• Indonesian
how to set up a pt company in indonesia

Registering Local PT Company in Indonesia

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 PT Company in Indonesia for Foreigners

Even 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

Registration Process of a Local PT

Icon 1 - company-nameSTEP 1: COMPANY NAME APPLICATION
Submit your company name to Ministry of Law & Human Rights

icon 2STEP 2: ARTICLE OF ASSOCIATION PREPARATION
This requires presence of a notary

icon-3STEP 3: DEED OF ESTABLISHMENT APPROVAL
Deed of Establishment is approved by Ministry of Law & Human Rights

icon-4STEP 4: CERTIFICATE OF DOMICILE ACQUISITION
Obtained from local government to show business location

icon-5STEP 5: TAXPAYER REGISTRATION NUMBER (NPWP) APPLICATION
To secure other licenses, fulfill tax obligations and open a bank account

icon-6STEP 6: BUSINESS IDENTIFICATION NUMBER (NIB) APPLICATION
Application is done via Online Single Submission (OSS) system

icon-7STEP 7: COMPANY REGISTRATION CERTIFICATE (TDP) ACQUISITION
After, you can apply for additional licenses (if required)

Starting a Local Company with Cekindo

Special Purpose Vehicle Services

Foreigners can register a local company through a Special Purpose 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.

Contact our consultants

Selected Testimonials

  • I am thankful for Cekindo, as they assisted me for several months to obtain my business visa and enter Indonesia. I was in constant contact with valuable consultants the provided me with updated information during this precarious time. Today, my being in Jakarta is not a miracle – it was made possible by Cekindo.

    Gabriel Francois Pierre Hossaert
  • Balev Coporation

    We needed an expert in applying and obtaining respective registrations for our product range in Indonesia, and a renowned German consultancy company in the safety compliance field recommended Cekindo due to their well-developed network in the Asia Pacific. Cekindo’s practical knowledge helped professionally shape and balance the wording of our labels, resulting in full compliance with Indonesian product regulations while taking into account the market and its end users.

    Rumen Myankov
    Balev Corporation
  • Tim Stewart - Photo

    I would like to acknowledge the exceptional service that PT. Cekindo Business International provided to me and my company. I needed to attend a meeting in Jakarta in October 2020 and because of the COVID-19, there were some restrictions with regard to visa application. I made the right decision by consulting with the visa team at Cekindo. The application process was expertly handled. The team ensured the visa was issued well ahead of time for my trip. I would recommend PT. Cekindo Business International to anyone looking for expert help in managing the visa application process.

    Tim Stewart
    Northern Territory Building Consultancy
  • 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
    Toaster

Selected Clients

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logo-sanqiang
logo-lamina
logo-linguaphone
logo-lekise
logo-mediata
logo-tsk
logo-hydropol
logo-decillion
logo-acapacific
logo-ezbuy
logo-polyparts
logo-siemens
logo-bluedot

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?

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