How to Set Up a Local PT Company in Indonesia

A local company or PT Company is Indonesia’s most common legal entity. Although PT is intended for Indonesian citizens, there are some conditions under which foreign investors can incorporate a PT in Indonesia.
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Advantages of Establishing a PT in Indonesia for Foreign Citizens

Although other legal entities, such as PT PMA and Representative Offices, are explicitly created for foreign nationals, establishing a local company can offer more advantages for certain foreign entrepreneurs.

Lower Incorporation Costs

The capital needed for local companies is significantly lower than PT PMA, with a range of IDR 50,000,000 to over IDR 10,000,000,000. The amount of capital will determine the size of the company and its eligibility to sponsor work permits for foreign workers. Therefore, local companies are categorized based on their capital amount.

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

Unrestricted in Certain Business Fields

The Positive Investment List regulates foreign ownership in different business sectors. Certain business activities may be entirely closed for foreign investors, while others may have partial restrictions. On the other hand, local companies have no limitations and may be the sole option for starting a business in Indonesia in the desired sector.

Registration Process of a Local PT Company in Indonesia

Local PT Company: The Establishment Process

1. Approval of Company Name
The requirement is for three words that are neither vulgar nor obscene.

2. Deed of Incorporation
To adhere to the regulations, including an Article of Association and having a notary present is necessary.

3. Domicile Letter
You must provide a domicile letter to indicate the location of your business.

4. Registration of Tax ID (NPWP)
A valid NPWP is required for securing other companies’ licenses, banking activities, and fulfilling tax obligations.

5. Application of NIB
Along with the NIB, business permits, and location, permits will also be issued one day after registration through OSS.

6. Company Registration Certificate (TDP) Acquisition
After that, you can apply for another permission (if needed).

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Start a Local PT Company with InCorp Indonesia

InCorp Indonesia provides a comprehensive range of services, from document management to obtaining business licenses, supported by experienced and professional consultants. By partnering with InCorp Indonesia, you can concentrate on your business operations while leaving the administrative and licensing tasks to the experts.

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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.

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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.

Frequently Asked Questions

To provide you with accurate pricing information for our company registration services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, don't hesitate to contact our consultants.

It all depends on your business's purpose and nature. Our consultants will help you to clear out the matters.

Foreigner have to establish a foreign-owned company (PT PMA) in Indonesia. For detail procedure, let’s talk to our consultants.

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.

Yes

It should take between 1 to 1.5 months. For speedy incorporation, you can choose a shelf company (ready-made company) instead.

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.

Of course. To do so, you need to engage with a local nominee service provider.

What Our Clients Say

After comparing several consultants, I found InCorp Indonesia is a international and professional organization with good understanding of local market. InCorp Indonesia helped our company to set up our first Indonesian entity, and also helps with day-to-day operation. InCorp Indonesia showed high level of professionalism. Jump start the business in Indonesia, take care of routine process, therefore we can focus more on our core business.
China Fortune Land
China Fortune LandDevelopment Co,. Ltd.
Cekindo provided outstanding services in registering our representative office in Indonesia in a timely manner. Their financial services have been helping us a lot — our local employees feel secure working for our company. Cekindo became our reliable partner with quick response on our needs. Their flexibility and full support of our business in Indonesia are the main reasons to continue in our cooperation.
Desmi
Desmi
We chose Cekindo because we considered Cekindo as a professional company with a good attitude and a streamlined business model. Cekindo met all our expectations as it created the atmosphere of accountability and transparency. The most significant added values that we received from cooperation with Cekindo are the time we saved and mistakes we avoided.
PT AESK
PT AESK
We were searching for suitable partner for the begining of our operation on Indonesian market. After short exploration and recommendation from our business partners we decided for Cekindo. Local knowledge, orientation at our business problematics, contacts and language. In a friendly approach combined with professional service. Consultation before the project – avoids so much unnecessary act of “foreigners” worse overview of the Indonesian legislative.
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Sedbergh, Ltd.
Herewith we want to express our appreciation to PT. Cekindo Business International and their team for all the support on medical devices services so far. We would like to take this opportunity to thank Cekindo for taking the time to listen to our needs. Whenever a need has arisen, we have always received their consistent, timely and quality support. We would not hesitate to recommend Cekindo team for any related activity or services.
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ELC Group
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