Company Registration Indonesia is a gateway to Southeast Asia’s largest economy, offering immense growth opportunities. However, for both foreign and local entrepreneurs, the process can seem complex, involving specific legal procedures and documentation.
This comprehensive guide will walk you through the entire company registration process, from initial planning to full operational readiness. We will simplify the complexities and provide a clear roadmap to help you establish a successful business presence in Indonesia.
A key part of this success involves understanding the operational landscape, including crucial factors like the average wage in Indonesia.
Stage 1: Pre-Registration – Planning Your Business Setup
Before diving into paperwork, crucial foundational decisions must be made. Getting this stage right will make the entire registration process smoother and is fundamental to maintaining future legal compliance with an EOR.
1. Choose the Right Business Entity
A key requirement for a PT PMA is a minimum investment plan of over IDR 10 billion, with at least IDR 10 billion in paid-up capital.
This mandate is stipulated in the Regulation of the Investment Coordinating Board Number 4 of 2021.
- Foreign-Owned Company (PT PMA – Perseroan Terbatas Penanaman Modal Asing)
This is the required legal entity for foreign investors seeking to conduct business and generate revenue in Indonesia. - Local Company (PT Lokal)
Indonesian citizens fully own this entity. It has less stringent capital requirements compared to a PT PMA. - Representative Office (KPPA)
As regulated under BKPM Regulation No. 4 of 2021, a KPPA is suitable for foreign companies that want to conduct market research or act as a liaison, and is not permitted to engage in commercial activities or generate profits.
2. Reserve Your Company Name
Your company name must be unique and comply with regulations from the Ministry of Law and Human Rights.
- Requirements
A PT name must consist of at least three words. - Language
PT PMA can use English names, while Local PTs must use Bahasa Indonesia. - Restrictions
The name cannot be misleading, similar to government or international institutions, or violate public morality.
3. Determine Company Officers
An Indonesian PT requires a specific management structure:
- Shareholders
A minimum of two shareholders is required (can be individuals or corporations). - Director
At least one director is needed to manage daily operations. - Commissioner
At least one commissioner is required to supervise the director’s activities.
For a PT PMA, foreign nationals can be appointed to these roles, but specific regulations may apply depending on the business sector.
Stage 2: Registration – The Formal Legal Process
Once your planning is complete, it’s time to formalize the registration.
4. Draft the Articles of Association (AoA)
This is the company’s foundational legal document, drafted and signed before a public notary. The AoA (Akta Pendirian) outlines the company’s constitution, including:
- Company name and domicile (address).
- Business objectives and activities (based on KBLI codes).
- Capital structure (authorized, issued, and paid-up capital).
- Details of shareholders.
- Appointment procedures for the Board of Directors and Commissioners.
5. Obtain the Deed of Establishment & Ministry Approval
After the AoA is signed, the notary will submit it to the Ministry of Law and Human Rights for approval.
Upon approval, the Ministry issues a Deed of Establishment (Surat Keputusan/SK Pengesahan), officially recognizing your company as a legal entity in Indonesia.
6. Obtain a Taxpayer Identification Number (NPWP)
Every company must register at the local tax office to get a Taxpayer Identification Number (NPWP). The NPWP is essential for all tax obligations, financial transactions, and obtaining other business licenses.
For a detailed guide on the application process, you can learn more about how to apply for an NPWP.
7. Register on the Online Single Submission (OSS) System
The Indonesian government has streamlined business licensing through the Online Single Submission (OSS) system. Upon registration, your company will receive a Business Identification Number (NIB – Nomor Induk Berusaha).
The NIB is a crucial 13-digit number that also functions as:
- Company Registration Certificate (TDP)
- Importer Identification Number (API)
- Customs Access (Hak Akses Kepabeanan)
Stage 3: Post-Registration – Becoming Operational
With your legal entity and NIB secured, a few final steps remain.
8. Secure Additional Business Licenses
While the NIB serves as the primary business license, certain “high-risk” sectors require additional, sector-specific licenses and permits (e.g., construction, healthcare, financial services). These are also processed through the OSS system.
9. Open a Corporate Bank Account
Once the company is legally established and has an NPWP, you can open a corporate bank account in Indonesia. This is vital for managing your capital and daily financial transactions.
Required Documents Checklist
Simplify Registration with Abhitech’s Employer of Record (EOR) Service
Navigating Indonesia’s complex regulations is a challenge. Instead of tackling it alone, leverage Abhitech’s Employer of Record (EOR) service. With over 30 years of proven experience, we provide a compliant, end-to-end solution that handles your initial registration and lays the foundation for your long-term operational success.
Here’s how our EOR service simplifies the entire process:
- Seamless Company Setup
We manage the entire end-to-end registration process as part of our EOR onboarding—from preparing and notarizing documents to securing your NIB and other essential permits. - Guaranteed Regulatory Compliance
Our core expertise is navigating Indonesia’s complex legal and HR regulations, ensuring your company setup and ongoing operations adhere to the latest laws. - Ongoing Operational Support
Beyond registration, our EOR service offers ongoing support for all your employment needs, including payroll, tax management, and HR administration.
Let us handle the legal complexities through our trusted EOR service so you can focus on growing your business. For personalized guidance and to begin the process, contact the Abhitech team through our official contact Us.
Frequently Asked Questions (FAQ)
- How long does it take to register a company in Indonesia?
The process usually takes a few weeks, depending on the completeness of your documents and government processing times. - Can a foreigner own 100% of a company in Indonesia?
Yes, many sectors permit 100% foreign ownership (PT PMA), but specific industries have restrictions based on the Positive Investment List. - What is the estimated cost of registering a company?
The cost depends on your company type and the services you need. For a detailed quotation tailored to your business, please contact our team.
