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:
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 without incorporating a brand new company, consider a shelf company instead.
In this article, we will guide you through the process and requirements in more detail.
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:
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.
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.
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:
Understand the major changes of OSS newest version, version 1.1
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.