Registering Representative Company in Indonesia

There are 3 company types you can choose from depending on your requirements, preferences, and the nature of your business. You should consider the expected revenue from the business, the business sector it belongs to, whether there are regulations on foreign ownership within your business sector, and paid-up capital, among others.

1. Foreign-Owned Company (PT PMA)
2. Local Company (PT)
3. Representative Office

You may also consider using the services of a local distributor and import your products to Indonesia without setting up a company. Cekindo can assist with searching for a reliable local distributor, or you may appoint Cekindo as your local distributor. This will give you the advantage of using more than one trader.

As their names suggest, the main differences among three business kinds in Indonesia lie in the nature of the businesses and the purpose of their incorporation. Owners of a local company (PT) must be Indonesian citizens as even 1 percent of foreign ownership is not allowed. This type of companies is not limited to enter any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open for international investors, but the maximal percentage of foreign share differs in various business sectors. Contact Cekindo to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understand the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and does not have the right to do the direct selling and receive income. More information in our In-Depth Guide to Representative Offices in Indonesia.

All business types mentioned above are forms of local companies (PT) it means that the company has to have a minimum of 2 shareholders, 1 director, and 1 commissioner and 100 percent of shareholders and commissioner have to be local while at least one of the directors should also be Indonesian. While foreign nationals who wish to start a local company might struggle with this requirement, Cekindo came up with a solution in the form of local company ‘packages’: Local Nominee Company is a local company with local shareholders, commissioner nominees provided. This service enables entrepreneurs to start a business without the hassle of searching for trustworthy local nominees. Shelf Companies are local companies which have been already established and put ‘on a shelf’ immediately after the registration process. These companies with no business history are the fastest solution how to enter the Indonesian market.

For setting up a local PT company or PT PMA company, the process takes 1-1.5 months. If you would like to start doing business as soon as possible, Cekindo has the shelf company option, which means the availability of a ready-made company that allows for the immediate transfer of management control to you. With this option, you would have a company ready to operate within 5 days.