The Jakarta Post
Indonesian entrepreneurs have to take two important questions into consideration when they finally take their companies on that quantum leap to expand to foreign countries.
The questions are: Which foreign country, and which foreign partner? These questions will become critical once they have identified the prospective destination country and ideal business entity to assist in their overseas expansion.
Before we present the five highly attractive foreign countries for Indonesian companies’ overseas expansion, we will first explain the difference between a corporate branch and subsidiary, a vital distinction in all business expansions.
A branch is merely the geographical extension of the Indonesian parent company in a different jurisdiction. A branch conducts the same activities as the parent company, while it is a legal entity that remains subordinate to and dependent on the parent company. Branches do not represent separate legal entities, although the parent company must register all branches to obtain licenses for their operation.
Meanwhile, a subsidiary must be registered as a separate legal entity in the chosen jurisdiction. The parent company can register and administer subsidiaries under a different company name while directing it to engage in different or additional commercial activities outside the parent company’s specializations. The parent company is also not liable for its subsidiary’s debts and obligations.
Indonesian companies can enter a new jurisdiction through either a branch or a subsidiary. Possessing their own characteristics, the two options each offer promising ways to penetrate a different market and operational zone.
Expand your business in Hong Kong (Courtesy of https://pixabay.com//.)
The list below presents some of the countries to where an Indonesian entrepreneur can choose to expand his or her company:
Expand your business in Ireland (./.)
An Indonesian company with plans for international growth can open a branch or a subsidiary in the jurisdictions described in this article. You can also explore different business opportunities in other markets.