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

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

  • InCorp Editorial Team
  • 8 January 2024
  • 4 minute reading time

Registering a business in Indonesia can be less complex if you are familiar with the local business registration regulations.

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

  • You will need to initially get the Akta Perusahan or Deed of Establishment.
  • Then, you will need to start acquiring your Nomor Pokok Wajib Pajak (NPWP) or tax ID
  • And finally, you will have to obtain your business registration number.

In Indonesia, the process of registering a company can take as fast as one month but it can also take as long as three months, depending on the location of your business registration and the completeness of your documents.

This summarised process is more or less the same for both local company (PT) and foreign company’s (PT PMA) business registration, with differences in their requirements.

In this article, we will guide you through the process and requirements in more detail.

Step-by-Step Guide to Business Registration in Indonesia

1. Get a Deed of Establishment

Think of a Company Name

In accordance with Indonesia Law, a legal company name in Indonesia must contain a minimum of three different words. This official name is only for the legal procedure but you are allowed to have different names for your products or brands.

Draft Articles of Association

After you have chosen a name for your company, a registered notary is required in order to write your company’s articles of association. These articles of association include the following details:

  • Name and location of your company
  • Capital amount details
  • Objective and business activity of your company
  • Company shares value and amount
  • Shareholder meetings’ locations and methods
  • BOD and BOC’s appointment, titles, amount of members, and discharge procedures
  • Procedures of company’s profit and dividends use and distribution

business registration indonesia guide

Submit the Deed of Establishment

You and your shareholders must sign the Deed of Establishment while a notary is present. A power of attorney is required as well if one or more of the shareholders are unable to do so.

Then, the notary will submit the Articles of Association. The Indonesian Ministry of Justice and Human Rights is authority to receive and approve the submission. The Ministry will then proceed with the Deed of Establishment issuance, indicating that your business is officially registered as a legal entity in Indonesia.

Your company’s Deed of Establishment and Article of Association are the two most important documents for you to apply for a business registration number and other related licenses.

2. Acquire a Company Tax Number

The next step after the Deed of Establishment issuance is the application for a company tax number at your local office in Indonesia. Your company tax number will be sent to you to your company’s address.

You will then receive a domicile letter after the receipt of your company tax ID, except in Jakarta. Domicile letters for new companies are no longer necessary in Jakarta with the new law passed in May 2019.

3. Obtain a Business Registration Number

With the newly implemented Online Single Submission (OSS) system in Indonesia, the process is made simple and you can acquire your business registration number and other relevant documents at the same time.

The following are the documents you get through OSS:

  • Business registry number
  • Import license
  • Customs identification number
  • Automatic registration at the Health and Social Security System

Understand the major changes of OSS newest version, version 1.1

How InCorp can Help Register Your Business in Indonesia

The process of business registration has been made much more convenient to encourage foreign investments in Indonesia. However, a proper understanding of the changing laws and market environment are still critical for the success of your business setup. A professional consultant will be of great help to help you navigate the ever-changing legislations as well.

Connect with InCorp, we have a team of experienced consultants ready to assist you. Start by filling in the form below. You are also welcome to drop by one of our offices available in Jakarta, Bali, Semarang, Batam, Surabaya, and more.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

Lead Form

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.

Frequent Asked Questions

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.

It should take between 30 to 45 days.