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Indonesia Company Registration

One-stop enterprise service platform, from company registration to tax compliance, the whole process for your escort

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What are the advantages of registering an Indonesian company?

Huge demographic dividend and market potential

Indonesia is the fourth most populous country in the world, with a population of more than 280 million people, and has a huge consumer market with vast demand for both consumer and industrial products. At the same time, Indonesia has a large number of young working population, the demographic dividend is very prominent.
Low-cost operation

As an emerging economy, Indonesia has higher human resource costs compared to other developed markets. Moreover, the quality of labor force is constantly improving, which can effectively reduce labor costs and improve productivity and profit margins.
Strategic Location Advantage

Located in Southeast Asia, Indonesia is a hub for maritime transportation. Connected to the Pacific Ocean and the Indian Ocean, many international shipping routes pass through, which is conducive to trade and transportation, and convenient for the procurement of raw materials and the export of products, making it an ideal base for expanding into Southeast Asia and even the global market.
Rapid economic growth

In recent years, Indonesia's economy has been growing steadily at an average annual rate of approximately 5%, making it one of the faster growing economies in the world and providing a favorable macroeconomic environment for investors.
Policy support

The Indonesian government has introduced a series of policies to attract foreign investment, simplifying the approval of company registration, relaxing the registered capital requirements, flexible capital contribution methods, and tax exemptions and reductions for specific industries and regions.

What are the requirements for registering an Indonesian company

Scope of business

Comply with the business scope requirements for full foreign company registration.
registered capital

The minimum registered capital is Rp 10 billion (approximately Rp 4.5 million), which is paid in without verification, but is required to be paid in prior to the year-end financial declaration of the following year. For the general industry, the paid-up foreign capital is 25% of the minimum investment value, i.e., the actual amount of capital/assets required by the investor to conduct business in Indonesia should be at least Rp 2.5 billion.
registered address

A local address in Indonesia is required (we can provide a dependent address).
stockholder

At least two natural or legal persons. If the shareholders are natural persons from mainland China, they need to have overseas accounts; if they are mainland companies or mainland-controlled overseas companies, they need to do ODI overseas investment filing.
board member

At least one director (regardless of nationality, Chinese director must apply for a work visa and Indonesian tax card), shareholders can also be directors. It is recommended to have an Indonesian director to facilitate the account opening and annual report.
supervisor

At least one supervisor. (No restriction on nationality; a director cannot be a supervisor.)

What are the types of Indonesian companies

Local companies (PT PMDN)

Foreign Limited Liability Company (PT PMA)

Representative Office (KPPA)

Local companies (PT PMDN)

100% Local ownership, with the help of local directors, to conduct business as a local or foreign investor. Requires at least two shareholders (individuals or companies), but must be local Indonesians or local companies. Relative to foreign entities, not subject to strict restrictions and requirements, but cannot own equity in person.

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Foreign Limited Liability Company (PT PMA)

Applicability Foreigners wishing to have ownership of 100% companies need at least two shareholders (individuals or corporations) with the same powers and responsibilities as a local company, are able to participate in tenders, and can apply for a business license and importation, as well as product registration. Foreign employees can apply for a KITAS (Indonesian limited residence permit, or temporary residence permit valid for six months to one year) or a work visa. However, ownership is restricted by relevant provisions in Indonesia's negative investment list.

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Representative Office (KPPA)

Applicable to branches of overseas parent companies, the first step for investors who want to enter the local market. Setting up for the purpose of marketing activities Preparing to set up a PT PMA or conducting market research. Ideal for foreigners to test the local market. Can focus on market research to assist in deploying next steps. This method has no minimum capital requirement and does not require shareholders or directors, let alone supervisors.

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Basic information to be prepared

1. Name of the company

It is advisable to provide three names to avoid renaming
2. Basic information on shareholders and directors

If the individual is the shareholder, the Indonesian shareholder needs to provide ID card, tax card, e-mail address, and cell phone number; the foreign shareholder needs to provide a scanned copy of passport, e-mail address, and cell phone number. If a foreign company is the shareholder: articles of incorporation, business license, legal documents proving the chairman of the foreign company, scanned copy of the passport of the chairman of the foreign company.
3. Registered capital

Registered capital, paid-up capital, share ratio
4. Office address

Office address lease agreement and contact information

Registration time: approximately 14 working days

1

Step 1

Advance company name approval

First, an application for pre-approval of company name needs to be submitted to the competent authority in Indonesia. This step is to ensure the uniqueness and legality of the company name.
2

Step 2

Prepare and submit registration documents

After the company name has been approved, detailed incorporation documents need to be prepared, including the articles of incorporation, shareholders' agreement, and identifying information of directors and supervisors. Submit all documents to the Indonesian Investment Coordinating Board (BKPM) for approval.
3

Step 3

Application for Foreign Investment License

If the company involves foreign investment, it needs to apply for a foreign investment license at BKPM. This step is to ensure that the company complies with Indonesia's foreign investment laws and regulations.
4

Step 4

Obtaining a Certificate of Incorporation (NIB)

After all documents and licenses are approved, BKPM will issue a Certificate of Incorporation (NIB), which is an important document for a company to legally operate in Indonesia.
5

Step 5

Tax registration and commercial licenses

After receiving the NIB, the company will also need to register for tax purposes with the tax office and apply for the necessary business licenses and special industry permits.
6

Step 6

Social security and labor registration

Once a company is established, it is also required to register accordingly with the Indonesian Social Security Agency (BPJS) and the Labor Agency to obtain social security and labor contracts for its employees.
7

Step 7

Opening of public bank accounts

After all the documents are done, you can open a public bank account (here you can selectively open, do not open an account is not affected by the operation, according to individual needs)

Q&A Frequently Asked Questions

1. What types of companies can foreign investors register in Indonesia?

According to Indonesian company law, foreigners can register PT PMA limited liability companies and offices, and usually register limited liability companies (PT PMA).

2. What is the minimum requirement for registered capital?

Indonesia's Investment Coordinating Board (BKPM) requires a minimum investment plan of Rp 10 billion (about Rp 4.5 million) for foreign companies without a capital verification component.

3. What is the company name going to be, how many words, should I add the industry?

There is no fixed requirement regarding the length of the name and whether or not to add the industry. It can be decided based on your preference and company positioning. Bahasa Indonesia, English or Pinyin is acceptable. At least 3 Bahasa Indonesia names are provided to choose from and each name consists of at least 3 words.

More products and businesses are being updated, for more information please Contact Customer Service

More products and businesses are being updated, for more information please Contact Customer Service

What are the advantages of registering an Indonesian company?

What are the requirements for registering an Indonesian company

Basic information to be prepared

Registration time: approximately 14 working days

1. What types of companies can foreign investors register in Indonesia?

2. What is the minimum requirement for registered capital?

3. What is the company name going to be, how many words, should I add the industry?