company registration semarang

Should You Establish a PT, a PT PMA or a Representative Office in Semarang?

  • InCorp Editorial Team
  • 10 September 2024
  • 9 minutes reading time

Semarang is strategically nestled in the heart of Java, Indonesia, making it an ideal destination for business investors seeking an establishment: Company Registration Semarang.

Semarang’s advantageous location provides easy access to neighboring economic powerhouses like Singapore, fostering cross-border trade and investment opportunities.

With its growing infrastructure, competitive operating costs, and expanding industrial sector, Semarang offers a unique advantage for those doing business in Indonesia.

Company Registration Semarang: Why Should You Establish One?

Semarang is a critical entry point to major Indonesian cities like Jakarta and Surabaya. With approximately 70% of its population under the age of 39, totaling 122 million potential workers, Indonesia’s demographic landscape enables Semarang to provide cost-effective business setup and operations compared to other Southeast Asian cities.

Consequently, the city has witnessed rapid growth in company registrations, with 31% of the country’s startups choosing Semarang as their base. Additionally, Semarang boasts a unique, serene environment that distinguishes it from other urban centers.

Company Registration Semarang: Steps to Establishing One

You must register your company to start a business in Semarang. This applies to both local entrepreneurs and international investors.

The first step is to choose the best business structure for you. You can pick a Limited Liability Company (PT), a Representative Office, or a Joint Venture. Each option has specific conditions and benefits, so choosing carefully based on your business goals is essential.

The best type of legal entity for foreign investors is the PT PMA, which offers investors up to 100% foreign ownership with permission to hire foreign employees. If unsure, you are welcome to consult our professionals at InCorp.

Semarang offers several types of legal entities for your company registration. Each comes with merits and demerits, depending on your business needs. These include:

  1. Foreign-owned Company (PT PMA)
  2. Local Company (PT) known as Perseroan Terbatan (PT)
  3. Representative Office
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Foreign-Owned Company

Also known as Penanaman Modal Asing (PMA), this entity allows foreigners to conduct commercial activities in Semarang and Indonesia under Indonesian Company Law. The percentage of foreign ownership is determined by the Negative Investment List, a guideline provided by the Indonesia Investment Coordinating Board (BKPM).

Key characteristics include:

  • A minimum investment plan of IDR 10 billion.
  • A minimum paid-up capital of IDR 10 billion.
  • The possibility of 100% foreign ownership.
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Local Company (PT)

By law, incorporation is reserved for Indonesian citizens with 100% ownership. Therefore, foreign investors won’t be granted incorporation. The minimum capital investment varies based on the size of the company.

  • A micro-enterprise: less than IDR 1 billion
  • A small enterprise: IDR 1 – 5 billion
  • A medium enterprise: IDR 5-10 billion
  • A large enterprise: more than IDR 10 billion

Representative Office (KPPA)

A foreign parent company often establishes a KPPA to oversee its business in Indonesia or when it is preparing to set up a PT PMA in Semarang. A KPPA can do limited activities, and income-related and sales transactions are prohibited.

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How to Register a Company in Semarang

Whether you’re an Indigenous entrepreneur or an international investor, thoroughly understanding these requirements is essential for registering your company in Semarang.

Below, we outline the critical requirements for establishing a company in Semarang:

RequirementsDescriptions
Company NamingChoose an exclusive and available name for your enterprise that does not infringe upon existing trademarks. Ensure that the name complies with Indonesian language and character requirements.
Document CompilationAssemble the requisite documents according to your selected business structure. Commonly required documents encompass your company’s Articles of Association, identification papers, a comprehensive business plan, and evidence of initial capital.
Registration ProcessPresent your documentation to the Semarang branch of the Indonesia Investment Coordinating Board (BKPM) or the Regional Office of the Ministry of Law and Human Rights, pay the registration fee, and await your company’s approval, which can take a few weeks to several months, depending on your business complexity.
Acquisition of Business LicensesUpon successful registration, secure the obligatory business licenses and permits. These may encompass a business license (SIUP), a taxpayer registration number (NPWP), and a company registration certificate (TDP).
Social Security EnrollmentIf applicable, enroll your workforce in social security programs like BPJS Ketenagakerjaan and BPJS Kesehatan.
Bank Account OpeningConclude the process by establishing a corporate bank account in Semarang to oversee your business finances.

With the rise of online company registration in Semarang, the process has become more streamlined and accessible, allowing business owners to efficiently manage their registration remotely.

However, please remember that the specific requirements and procedures may diverge based on your business category and Semarang’s location.

It is highly advisable to seek guidance from a local legal or business consultant to ensure a seamless registration experience for your Semarang-based company.

Company Registration Semarang: What Documents are Needed?

Registering a company in Semarang necessitates submitting various documents to the relevant authorities. These documents are crucial as they substantiate the legitimacy of your business and its adherence to Indonesian regulatory standards.

Below, we provide a list of the pivotal documents indispensable for the registration of a company in Semarang:

DocumentsDescriptions
Articles of Association (Akta Pendirian Perseroan Terbatas)A notarized document outlining the company’s name, objectives, organizational structure, and capital.
Identification DocumentsCopies of identification documents for all shareholders and directors, encompassing passports for foreign individuals and national IDs for Indonesian nationals.
Taxpayer Registration Number (NPWP)Attain an NPWP for your company and ensure all shareholders and directors possess individual NPWP numbers.
Business PlanA comprehensive business plan delineates your company’s objectives, activities, financial projections, and market analysis.
Proof of CapitalFurnish substantiation of the initial capital injection, including bank statements or correspondence from financial institutions.
Business License (SIUP)A permit issued by the local government authorities or the BKPM authorizing your company to operate within Semarang.
Company Registration Certificate (TDP)This certificate, conferred by the Ministry of Industry and Trade, attests to your company’s legal existence.
Location VerificationDocuments confirming your right to utilize your company’s physical premises, such as a lease agreement or property deed.

It is crucial to remember that the precise document requirements can fluctuate depending on your selected business framework and the specific location within Semarang.

Seeking guidance from a local business specialist or legal consultant is advisable to ensure you possess all the requisite documents for a successful company registration in Semarang.

Company Registration Semarang: The Timeline

One of the most common questions about registering a company in Semarang is, “How long does it take?” The timeframe for company registration can vary depending on several factors, including the type of business structure you choose and the complexity of your enterprise.

Here’s a general overview of the typical timeframe involved in registering a company in Semarang:

Preparation Phase

Before officially beginning the registration process, you must prepare all the necessary documents and meet the requirements. This phase can vary depending on how quickly you can gather all the required paperwork, but it’s essential to have everything in order before proceeding.

Submission of Documents

Once you’ve gathered all the required documents, you’ll submit them to the relevant authorities. This is usually done in Semarang’s Semarang branch of the Indonesia Investment Coordinating Board (BKPM) or the Regional Office of the Ministry of Law and Human Rights.

The submission process typically takes less than 30 minutes, but it depends on the queue and the efficiency of the local offices.

Processing Time

The processing time for company registration can range from a few weeks to a few months. This timeframe can be affected by the complexity of your business structure, the workload of the local authorities, and any potential delays in document verification.

Approval 

Once your company’s registration is approved, you’ll receive the necessary licenses and certificates. This is a significant milestone in the registration process, as it signals that your company is officially recognized and legal to operate in Semarang.

Post-Approval Steps

After obtaining the necessary approvals and licenses, you may need to complete additional steps, such as opening a corporate bank account, registering for social security programs, and fulfilling industry-specific requirements.

Ongoing Compliance

It’s important to note that after registering your company, you must maintain ongoing compliance with Indonesian regulations, including tax reporting and annual reporting requirements.

The Benefits of Hiring Consultants for Your Business

Hiring a business consultant offers numerous benefits, from improving profitability to providing industry expertise and fresh perspectives.

As an InCorp client, you’ll benefit from our local legal specialists and international consultants, who will provide specialized assistance for your company registration in Semarang.

Here’s why choosing InCorp Indonesia is the best decision for your business:

  • Cost Savings and Profitability: Our consultants help reduce costs and improve profits by streamlining operations. We offer financial planning, cost-saving strategies, and boost efficiency so you can focus on business growth.
  • Industry Expertise: Our consultants specialize in specific industries, offering expert knowledge and staying up-to-date with the latest trends. This helps your business stay competitive and adopt new strategies quickly.
  • Fresh Perspective: We objectively identify problems you might miss and offer solutions to help your business grow.
  • Low Risk, High Reward: We offer flexibility. You can hire our consultants for specific tasks without long-term commitments. We deliver quick results with minimal risk.
  • Networking Opportunities: We can connect you with industry experts and key contacts, helping you expand your professional network and grow your business.
  • New Ideas: We bring creative solutions and fresh insights, offering innovative strategies that your internal team might not consider.

Guide to Doing Business in Semarang​

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Register Your Company in Semarang with InCorp

Let us guide you through a seamless company registration process in Semarang. Our expert consultants provide comprehensive services, including:

  • Company Registration: We ensure fast and efficient company setup, handling all legal requirements.
  • Business License: We’ve got you covered, from applying to securing the proper business licenses.
  • Legal Compliance: Stay fully compliant with Indonesian regulations with our local expertise.

Start your business journey in Semarang by filling out the form below.

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.

Get in touch with us.

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Frequent Asked Questions

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.