It also specifies the terms of registration and the procedures to be followed when forming a foreign corporation in Indonesia. The registration of foreign investments in the country is governed by this regulatory compliance law. These rules are designed to prevent legitimate firms and their products from being copied or modified by the general public. Well-known brands from Indonesia and other countries are recognised under trademark and geographical indication rules. Trademark and Geographical Indication Laws Companies with development boards must have at least 500 shareholders who meet the same criteria.
The second is the development board for companies that have not met all of the mainboard’s listing standards. To become a publicly listed company, they must have at least 1,000 shareholders with securities accounts and all shareholders must be stock exchange members to be listed on the mainboard. The mainboard lists prospective enterprises and issuers with substantial track histories. The law establishes two mainboards on the IDX, both of which are under the supervision of the OJK. The Capital Market Law is an Indonesian regulation that governs company listings on the Indonesia Stock Exchange (IDX). If you have successfully incorporated a company in Indonesia, learn more about the importance of post-incorporation compliances that may affect your business. It goes over each of the preceding legislation in great detail and provides very detailed definitions of the processes and procedures that must be followed by all Indonesian businesses. This is the primary law in Indonesia that controls regulatory compliance. Regulations Applied to Indonesian Companies Indonesian Company Law How simple or difficult it is to conduct business in a given country is determined by the effectiveness of regulatory compliance rules. Regulatory compliance refers to a company’s adherence to policies, rules, and procedures that define the rules that it must follow during its operations. This article will discuss the regulatory compliance in Indonesia that all companies need to comply with to ensure that their business operations may be conducted in the proper ways.
However, the regulations must also be flexible enough to protect foreign companies and encourage foreign investors to invest in the country. Such regulatory compliance standards are implemented to protect companies, consumers, and the government against corporate misbehaviour that may cause negative business conditions. Most countries’ company laws specify what is considered appropriate by corporations operating within their territory.
Regulations Applied to Indonesian Companies.