Starting a business in Indonesia can be a promising endeavor with the country’s growing economy and favorable business environment. To operate legally, companies in Indonesia are required to go through a company registration process, which involves several steps and requirements.

Here is a general overview of the company registration process in Indonesia:

Determine the Business Structure The first step in registering a company in Indonesia is to determine the appropriate business structure, such as a Limited Liability Company (PT), Representative Office, or a Foreign-Owned Company (PT PMA).
Obtain a Unique Identification Number (Nomor Induk Berusaha/NIB) All businesses in Indonesia are required to obtain a NIB, which serves as a unique identification number for the company and is used for various business activities, such as licensing, taxation, and customs clearance.
Notarize the Articles of Association The Articles of Association (AOA) contain important information about the company's shareholders, directors, business activities, and capital. It must be notarized by a public notary in Indonesia.
Obtain a Business License (SIUP) A business license is required for all companies operating in Indonesia and is issued by the relevant government agency based on the company's business activities.
Register with the Tax Office (NPWP) All companies in Indonesia are required to register with the tax office and obtain a Taxpayer Identification Number (NPWP) to fulfill their tax obligations.
Register with the Social Security Agency (BPJS) Companies in Indonesia are required to register their employees with the Social Security Agency (BPJS) to provide them with health insurance, pension, and other benefits.
Register with the Manpower Office If the company plans to hire employees, it must register with the Manpower Office to comply with Indonesian labor laws and regulations.
Register with the Investment Coordinating Board (BKPM) (for Foreign-Owned Companies) Foreign-Owned Companies (PT PMA) are required to obtain investment approval from the Investment Coordinating Board (BKPM) before registration.

What you will get for these services?

PMA & Local Company
  • Services throughout Indonesia
  • Free VO 5 Years
  • Notarial Deed
  • Decree of the Ministry of Law and Human Rights
  • Company NPWP
  • E-FIN Corporate tax
  • OSS Account
  • Tax SKT (Registered Certificate)
  • NIB (Business Identification Number)
  • Business License
  • Opening a Local Bank Account (BCA, BRI, UOB, MANDIRI, ETC)

Overall, registering a company in Indonesia can be a complex process that requires careful planning and attention to detail. It is advisable to seek the assistance of a professional consultancy firm or legal advisor to navigate through the registration process and ensure compliance with local regulations.

Whats the differences between PT and PMA?

Type of Company Minimum Capital Shareholder Main characterize
PT Depends on SIUP 100% local shareholder
  • Company are permitted to engage in a maximum of three distinct types of business operations
  • The required minimum initial paid-up capital for a small company ranges from IDR 50 million to IDR 600 million
  • The prescribed minimum initial paid-up capital for medium-sized companies falls within the range of IDR 600 million to IDR 10 billion
  • Large companies are expected to have an initial paid-up capital exceeding IDR 10 billion
  • A company may act as a sponsor for KITAS applications
  • Minimum 2 shareholders, 1 Director and 1 Commissioner
PMA Minimum Investment Plan is $1 million Minimum initial capital deposit of IDR 10 billion Depends on the negative investment list
  • In the form of a limited liability company, so that it can carry out complete business activities in Indonesia (including earning income)
  • Have the same rights and obligations as local companies
  • Only permitted to operate in 1 business area
  • Minimum 2 shareholders (can be individuals or legal entities)
  • The minimum organizational structure is 1 director and 1 commissioner
  • Minimum investment plan above IDR 10 billion
  • Minimum initial capital deposit of IDR 10 billion
  • Companies can sponsor many foreign employees
KPPA There is no minimum capital deposit Depends on the negative investment list
  • In the form of branch offices of companies abroad
  • Business activities are limited to marketing, research and promotion, which means that representative offices are not permitted to earn income or carry out transactions directly carried out by the head company
  • There are no shareholder requirements
  • There are no requirements for directors and commissioners
  • There are no capital requirements
  • Limited sponsorship for foreign employees (at least Head of Representative Office and Assistant Head of Representative Office)

At Market Entry Indonesia, we offer reliable and efficient company registration services in Indonesia to help businesses establish a legal presence and start operating in the country. Contact us today to learn more about our services and how we can assist you with your company registration needs.

Frequent Asked Questions

In Indonesia, you can register a limited liability company (PT), a foreign investment company (PMA), a representative office, or a branch office.

Some of the common requirements for registering a company in Indonesia include a minimum of two shareholders, a minimum paid-up capital, a business plan, a registered address, and a tax identification number.

The registration process typically takes around 2-3 months, depending on the type of company being registered and any additional approvals that may be required.

For a foreign investment company (PMA), you will need at least one local partner who holds a minimum of 5% ownership in the company.

Companies in Indonesia are subject to corporate income tax, value-added tax, and other taxes depending on the nature of their business activities.

Certain industries in Indonesia have restrictions on foreign ownership, and in some cases, foreigners may need to obtain a special license to operate in these sectors.