness.
4. Take away all that have had a negative return for the last 2 years
5. Found somebody who thinks he knows a lot about stocks (friend/collegaue). Show him your list and ask him what he thinks the 4 best stocks are and which is the worst.
6. Invest 15% of your capital in each of the mentioned stocks (including the "worst"-one)
7. The last 25% you use to buy more if it goes down (at least 20%), to spend or to invest in something else.

Not inclined to do any of that.

I'd reveal the amount to you in an email or private message but not here. It's sizeable enough that I might be able to live off the interest. But since it's not enough for the Thai requirement for a retirement visa and I'm not older than 55, I can't get a retirment visa in Thailand. Not sure about Bali.

In any event I think I'd need to have some kind of business, even if it only breaks even, in order to live in Bali with whatever kind of visa would allow me to do business. That way I could start really small and learn the ropes before making a larger investment.

Otherwise I don't think they'll let me live there off the interest.

Anyway, the statistics say that most people who become truly wealthy figure out how to run their own businesses and not though investments although they may also be engaged in them. I never had the opportunity but it's never too late to learn.

I have a Korean friend who is making flights to Indonesia and Thailand regularly to purchase jewelry for his shops in Korea. He is encouraging me to do something similar. Although, I would not be living in Korea or America to sell the Southeast Asian cultural products. Still trying to figure out how to make it work.

 

[shebitme]

Before any investing, particularly property or the stock market, you need to first invest in your financial education. But I don't think it is an arcane artform. If you can identify companies who are consistantly increasing profits by say 15-20%, then they are worth investing in (of course you need to look at their current situation). But it is not difficult to put a portfolio of shares together which will give a healthy return. Look at the managed funds, and what they are returning, then purchase the same shares, or simply purchase the Managed Fund.

 

[Gongchime]

Definitely like managed funds much better. Especially the socially responsible ones. Although not sure of the return on most of those.