Investors can start one of these legal entities: Representative Office, Local Company or Foreign Direct Investment Company known as a Limited Liability Company (PT PMA).
A foreigner can start doing business in Indonesia as a local citizen or a foreign investor under a local nominee arrangement as this kind of company allows only 100% local ownership. On the contrary to other legal entities, a local company is not a subject to such strict requirements and limits.
Foreign-owned limited liability company is a legal entity that can be fully owned by foreigners. However, the maximum foreign ownership is determined by the business sector and business activities. The restrictions are listed in a regulation called the Indonesian Negative Investment List.
Commonly considered as a branch of parent company overseas, it can be your first step to enter the Indonesian market. The purpose of this legal entity is marketing activity, preparing the establishment of PT PMA, or conducting market research. No direct selling or generating revenues is allowed.
A summary of business registration services and their timelines can be found here.
Check out our e-Book A comparison of company registration in Indonesia.pdf.
The entire registration and establishment process, including all procedures, takes from 6 to 8 weeks.
| No. | Procedure | Duration (working days) |
| 1 | Approval of company name at the Ministry of Law and Human Rights | 2 |
| 2 | Preparation of Article of Association by Notary | 4 |
| 3 | Obtaining Deed of Establishment at the Ministry of Law and Human Rights | 3 |
| 4 | Receiving Certificate of Domicile at the local government office | 15 |
| 5 | Obtaining Taxpayer registration number | 3 |
| 6 | Receiving NIB (Registration Number) | 3 |
| 7 | Obtaining Business License and/or Commercial License at OSS | 3 |
Cekindo registers several companies every month, and our legal team is ready to answer your questions. Fill in the form below and get the latest information on company registration in Indonesia.
Also, we will be happy to meet you in our offices located in Jakarta, Semarang, and Bali.
Can I set up a locally-owned company as a foreigner?
Can I expand my business to Indonesia without having to establish a company?
Yes, this particularly applies to import and export businesses. Instead of establishing a company, you can use an undername import service, also known as importer of record.
How long does it take to register a company in Indonesia?
It should take between 1 to 1.5 months. For speedy incorporation, you can choose a shelf company (ready-made company) instead.
Can I set up a joint venture company for my business?
Yes. A joint venture company can be in the form of PT PMA (foreign company) or PT (local company). Requirements for each establishment are different.
What is Business Registration Number in Indonesia?
Business Registration Number is proof that a company, regardless of type, is legally registered in Indonesia. A company that does not have a Business Registration Number may have to face dissolution.
Can I set up a company in Indonesia without calling a notary or a lawyer?
Yes. You can do it with the assistance of a professional consultant who usually has in-depth knowledge of company registration process in Indonesia.
Do local and foreign companies pay the same tax?
Yes.
What is the cost for opening a company in Indonesia?
It depends on the company type and area in which you want to open your company. But, the cost starts from USD 1,500 for a local company (PT) in Jakarta area.
