Are you planning to register a company in Indonesia? This article provides detailed guidelines (requirements, procedures, and timeline) about company registration in Indonesia.

Whether you are a local or foreign entrepreneur, engaging a professional firm like Paul Hype Page to register a company is a good idea. Paul Hype Page is knowledgeable with the local law and regulations governing companies and is also skillful in handling ongoing Indonesia company incorporation’s regulatory and compliance requirements.

Basic incorporation requirements

Depending on the type of company that you are going to set up, there are different sets of requirements that you must comply with. The requirements consist of:

  1. Ownerships
  2. Minimum Capital
  3. Visa and Work permits; and
  4. Tax Compliance

Types of companies in Indonesia and its requirement

There are six (6) different types of companies are available in Indonesia:

1. Perseroan Terbatas(PT) 

Perseroan Terbatas (PT) is a local term referring to a limited liability company, and it is the most common foreign company option incorporated in Indonesia. It exists in three categories.

  • Small-sized
  • Medium-sized
  • Large-sized PT Company

The paid-up capitals vary depending on the category, and they are established upon the approval from the Capital Investment Coordinating Board. Most local and foreign investors with permanent residency employ this option.

This type of Business Company is easy to set up, and it offers limited liability for most foreign entities and local entities as it supports work visas. Features:

  • One local director
  • Two local shareholders
  • A foreign or local commissioner

2. Perseroan Terbatas Penanaman Modal Asing (PT PMA) / Penanaman Modal Asing (PMA)

Perseroan Terbatas Penanaman Modal Asing (PT PMA) / Penanaman Modal Asing (PMA) can be fully or partially foreign-owned. Such a company is established under the stipulated regulations of Foreign Capital Investment Law and approved by the Capital Coordinating Board of Indonesia. PMA companies can be converted into public companies later.

3. Kantor Perwakilan Perusahaan Asing (KPPA)

Kantor Perwakilan Perusahaan Asing is a foreign representative office, and it takes 3-4 working weeks of the registration process. This company registration type is suitable for investors who want to study the Indonesian market for research and business-related development purposes. They serve as the parent company’s buying and selling agent. However, it is restricted to certain business regions such as services, banking, trading, mining, gas, and oil.

4. Representative office for trading (KP3A) 

This is a foreign trade representative office.

5. Nominee Limited Liability Company

When you want to begin operations immediately, you can register a company in Indonesia using an Indonesian nominee. Registering this type of company enables you to bypass some foreign investment restrictions, close deals fast, and obtain contracts.

6. Public company

This type of company is required to adhere to stringent company registration regulations. It has at least 300 shareholders and a paid-up capital of IDR billion. It is a requirement to be listed under the stock exchange.

Want to Start business in Singapore
Want to Start business in Singapore

Procedures to register a company in Indonesia

Business registration and incorporation depends on your company type, and this also determines the registration duration. The following are the procedures for one to register a company in Indonesia:

1. Choose Your Business Structure

Decide which business structure is suitable for you. Then put in place company services such as corporate company secretary, human resources. Working days/hours, ongoing fillings, and bookkeeping.

2. Choose a unique company name

The company name contains at least three different words. You are required to provide three options for your company name in English, Indonesia, or both. These three name options save you the trouble of having to go back and think of a name if the first option has been already in use. Your company can use another name to stand out as a brand.
Register the company’s name at the Ministry of Law and Human Rights. Ensure your company name is approved by the Notary Public as a sign that your business is a legal entity.

3. Have a registered office

As soon as you are confirmed with your business formation, kindly ensure that you have a registered office and a mailing address.

4. Register your company for a business license

The process of getting a business license varies with each business type. You are required to apply for a certificate of business registration and company registration documents from the offices of the Ministry of Trade.

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Post-incorporation procedures

After you have registered your business in Indonesia, there are a couple of things that you need to do:

  1. Obtain your company’s Deed of Establishment (DOE) from the Ministry of Law and Human Rights using a duly filled application form.
    Please ensure that your company documents are notarized. The legalized documents are publicized within 14 days in the State Gazette.
  2. Apply for SIUP (Surat Izin Usaha Perniagaan)
    SIUP a permanent license for trading. You will use the receipt that you had obtained while registering the company name.
  3. Apply for Business Registration Number
    You will be given a Business Registration Number, import license, customs identification, and you will also get registered by the Badan Penyelenggara Jaminan Sosial (BPJS) Ketenagakerjaan and BPJS Kesehantan as part of the package.
  4. Have your company registered with the taxation office for tax compliance purposes.
    You will then be issued with the company’s Tax Identification Number, which will be sent to your company’s address.
    You may also be issued with a domicile certification for taxation purposes, but the domicile is not mandatory. The domicile certificate is issued by the municipality or the building management in the office’s locality. You will also be issued with a registration number Value Added Tax (VAT) collector number.
  5. Obtain work visas
    Both the local and foreign employees in your company will require work visas before working in your company. These visas come in the form of single-entry and multiple-entry business visas.
  6. Set up a corporate bank account
  7. Submit the labor report and other required documents at the Ministry of Labor within 30 days.
    Apply social security programs for workers. This program sensitizes employees on workplace accidents, security after retirement, security for pension, and death.
    Next, be insured for healthcare and employee welfare from the Badan Penyelenggara Jaminan Sosial (BPJS).

Timeline to register a company in Indonesia

No.   Description   Estimate Duration   

(working days)   

1   Approval of company name at the Ministry of Law and Human Rights    
2   Preparation of Article of Association by Notary (Akta)    
3   Obtain Deed of Establishment at the Ministry of Law and Human Rights (SK Kehakiman)    
4   Obtain Domicile Letter at the local government office    
5   Obtain Tax Identification Number (NPWP)    
6   Register Business Indentification Number (NIB = Nomor Induk Berusaha)    
7   Register Business License (Izin Usaha)    

Guide to Company Registration Indonesia FAQs

What is a Deed of Establishment?2020-12-11T15:47:03+08:00

Deed of Establishment is a company registration document obtained from the Ministry of Justice. It contains company details and articles of association. It also contains the company name, location, objective, capital amount, value and classification of company shares, incorporation period, members’ details (number, name & position), procedure, and place for general meeting and distribution procedures for dividends and profits. 

Why does the Indonesian government deem the Negative Investment List to be necessary?2020-12-11T15:46:47+08:00

The Indonesian government introduced the Negative Investment List to prevent the Indonesian market from becoming oversaturated with foreign-owned companies. It also saw the Negative Investment List as a method through which entrepreneurial activity conducted by Indonesians could be encouraged. 

What is the duration of the license for a Representative Officer?2020-12-11T15:46:29+08:00

The representative officer’s license goes for a maximum of five years. The first three initial years can be extended for two more years.  

This is a document needed in the company registration process as stated by the Indonesian law and is obtained from the Ministry of Law and Human Rights. 

What is a Negative Investment list?2020-12-11T15:36:55+08:00

Daftar Negatif Investasi is a list of businesses that foreigners cannot invest in Indonesia. 

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