Overview

Selecting the correct type of business vehicle is one of the most important first steps when starting any business. In general, two main types of business entity are available in Indonesia: incorporated entities and unincorporated entities. Examples of unincorporated entities include professional partnerships, firma partnerships and limited partnerships. Conversely, examples of incorporated entities include limited-liability companies, cooperatives, associations, foundations, higher-education institution and churches. Aside from these entities, Indonesian law also recognizes other types of incorporated entities, such as the Indonesian Red Cross (PMI), the Indonesia Deposit Insurance Corporation, Bank Indonesia and other institutions established based on a law.[1]