Home Blog How to Start a Business in Bandung? Business Setup | Company Registration How to Start a Business in Bandung? InCorp Editorial Team 4 July 2025 3 minutes reading time Table of Contents How to Start a Business in Bandung Outsource Business Process after Setting Up a Business in Bandung What InCorp Indonesia can Offer As one of the fastest-growing and the most creative cities in Indonesia, Bandung’s future is bright. Entrepreneurs and investors are jumping at the business opportunities in Bandung to participate in the growth story of the capital city of West Java. The reasons Bandung stands out from the crowd as a highly attractive destination for foreign investments and economic prospects are underpinned by its developed facilities and infrastructure, innovative expansions, abundant natural resources, large workforce, technologically-advanced measures, and improved legal and business environment. The top sectors to do business in Bandung that have sparked the most interest of foreign investors are tourism and hospitality, IT and digital industries, and other creative sectors. According to The Investment Coordinating Board (BKPM), in the first quarter of 2019, the total investment of Indonesia hit IDR195 trillion, a 5.3% growth as compared to the same period in 2018. Out of the IDR195 trillion of total investment, approximately IDR 108 trillion (more than 50% of the total investment) came from foreign investments. BKPM also added that the top five investment realisations for both local and foreign investments based on project locations in 2019 were West Java, Central Java, East Java, DKI Jakarta, and Banten. Among these five locations, West Java had the highest investment realization amounted to IDR 37.3 trillion. The majority of the foreign investments were from China, Singapore, Japan, Hong Kong, Taiwan, and Malaysia. Need Market Research? Click Here How to Start a Business in Bandung There is a friendly and favorable business environment in Bandung that has propelled the emergence of startups and foreign companies. To jump into the booming business scene in Bandung, a legal company registration is the first step towards your successful investment. In Bandung, three common legal entities are available for foreigners to choose from based on your business requirements and capabilities. 1. Foreign Company (PT PMA) First and foremost, you can consider a Perseroan Terbatas Penanaman Modal Asing or PT PMA. A PT PMA in Bandung is a foreign-owned company, allowing an investor to own up to 100% foreign shares in the company. However, the percentage of foreign ownership in the PT PMA varies greatly based on the business classification stated in the Indonesian Negative Investment List. 2. Local Company (PT) A local company allows only 100% of local ownership. This means that foreign ownership of even 1% is not allowed. 3. Representative Office Setting up a business in Bandung through the form of a representative office is the fastest and easiest way for most foreigners. There is no capital requirement for this type of legal entity but business activities related to profit generation are forbidden. Outsource Business Process after Setting Up a Business in Bandung After you have incorporated your business in Bandung, you can outsource your business for your peace of mind. Outsourcing your business can bring efficiency and you can focus on bringing your business to succeed in Bandung’s prospering business environment. You will have a new level of agility and access to expertise and technology that can be integrated into your business, enabling you to get ahead of other competitors. What InCorp Indonesia can Offer As a reputable consulting company in Indonesia, InCorp Indonesia offers one-stop solutions for all types of businesses. Ranging from business setup to business process outsourcing, InCorp Indonesia’s services can be customised to satisfy your unique business requirements. Be in touch with InCorp Indonesia for a free and no-obligation discussion by filling in the form below. Read Full Bio Verified by Ales Cina Consulting Manager at InCorp Indonesia Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights. Frequently Asked Questions Is it required to hire Indonesian staff in the PMA company? In Indonesia, the necessity of hiring Indonesian employees by foreign companies typically arises from commercial requirements, regulatory mandates in specific sectors like construction or shipping, or as part of employing foreigners to fulfill knowledge transfer obligations. Does a PMA company in Indonesia have to meet certain criteria before it can distribute dividends? Dividends can be distributed from company net profits after allocating reserves, depending on a positive profit balance. Approval from the general meeting of shareholders is necessary. Interim dividends may be distributed if specific requirements are met. Can Investors 100% own a PT PMA Company? According to Presidential Regulation No. 10/2021 and the amended version, all businesses are open for domestic and foreign investment with these limitations and classifications: Eight businesses are closed to foreign investment and may be operated by the central government. Designated business sectors or joint ventures with cooperatives (koperasi) and micro, small, and medium enterprises Open businesses are subject to specific conditions, such as those that are exclusively available to 100% local investors, those with restricted foreign shareholding, and investments requiring special licenses Certain sectors are closed to foreign investment, including narcotics cultivation, gambling, and environmental conservation activities. What is the minimum shareholder requirement to incorporate a PT? The minimum number of shareholders to incorporate a PT is two Get in touch with us. Lead Form Notify Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business 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. More on Business Setup Renewable Energy Investment in The Manufacturing Sector Read more Why Indonesia is an Ideal Stage for UAE’s Investors for Doing Business Read more 5 Ways To Integrate ESG Investing into Business Growth Read more