Company Registration Consultation in Indonesia

Register your company as a Foreign-Owned Company (PT PMA) or a Representative Office to start your business in Indonesia. Each option has benefits, so choose the one that suits your business goals. Get expert guidance through our consultation service.
Table of Content

Types of Legal Entities for Foreign Investors in Indonesia

PT PMA (Foreign-owned Company)

Foreign investors can set up a PT PMA to control their business in Indonesia completely. It’s the only legal entity that allows foreign ownership up to 100%. However, regulations and share ownership limits vary by sector and are determined by the Positive Investment List. Our expert consultants will guide you to understand the complex nature of company registration in Indonesia.

General Representative Office (KPPA)

Representative Office is a type of company registration in Indonesia suitable for foreign investors at an early expansion stage. This legal establishment allows testing of the Indonesian market before establishing commercial operations and works best for non-sales activities. We can give you a thorough consultation on navigating your business under ROs.

Representative Office for Business Trading (KP3A)

KP3A is a representative office that is established specifically for business trading. Both general and trading RO’s are prohibited from conducting business activities that generate financial income. However, a trading RO may be established in any part of Indonesia, whereas a general RO is not able to do so.

Representative Office for Construction Company (BUJKA)

Similar to KP3A, a BUJKA is a representative office specifically established for foreign construction companies. A BUJKA may engage in large-scale construction projects, but only under a joint operation with a local company known as Local PT. Despite its limitations, a BUJKA is still a good start for foreign construction companies to set their footprint in Indonesia, as they are allowed to collaborate on building projects without obtaining a construction license (SIUJK).

The Process of Setting Up A Company in Indonesia

Internal Process

Consultation

Consult with our experts to discuss your expansion goals and learn how to register your company in Indonesia.

Collecting Required Documents

Provide us with all the documents required for company establishment in the company registration Indonesia process.

Document Review

Our consultants ensure your submitted documents are aligned with the latest company registration Indonesia regulations.

Drafting

We will draft your application letter to related government bodies for the company registration Indonesia process.

Documents Submission

We file all your documents to the related government bodies on your behalf for your company registration in Indonesia.

External Process

Registration of Indonesian Tax ID (NPWP)

An NPWP is required to secure other business licenses, open a bank account, and fulfilling tax obligations.

Obtain Indonesian Business Identification Number (NIB)

A NIB is required for a company registration Indonesia to conduct immediate business operations.

Deed of Incorporation (For PT PMA)

A Notary should draft and legalized your Deed of Incorporation.

Approval of Legal Entity (For PT PMA)

After submission of Deed of Incorporation by the notary, the Ministry of Law and Human Rights will give approval.

Securing Other Licenses (For PT PMA)

Some sectors and business activities require more specific business licenses and permits for their company registration Indonesia process. This process can from 7 to 20 days, depending on your business sector.

*The estimated time after all the required documents are deemed eligible for submission to the related government’s bodies.

Comparisons of Company Establishment Options for Foreign Investors in Indonesia

  • PT PMA

  • Nature
    • Allows profit-generating business activities
    • Allows up to 100% foreign ownership
    • Ideal for business sectors that are open for foreign investment
    Structure
    • Minimum two shareholders (corporate/individual)
    • Minimum one local director
    • Must have at least one commissioner (can be a foreigner with a valid work permit)
    Capitalisation
    • Minimum IDR 10 billion of investment
    • At least IDR 10 billion should be provided as a paid-up capital
    Benefits
    • Full control of business
    • Eligible to sponsor work and stay permit for foreign employee
  • KPPA

  • Nature
    • Not allowed to generate financial income
    • Allows up to 100% foreign ownership
    • Ideal for testing the waters before setting up a fully-fledged company
    • Works best for non-sales activities
    Structure
    • No shareholder or director required
    • One chief executive is sufficient
    Capitalisation
    • No capital is required
    Benefits
    • Low incorporation cost
    • Eligible to sponsor work and stay permit for foreign employees
  • KP3A

  • Nature
    • Not allowed to perform any sales and purchase activities
    • Allows up to 100% foreign ownership
    • Ideal for liaising, promotional, and market survey activities
    Structure
    • No shareholder or director required
    • One chief executive is sufficient
    Capitalisation
    • No capital is required
    Benefits
    • Low incorporation cost
    • Eligible to sponsor work and stay permit for foreign employee
    • Can open a branch office in any part of Indonesia
  • BUJKA

  • Nature
    • Permitted to engage in large-scale construction projects within a joint operation with a Local PT
    • Best suited for the larger global construction companies
    Structure
    • No local shareholders are required
    Capitalisation
    • No capital is required
    Benefits
    • Low incorporation cost
    • Allowed to work on a construction project in a joint operation with a Local PT without acquiring a construction license (SIUJK)
    • Eligible to sponsor work and stay permit for foreign employee
Nature
  • Allows profit-generating business activities
  • Allows up to 100% foreign ownership
  • Ideal for business sectors that are open for foreign investment
Structure
  • Minimum two shareholders (corporate/individual)
  • Minimum one local director
  • Must have at least one commissioner (can be a foreigner with a valid work permit)
Capitalisation
  • Minimum IDR 10 billion of investment
  • At least IDR 10 billion should be provided as a paid-up capital
Benefits
  • Full control of business
  • Eligible to sponsor work and stay permit for foreign employee
Nature
  • Not allowed to generate financial income
  • Allows up to 100% foreign ownership
  • Ideal for testing the waters before setting up a fully-fledged company
  • Works best for non-sales activities
Structure
  • No shareholder or director required
  • One chief executive is sufficient
Capitalisation
  • No capital is required
Benefits
  • Low incorporation cost
  • Eligible to sponsor work and stay permit for foreign employees
Nature
  • Not allowed to perform any sales and purchase activities
  • Allows up to 100% foreign ownership
  • Ideal for liaising, promotional, and market survey activities
Structure
  • No shareholder or director required
  • One chief executive is sufficient
Capitalisation
  • No capital is required
Benefits
  • Low incorporation cost
  • Eligible to sponsor work and stay permit for foreign employee
  • Can open a branch office in any part of Indonesia
Nature
  • Permitted to engage in large-scale construction projects within a joint operation with a Local PT
  • Best suited for the larger global construction companies
Structure
  • No local shareholders are required
Capitalisation
  • No capital is required
Benefits
  • Low incorporation cost
  • Allowed to work on a construction project in a joint operation with a Local PT without acquiring a construction license (SIUJK)
  • Eligible to sponsor work and stay permit for foreign employee

Pandu Biasramadhan

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.

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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.

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