Company Registration in Indonesia

The process of company registration in Indonesia can be done it three ways: A Representative Office, Local Company or Foreign Direct Investment as a Limited Liability Company (in Indonesia called PT PMA)

 


Local Company (PT)

You can officially start doing business in Indonesia and have the same rights and responsibilities. Check also Local nominee company – it can be safe way for you. Or Shelf company can be best fit for you.


Foreign Owned Company (PMA)

The PMA company registration process in Indonesia is very precise and can be demanding for new business.


Representative Office

The economy and the population make Indonesia a very attractive market to set up a company.

 

For complete detail overview of our services for every company you can check here


Advantages of company registration for Indonesian Limited Liability Company (PT PMA)

  1. You can officially start doing business in Indonesia and have the same rights and responsibilities as any other local company.
  2. Your company can join and participate in all tenders in Indonesia.
  3. You can apply for import and other business licenses, apply for product registration under your company and thus have better conditions for importing goods.
  4. You and all your foreign employees can apply for a work visa (called KITAS) based on name of your company.
  5. Your foreign clients and visitors can directly obtain a business visa sponsored by your company.
 

Characteristics of an Indonesian Limited Liability Company (PT PMA)

  • Can be owned up to 100% by foreigners. Maximum foreign ownership depends upon the business classification mentioned in the regulating document called the Negative Investment List. Foreign ownership can be from 0 to 100% depending upon the business industry. Download the complete negative list here.
  • A minimum 2 shareholders. Shareholders can be individuals or companies.
  • A required Investment plan at least US$1 million. The Indonesian institution called Indonesian Investment Coordinating Board (BKPM) requires foreign investors to present an investment plan for a minimum of US$1 million (equivalent for IDR 10 billion), of which 25% needs to be paid up capital.  Foreign companies, however, cannot open a bank account before the incorporation process is completed. You are only required to submit a notary statement letter that this amount will be transferred once the incorporation is complete. However based on the new regulation all new foreign company needs to have financial audit before they can apply for a permanent business license and also other connected licenses (import license, etc.) which are critical for a lot of companies. This new regulation wants to ensure that all foreign investors realized their an investment plan and not only submitted an investment plan to Investment Coordinating Board (BKPM) just only on paper, which often happened in the past.
  • Licensing requirements for your selected industry. Some of business activities such as the operation of restaurants or hotels require special licenses.
  • Indonesian laws. Foreign entities and entrepreneurs intending to establish a form of local company owned by foreign investors shall go through the procedures according to Indonesian laws and regulations based on Law No. 25 / 2007 regarding Capital Investment and Law No. 40 / 2007 regarding the Limited Liability Company.

Our legal team is ready to assist you in all processes of company formation in Indonesia, you can check our page about step-by-step company formation.


The process of company registration for an Indonesian Limited Liability Company (PT PMA)

The entire registration and establishment process, including all procedures, takes from 6 to 8 weeks.

No. Procedure Duration
(working days)
1 Approval of company name at the Ministry of Law and Human Rights 2
2 Approval of Principal License at the Indonesian Investment Coordinating Board (BKPM) 15
3 Preparation of Article of Association by Notary 4
4 Obtain Deed of Establishment at the Ministry of Law and Human Rights 3
5 Obtain Certificate of Domicile at the local government office 15
6 Obtain Tax payer registration number 3
7 Obtain Company Registration Certificate at the local government 10
 

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Cekindo registers several company every month, and our legal team is ready to assist you.

Feel free to contact us for a free quotation on pursuing company registration in Indonesia.

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