Incorporating Hassles
I’ve done some of my homework regarding the incorporating process of the business. Every now and then people kept telling me that you don’t need to incorporate before your business is big enough. While the word ‘big’ here is of course a relativity for everyone, they all based their arguments on one substance. Incorporating is such a hassle and complex method. So unless you have the energy, time, and money to do that, you’re better off not doing it.
After going through severaly notary to ask the contract, deeds, and incorporation method that I can choose, I now can see why they told me what the told me. Incorporating is full of hassles. To legalize your business in Indonesia you have to have a deeds made by a notary (akta notaris), NPWP (like an SSN in the US), TDP, Surat Izin Tempat Usaha, etc.
The most frustrating part on incorporating that you have to regularly report your company’s cashflow to the tax office, monthly, even if you don’t have anything to report yet (no profit, or the company doesn’t have an operational base whatsoever). To add to that, I also have to report my personal tax filling which is an arduous task to begin with.
I know I studied management and eventually corporate finance, but that’s the extent of my knowledge. I may know how to manage the cashflow of the company to stay profitable, I may know how to do the book filling to keep the company accountable and stuffs, but those are it. Taxing is a whole lot different dimension. That’s why they have a course on tax filling (Brevet A and Brevet B — I surely don’t know what those means).
So unless I fill the tax report by myself, I have to pay a professional to do it for me. Both of the option is not feasible because first, I don’t know a heck about tax filling, and second, the company isn’t big enough to pay a tax auditor (or tax filler, or whatever they called the job). My friend suggested me to just pay some guy that works in the tax office (please note the italics).
This is of course not an ethical decision to make because the money won’t go to the government’s pocket and therefore cannot be used for social development (in which we dangerously need). Plus, it can be categorized as bribery and that’s not good for my track record.
So now I have two options. Start learning how to fill the taxes or not incorporate at all. For the second option, that means I have to change the business model (including the profit center) alltogether.
Please tell me what you guys think about this (or if possible, another option).
gee…
i don’t really know what incorporating is…that word’s kinda new to me.
can’t you just get someone you know to do the thing for you? some relatives maybe? that already familiar with that kind of thing. just ask around people around you.
if it’s really possible just don’t do the PAY thingie.
it’s gonna be easier but…you have your reasons and i agree with it. unless, that is, if the person volunteerily help you without having to be paid.