How many incorporation types exist in Indonesia?

  • InCorp Editorial Team
  • 16 June 2025
  • 1 minutes reading time

In Indonesia, there are three company types that you can establish based on your business nature, requirements, and preferences.

  • Local Company (PT): 100% local ownership.
  • Foreign Company (PT PMA): can be entirely owned by foreigners; however, restrictions in business sectors apply
  • Representative Office: a branch of the parent company overseas whose purpose is to conduct marketing-related activities without generating income or profits

Verified by

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Frequently Asked Questions

    It all depends on your business’s purpose and nature. Our consultants will help you to clear out the matters.

    Establishing a PMA Company in Indonesia typically takes around two weeks after completing document requirements. Following establishment, additional steps such as obtaining licenses and registering for Tax ID vary based on business type. Last, some licensing processes may take time, necessitating thorough planning and preliminary assessments of the business plan for a smoother process.

    You can find the difference below:

    • PT: limited liability company (shareholders are not legally liable for company liabilities)
    • CV: a proprietary company where liability falls on the shareholders

    To provide you with accurate pricing information for our HR outsourcing services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, please get in touch with our consultants.

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Disclaimer

The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.