• Indonesian

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

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 on 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.

If you are looking to penetrate the Indonesian market fast, consider having a shelf company instead.

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 Cekindo 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 Cekindo, 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 and Semarang.

Contact Our Consultants