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Registering Local PT Company in Indonesia

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Local Company (PT) is the most common legal entity in Indonesia

Even though a local company is intended for Indonesian citizens only, there are some circumstances under which a foreign investor can incorporate a local company in Indonesia as well.

Benefits of a Local Company in Indonesia for Foreigners

benefits-of-local-ptEven though there are other legal entities particularly designed for foreigners — a limited liability foreign-owned company and representative office — starting a local company might bring more benefits to some foreign entrepreneurs.

Not Restricted from Some Business Fields

The Negative Investment List is a document that regulates foreign ownership of businesses based on business sectors they operate in. Thus, some business activities are fully closed to non-domestic investors, and some are partially limited. On the other hand, a local company is not a subject to this regulation, and it might be the only choice how to start a business in Indonesia in your field.

Lower Incorporation Costs

In comparison with a foreign-owned company, the paid-in capital of a local company is much lower. In general, it ranges from IDR 50,000,000 up to more than IDR 10,000,000,000. The amount of the capital defines the size of the company, which further determines whether a company is eligible to sponsor a work permit for a foreign worker (and how many).

  • Small : IDR 50,000,000 – 500,000,000
  • Medium : IDR 500,000,001 – 10,000,000,000
  • Large : above IDR 10,000,000,001

Starting a Local Company with Cekindo

Local Nominee Services

Foreigners can register a local company through a local nominee agreement. This means signing a contract with a local shareholder — Cekindo — who will represent partial ownership of your business. However, it will always be you, a foreign entrepreneur, who in fact gets full ownership of your business and Cekindo will not intervene in your business by any means.

Shelf Company

A shelf company, known as a ready-made company, is an instant market entry solution. Cekindo registers several local companies every year, keeps their record clean and offers them to our clients. Thus, entrepreneurs can start operating their Indonesian company one week after the purchase of a shelf company.

If you are not sure what type of company which is suitable for your business, contact us via the form below or visit us in one of our offices located in Jakarta, Semarang and Bali. Cekindo will assist you to establish your local company in Indonesia based on your needs.

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Selected Testimonials

  • logo-PT-Asia-Victory

    Prior to choosing Cekindo as our business partner in Indonesia, we interviewed and compared several companies. Finally, we chose to cooperate with Cekindo because of its professionalism and quality. Cekindo has assisted us in many ways, from company certification application to KITAS application and financial statement compliance to the fulfillment of other tax obligations in Indonesia. We appreciate the team’s fast response and professionalism in preparing the financial statements, among others.

    Doris Chen
    PT. Asia Victory and PT. Bigger One
  • logo Toaster

    When I joined Toaster, it was already working with Cekindo. But it’s quick to see why Toaster chose Cekindo. Cekindo has been very helpful throughout. Toaster Headquarters is based in London. Indonesian tax laws are not our specialty. Cekindo’s team has helped us to understand Indonesian tax. They are very knowledgeable and dependable, and therefore a huge asset to our company.

    Tsui-Sie Wong
  • logo Ohmnia

    As a new business in Indonesia, we started consulting with multiple law firms but quickly narrowed down to only Cekindo. Cekindo was recommended as one of the top firms by multiple sources in the business community. The staff at Cekindo was very responsive to our needs as a new business. The team provided consultancy and assisted our startup firm with initial business setup, licenses and permits, HR/recruitment and market research. One year since our establishment, we still consider Cekindo as our partner.

    PT Ohmnia Tenaga Surya
  • Jan Pilar - Hydropol

    When we intended to enter the Indonesian market back in 2013/14, Cekindo helped us to understand the possibilites and options for business presence in Indonesia through legal advice & also advisory on how to arrange for ownership. Furthermore, Cekindo also provides us with a range of fully professional and reliable accounting & tax services for our representative office in Indonesia. In the world of digital & virtual economy like today, it is an essential prerequisite to have the most reliable business partner like Cekindo.

    Jan Pilař
  • Sagar Datar - Bristlecone

    A huge gratitude to Cekindo, particularly its visa team, for handling our visa cases. During our visa applications, Cekindo was extremely helpful not only in facilitating all of our visa requirements but also in clarifying our queries/doubts. I would like to take this opportunity to acknowledge and appreciate the good work of Cekindo’s visa team.

    Sagar Datar

Selected Clients


Frequently Asked Questions

I would like to expand my business to Indonesia. Can I set up a company there as a foreigner?

Is a foreigner able to become a director or commissioner?

I would like to set up a local PT company, but I don’t have a reliable local partner to act as the shareholder. What should I do?

I want to set up my company as soon as possible, is there some way to speed up the registration process?