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Opening a tourism business in Indonesia

Company incorporation

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Registering a company in Indonesia in 2020

Key benefits of doing business in this jurisdiction:

  • This jurisdiction is in the World Trade Organization (WTO);
  • Indonesia ranks 7th place in the regular increase in GDP;
  • Batam is the first special economic zone (SEZ), offers several tax benefits;
  • A possibility of 100% foreign ownership;
  • Indonesia has 65 Double Taxation Avoidance Agreements (DTAA) in different countries.

A cost of registering a business is from €13900

A company registration period is from 20 days

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The tourism industry is booming in Indonesia, leading the country to the economic prosperity. The favorable location of the country, impressive landscapes and a nature contribute to this. For these reasons, many investors are looking for opportunities to start a business in Indonesia, especially in the tourism industry. If you need help in registering a travel company in Indonesia, this article describes all nuances of creating a travel agency.

A search and niche selection

One of the mistakes of the owners of young companies in the tourism business is the desire to sell everything at once, thereby causing a stream of fierce competition. This is not quite suitable for a startup.

What niche can be suitable for a travel agency? To do this, you need to conduct a study, identifying the market segment. A niche market is one, that has been studied by a minority of entrepreneurs.

Request personal advice on opening a tourism business with IQD Consulting experts, who will explain to you difficulties of a niche market research.

For example, during a niche study, it can be determined, that a certain group of consumers has special preferences in leisure. If you determine, that few travel agencies offer such services, your agency can offer them and occupy a niche, ensuring stable growth.

Assistance in creating an effective business plan for a travel company in Indonesia

A well-designed business plan will help keep the entrepreneur on the right track, leading to the opening a successful travel agency in Indonesia.

A business plan should include all key points, including market analysis, sales strategies. It is necessary to determine a financial framework of the project, financial forecasts. The plan should be as clear and concrete as possible in terms of representing business goals.

The plan must specify all necessary resources, that may be needed during the establishing a travel company in Indonesia, limitations and problems, that the company may encounter while working, as well as strategies to address these obstacles.

Choosing a place and a company registration address

The success of a travel agency will largely depend on its location. If you plan to register a travel company in Bali, you need to choose a place, where people often gather, walk, so that the agency’s sign is clearly visible from a long distance. In addition, customers receive satisfaction from a clean office, located in a pleasant area. A convenient location will help to create the image of a reliable brand. We must not forget, that the office must be chosen, taking into account the fact, that the company will grow and the number of employees will increase.

A legal support in registration of a company for tourism activities in Indonesia

You will have to choose a name for the future firm. The name should be different from names of existing companies, not contain any offensive words or indications of communication with the government. Together with the name, you can, also, develop in detail the brand of your future company.

A help in registering an Indonesian brand

The development of an impressive company logo design, other items, such as brochures and business cards, is very important. A strong image will help you to stand out from the crowd, helping you to become one step above your competitors.

An identification of legal aspects

Everyone, who is going to open the Indonesian firm for tourism activities, must comply with laws:

  • Tourism Act, 2009;
  • Business Travel Certification, 2012;
  • Tourism Standards Act, 2014;
  • Requirements for the establishment of a travel firm.

A prerequisite is also the registration of the logo, used as a trademark.

Legal advice on the choice of the structure of the tourism business in Indonesia and the registration of the Indonesian travel company

Legal advice on choosing the structure of the Indonesian tourism business

Legal entities enter themselves in the Business Register of Indonesia to obtain permits for legal work in this jurisdiction. Forms of commercial enterprises of this type in Indonesia:

  • Indonesian LLC (Perseroan Terbatas) implies a minimum of 1 director, 2 local shareholders and a commissioner.
  • Foreign companies (Penanaman Modal Asing) are regulated by the Foreign Investment Law. A prerequisite is obtaining permission from the Capital Investment Coordinating Council.

To avoid problems, ask for personal advice on registering travel agencies in Indonesia with IQD Consulting experts.

Legal advice on obtaining a certificate for the tourism business in Indonesia

After registering a company, you must purchase a certificate for the tourism business. It should be noted, that requirements for obtaining a tourist license in Indonesia, may vary depending on conditions of a particular province.

Other actions after the registration of an Indonesian company

After the company is established, it is necessary to apply for BJPS (social and medical care), open a corporate account in an Indonesian bank, create company regulations (for companies with more than 10 employees), apply for KITAS for foreign workers in Indonesia, get legal advice on applying the protection of a commodity, etc.

Trademark registration in Indonesia

It is very important to protect your brand.

Read also:
To apply for TM registration in Indonesia you will need:
  • To draw up the statement itself, filling it out in Indonesian;
  • To attach the information about the applicant;
  • To make a description of the design of the brand;
  • To pay for registrar services.

If the application is examined, DGIP issues a certificate of registration and publishes the trademark in the official trademark newspaper.

Assistance in promoting and optimizing online activities

For starters, you should consider tools such as marketing and advertising, so that more people can learn about the new agency. For this, advertising in the form of print brochures, as well as advertising in print media, on the radio and on the Internet, is suitable.

Starting a tourism business, you need to take care of its visibility to potential customers, when they enter search queries in order to find services they need on the network. Typically, potential customers do not go beyond the first page of the search, leaving their choice on the top sites in the search results.

Therefore, the website of the travel company must be optimized, and its design is designed in the style specified by the brand.

Conclusions

Many entrepreneurs set overstated goals in an effort to make money instantly. However, most of them expect disappointment from failure. Setting realistic goals should bother investors in setting up a tourism business in Indonesia.

We must not forget, that in the tourism industry it is necessary to pay attention to customer reviews. Any client, who used services of your agency, and after that was satisfied, is likely to return again.

If you have any questions, related to the establishment of a travel company, you can disassemble them by requesting personal advice on registering travel agencies from IQD Consulting specialists.

In addition, our company is ready to assist in registering an Indonesian travel company, to provide a direct assistance in opening a corporate bank account, obtaining a tourist license in Indonesia.

To order qualified advice on registering a travel company in Indonesia or in any other country, please, contact us directly, in any way convenient for you.

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