Company Registration & Setup

Setting up a company in Indonesia can be complex, but with our expert guidance, the process becomes seamless and stress-free. We handle company registration, legal documentation, licensing, and compliance, ensuring that your business is established legally and efficiently. Whether you’re a local entrepreneur or a foreign investor, our team is here to provide tailored solutions that meet your specific needs. Focus on your business growth while we take care of the paperwork and regulatory requirements for you.

Company Registration

We provide hassle-free company registration services to help you establish your business quickly and legally!

PT Registration - Who is it for and what are the benefits

PT Registration, short for Perseroan Terbatas company registration, is specifically for businesses in Indonesia that wish to establish a limited liability company.

PT Registration is suitable for Indonesian entrepreneurs who want to establish a formal legal entity to conduct their business activities. It provides a structure that separates personal assets from business liabilities, offering limited liability protection.

A PT (Perseroan Terbatas) is a local company, designed for Indonesian citizens and therefore we would only recommend setting up this type of business if you are either Indonesian or have a trustworthy Indonesian partner. If you are a foreigner we would recommend setting up a PMA. To find out more about PMA Establishment, you may check our PT PMA Establishment Page here!

Additionally, there are some business entities that are only available to Indonesian Companies, therefore, even if you are a foreign company or individual, you may still need to set up a PT.

At Easy Visa Indonesia, we specialize in assisting businesses with PT company registration and provide comprehensive support throughout the process, helping you establish a strong legal foundation for your business in Indonesia.

Steps to Register A Company in Indonesia

  1. Register the company name to the Notary. The name must contain 3 words.
  2. The Notary will make a draft Deed of Establishment.
  3. Decree Approval will be issued by the Ministry of Law & Human Rights.
  4. Obtain a Tax ID.
  5. Obtain the Registration Number (NIB/Nomor Induk Berusaha).
  6. Obtain the Business License through the Online Single Submission System.
  7. Obtain the Commercial License (if applicable).
  8. Limited Liability Protection: One of the primary benefits of PT registration is limited liability protection. The shareholders’ liability is generally limited to the value of their subscribed shares, minimizing personal financial risk in the event of business debts or legal issues.

Benefits of Setting Up a PT Company in Indonesia

Separate Legal Entity: A PT is considered a separate legal entity from its shareholders. This distinction provides the company with the ability to enter into contracts, acquire assets, and engage in legal proceedings on its own behalf, separate from its owners.

Investor Attraction: PT registration can enhance your business’s credibility and attract potential investors. Many investors prefer to invest in formal legal entities that offer limited liability protection and clear corporate governance structures.

Access to Local Market: Registering as a PT enables you to access the vast Indonesian market. It demonstrates your commitment to complying with local regulations and building trust among local customers, suppliers, and partners.

Perpetual Existence: A PT has perpetual existence, meaning it continues to exist regardless of changes in its ownership structure or the death of shareholders. This ensures continuity and stability for long-term business operations and future succession planning.

Ability to Hire Employees: As a registered PT, you can legally hire employees in Indonesia, allowing you to expand your workforce and scale your business operations as needed.

Financing Opportunities: PT registration opens doors to various financing opportunities, such as accessing bank loans, attracting investment, and issuing shares or bonds to raise capital for business growth and expansion.

Professional Image: Registering as a PT enhances your professional image and instils confidence in potential clients and business partners. It demonstrates that you are committed to operating according to Indonesia’s formal and legally compliant manner.

Minimum Requirements to Register a PT in Indonesia

  • 2 Local Shareholders.
  • 1 Local Director.
  • 1 Local Commissioner.

Additionally, there are 3 different-sized companies you can establish in Indonesia, and each of them requires a different amount of investment/paid-in capital.

  • Small: Above IDR 50.000.000 – 500.000.000.
  • Medium: Above IDR 500.000.000 – 10.000.000.000.
  • Large: Above IDR 10.000.000.000.

Please note that if you want to employ foreigners in a PT, the company size must be at least Medium-sized with a paid-in capital above IDR 1.100.000.000.

Document Requirements to Setup a PT Company in Indonesia

  1. Minimum 2 shareholders.
  2. Identity and contact details of Company Shareholders:
    • For Indonesian Individuals, KTP and NPWP.
    • For Indonesian Companies, copy of Article of Establishment and the amendments and the Approval from the Ministry of Law and Human Right, Domicile Letter, Tax Id, Business License, Company Registration Certificate (TDP/NIB)
  3. Identity and contact details of Company Directors and Commissioner:
    • For Indonesian individuals, KTP, NPWP, email and phone number.
    • For Foreign Individuals, valid passport, email and phone number.
  4. Original Domicile from building management.
  5. Copy of Lease Agreement between company and building management.

PT PMA Registration - Who is it for and what are the benefits

PT PMA registration refers to the process of establishing a foreign-owned limited liability company (PT PMA) in Indonesia. PT PMA company in Indonesia stands for Perseroan Terbatas Penanaman Modal Asing ( PMDA ), which translates to “Limited Liability Company with Foreign Direct Investment.”

PT PMA registration is specifically designed for foreign investors who intend to establish a company or expand their business operations in Indonesia. It provides a legal framework for foreign investors to participate in various sectors of the Indonesian economy, subject to certain restrictions and regulations.

Foreign investors can engage in PT PMA registration to set up new companies or acquire existing local companies. The registration process allows them to operate in various sectors such as manufacturing, services, trading, construction, agriculture, and many others, depending on the prevailing investment regulations and restrictions.

It’s important to note that PT PMA registration is subject to specific eligibility criteria, including minimum capital requirements, sector-specific regulations, and compliance with foreign ownership restrictions. The process involves various steps, such as obtaining licenses, and permits, and fulfilling administrative requirements, all of which are overseen by the Investment Coordinating Board (BKPM) in Indonesia.

At Easy Visa Indonesia, we have experts to help you set up a PT PMA registration and navigate the process, ensuring compliance, and maximizing your investment opportunities in Indonesia.

Steps to Register A Company in Indonesia

  1. Register the company name to the Notary. The name must contain 3 words.
  2. The Notary will make a draft Deed of Establishment.
  3. Decree Approval will be issued by the Ministry of Law & Human Rights.
  4. Obtain the Business License and Business Identification Number (NIB) through the Online Single Submission System.
  5. Obtain the Commercial License (if applicable).

Benefits of Setting Up a PT PMA in Indonesia

One of the primary advantages of PT PMA is that it allows for foreign ownership in various sectors. While local PT companies are typically restricted to Indonesian ownership, PT PMAs enable foreign investors to have a majority or 100% ownership, depending on the sector and prevailing regulations. This provides greater control and flexibility for foreign investors in managing their businesses.

Foreign Ownership: One of the primary advantages of PT PMA is that it allows for foreign ownership in various sectors. While local PT companies are typically restricted to Indonesian ownership, PT PMAs enable foreign investors to have a majority or 100% ownership, depending on the sector and prevailing regulations. This provides greater control and flexibility for foreign investors in managing their businesses.

Market Access: PT PMA has access to a broader range of business sectors compared to local PT companies. Certain sectors, such as telecommunications, transportation, healthcare, and e-commerce, may have restrictions on local PT companies but are open to foreign investment through PT PMAs. This expands the market opportunities for foreign investors in Indonesia.

Legal Protection: As a registered foreign-owned entity, PT PMAs benefit from legal protection under Indonesian law. This protection includes property rights, intellectual property rights, contractual agreements, and access to dispute resolution mechanisms. PT PMAs provide a recognized legal framework that safeguards the interests and rights of foreign investors operating in Indonesia.

International Image and Reputation: As a registered foreign-owned entity, PT PMAs benefit from legal protection under Indonesian law. This protection includes property rights, intellectual property rights, contractual agreements, and access to dispute resolution mechanisms. PT PMAs provide a recognized legal framework that safeguards the interests and rights of foreign investors operating in Indonesia.

Minimum Requirements to Register a Foreign Business in Indonesia

To register a PT PMA Company (Foreign Investment Limited Liability Company) in Indonesia, a business should have:

  • At least two shareholders, one should be a foreigner and one local.
  • Identity and contact details of Company Shareholders, with requirements as follows:
  • Indonesian Individuals would require KTP (ID Card) and taxpayer identification number (NPWP).
  • Foreign individuals will require a valid passport.
  • In addition, Indonesian Companies will require a copy of the Article of Establishment, the Approval letter from the Ministry of Law and Human Rights, a Domicile Letter, a Tax ID, and other supporting licences. To understand more about the documents you need to register your PT PMA, kindly contact us here for a free consultation.
  • Foreign Companies should also provide a copy of the Article of Association in English or its translation in Bahasa Indonesia from a certified translator.
  • Identity and Contact details of Company Directors and Commissioners:
  • Indonesian Directors and Commissioners must provide KTP, NPWP, email and phone number.
  • Foreign individuals should provide a valid passport, email and phone number.
  • Copy of Lease Agreement between company and building management.

Specific Requirements for Paid-Up Capital required for the establishment of a PT PMA

The following specific provisions apply to Foreign Direct Investment Companies (PT PMA) if they are keen to invest in Indonesia:

  • Applicable to large-scale enterprises: Not applicable to micro, small, and medium enterprises.
  • Open to foreign ownership: Only applies to business activities that permit foreign ownership.
  • Minimum capital ownership: PT PMA entities are classified as large-scale enterprises and must adhere to a minimum investment value of at least IDR 10 billion (unless otherwise stipulated by law) (Article 12 paragraphs (1) and (2) of BKPM Regulation 4/2021).
  • Minimum paid-up foreign capital: PT PMA requires a minimum paid-up capital of at least IDR 10 billion (unless otherwise stipulated by law) (Article 12 paragraph (7) of BKPM Regulation 4/2021).

If your business is international and you are looking to potentially expand to Indonesia then this is the perfect company establishment type for you.

As a representative office, you will be able to supervise and coordinate business or do market research without the risk of large investments. A representative Office is an ideal option for businesses that are exploring business opportunities in the Indonesian market.

As a representative office, you will not be allowed to generate revenue, make business transactions, import or export goods. However,  you are entitled to obtain work permits for expatriate managers as well as obtain Multiple Business Visas for personal.

Generally, businesses pick this option if they are conducting market research or seeing whether their business model will work before setting up a PMA.

The main advantages of setting up this business entity include:

  • Its relative ease to set up.
  • There is no need for large investments or paid up capital.
  • There is significantly less paperwork as you will only need to report income tax for the employees as well as office space tax.
  • If you require any more information on how to set up a Representative office or any of the above, then feel free to contact the Easy Visa Indonesia Team, we will be happy to help.

Steps to get your Export Licenses with LetsMoveIndonesia

  1. Obtain the Business License of Representative Office via the Online Single Submission System.
  2. Obtain the Tax ID.
  3. Obtain the Registration Number (NIB/Nomor Induk Berusaha).

Requirements

  1. Business license of foreign parent company.
  2. Articles of Association of the foreign parent company, including amendment(s) in English.
  3. Letter of Appointment from the foreign parent company.
  4. Letter of Intent – signed by the Director with the company stamp.
  5. Letter of Statement – signed by the Chief Representative, mentioning the willingness to live in Indonesia and will not conduct other works/business beside the activity of the Representative Office.
  6. Power of Attorney to sign the application if being represented by another party.
  7. Copy of Registration at Chamber of Commerce of foreign parent company
    (For number 2 – 7 need to be legalized by a Public Notary and Indonesian Embassy in the country of foreign parent company).
  8. Reference Letter from Indonesian Embassy Representative in the principal country.
  9. Representative Business Plan.
  10. Copy of valid passport (of foreign national); or a copy of ID Card and NPWP (of Indonesian national) who will be proposed as the Representative Office Head.
  11. Letterhead Parent Company.
  12. Curriculum Vitae, Degree Certificate, and photograph of the Representative Office Head.
  13. Lease Agreement of Office in Indonesia.
  14. Scan Copy Tax Land Building and its payment (Pajak Bumi Bangunan/PBB)/
  15. Photo of the Office.

Frequently Asked Questions

As a business owner or investor, it is important to understand the Indonesian law and legal system when conducting business. It’s important to keep in mind that Indonesian regulations are constantly changing, so it’s also important to stay up-to-date with the latest legal developments. By engaging a reliable legal consultants in Indonesia, investors and business owners can provide advice that their business operations with the peace of mind.

To optimally support your business with specialized legal needs and stay on top with the most recent regulations in Indonesia, we suggest to choose a legal services provider who are proactive, predictive, risk-appropriate, transparent, cost-effective, efficient, collaborative, and consumer-centric. At Easy Visa Indonesia, we make sure all the legal process meet consumer’s need while stay compliant with business regulations in Indonesia.

Easy Visa Indonesia is mostly referred to be Indonesia’s Most Trusted Agency in handling Visa and Business Legal Consultancy due to our working ethic and professionalism, so our clients can navigate their legal process efficiently and effectively.

Easy Visa Indonesia’s qualified legal services consultants assist dozens of local and international businesses with comprehensive legal support and provide legal guidance in completing their business setups in Indonesia every single month. As the first national agency that openly advertises our prices, we are being the most cost-effective national agency in the country. Contact us to provide legal advice for immigration and business compliance in Indonesia.

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