Your Step-by-Step Guide to Business Registration in Indonesia

Registering a business in Indonesia may initially seem complex, but the process can be efficient with the right guidance and knowledge of local regulations. Partnering with an experienced consulting firm can simplify business registration in Indonesia and ease the process. This article will guide you through the process and requirements in more detail.

Step-by-Step Guide to Business Registration in Indonesia

The process of registering a business in Indonesia can be done in three simple steps through an experienced consulting firm:

• Deed of Establishment (Akta Perusahaan)
• Company Tax Number (NPWP)
• Business Registration Number (NIB)

The process can take anywhere from one to three months, depending on your business location, sector, and the completeness of your documents. The procedure is similar for both local companies (PT) and foreign-owned companies (PT PMA), though requirements differ.

Step 1: Get a Deed of Establishment

• Think of a Company Name: Must have at least three unique words as required by Indonesian law.
• Draft Articles of Association: Prepared by a notary, outlining your company’s name, address, activities, capital, shareholding structure, board of directors, and profit distribution rules.
• Submit and Formalize: The notary files your Deed of Establishment with the Ministry of Law and Human Rights for official recognition.

Once approved, your business becomes a legally recognized entity in Indonesia.

Step 2: Acquire a Company Tax Number (NPWP)

After obtaining the Deed of Establishment, apply for your company tax number (NPWP) at the local tax office. The NPWP will be sent to your registered business address.

• You will also receive a domicile letter in most regions after registering your NPWP.
• In Jakarta, however, domicile letters are no longer required under the new regulation passed in May 2019.

Step 3: Obtain a Business Registration Number (NIB)

Indonesia now uses the Online Single Submission (OSS) system for company registration. Through OSS, you can obtain your:

• Business Identification Number (NIB)
• Import license (API)
• Customs identification number (NIK)
• Automatic registration with BPJS (Health and Social Security System)

This system streamlines multiple licensing processes into one online platform, saving time and reducing paperwork.

READ MORE:

• How to Easily Access OSS Login System in Indonesia

2025 Updates to Indonesia’s Business Registration Procedure

Recent 2025 updates make the business registration process in Indonesia smoother, including:

• Faster PT PMA Approvals: Typically 2 to 6 weeks, depending on business risk level. Higher-risk sectors may face stricter requirements.
• Paid-Up Capital for PT PMA: Generally IDR 10 billion. Funds must be placed in a blocked account during NIB processing, though requirements may vary by sector.
• Domicile Letter: Still optional in many regions, but banks or local authorities may occasionally request it.
• Risk-Based Licensing: Business licensing now depends on your sector’s risk classification, with low-risk sectors enjoying faster approvals.

How InCorp Can Help Register Your Business in Indonesia

While the government has simplified the business registration process in Indonesia, navigating regulations, compliance requirements, and changing laws can still be challenging.

At InCorp Indonesia (an Ascentium Company), we specialize in helping both local entrepreneurs and foreign investors establish companies efficiently. Our services cover every process step, from drafting documents to securing licenses.

We have offices in Jakarta, Bali, Semarang, Batam, and Surabaya, and we are ready to assist you in starting your business journey. Fill out the form below and let our consultants help you confidently set up your company.

Frequently Asked Questions