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  • Company Establishment Options Comparison

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    K. Adrianeal
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    The document compares options for establishing a company structure in Indonesia. A holding company structure has strong points such as centralized tax and no need for extra capital or changes to documents. However, it requires business permits and carries chain risk from the headquarters to branches. Establishing subsidiaries has weaknesses including complicated documentation requirements, accumulated taxes, and need for new management for each subsidiary. Overall, a holding company structure may be preferable due to its lower costs and simplicity compared to establishing multiple subsidiaries.

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    The document compares options for establishing a company structure in Indonesia. A holding company structure has strong points such as centralized tax and no need for extra capital or changes to documents. However, it requires business permits and carries chain risk from the headquarters to branches. Establishing subsidiaries has weaknesses including complicated documentation requirements, accumulated taxes, and need for new management for each subsidiary. Overall, a holding company structure may be preferable due to its lower costs and simplicity compared to establishing multiple subsidiaries.

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    © All Rights Reserved
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    17 views1 page

    Company Establishment Options Comparison

    Uploaded by

    K. Adrianeal
    The document compares options for establishing a company structure in Indonesia. A holding company structure has strong points such as centralized tax and no need for extra capital or changes to documents. However, it requires business permits and carries chain risk from the headquarters to branches. Establishing subsidiaries has weaknesses including complicated documentation requirements, accumulated taxes, and need for new management for each subsidiary. Overall, a holding company structure may be preferable due to its lower costs and simplicity compared to establishing multiple subsidiaries.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 1

    Strong Points Company Options Weakness Points Remarks

     Central Tax Business Permit Needed Recommend


     No Extra Capital  Chain Risk (Headquarter - Lower Cost
     Documents Unchanged Branch) Simple
    (STO & NPWP) Holding Company → General  Lack of Expansion
     Can Control Branches Company  Document Changed
    Abroad or Easy to Organize (Deed of Establishment,
    Company Ministerial Decree, BIN/
    NIB, and Location Permit)
     No Limit Additional Permit  Accumulative Tax
     Easy for Expansion  Preparing New Company
     Holding Remains Stable Holding Company → Name, Logo, Tagline,
     Can Use Same Director and Subsidiary in Indonesia → Seal, BoD, Capital, Bank
    Commissioner for Branch Account, NPWP, etc for
    Subsidiary Company Each Subsidiary Company
    (According to Notary)  Complicated to Organize
    Company
     Holding Remains Stable if  Accumulative Tax
    Subsidiary Company  Need to Think About
    Collapse New Management for
    Subsidiary Company
     Extra Capital for
    Subsidiary Establishment
     Complicated to Organize
    or Control the Company
    Holding Company →
     Not Efficient (Need Extra
    Subsidiary in South Korea
    Time to Make Subsidiary
    in South Korea, Also
    Need to Prepare the
    Documents to Establish
    Subsidiary Company)
     Need Preparation to
    Transfer Capital to South
    COMPANY ESTABLISHMENT OPTIONS COMPARISON Korea

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