Company Registration in Indonesia: The Ultimate Guide
Engaging in a company registration in Indonesia is the first step to expanding your business operations legally into the country. There are many options business owners can opt for their company registration in Indonesia, but the most common types are a Foreign-Owned Company (PT PMA) or Representative Office. Each has its benefits, and one may be better suited for you based on your business expansion objectives.
Types of Legal Entities for Foreign Investors in Indonesia
PT PMA ( Foreign-owned Company)
Suppose you are a foreign investor who wants full control of your business. In that case, establishing a PT PMA by starting your company registration in Indonesia is the best option you can opt for. PT PMA is the only legal entity in Indonesia that allows up to 100% foreign ownership. However, each sector has regulations on their permitted business activities, and the Positive Investment List determines the maximum amount of shares foreigners can own.
General Representative Office (KPPA)
A representative office (RO) is one of the types of company registration in Indonesia that is suitable for foreign investors and business owners at the early expansion stage in Indonesia. ROs allow foreign businesses to test the Indonesian market before establishing any commercial operations. ROs also work best for non-sales activities, such as customer service support, approaching potential clients, and conducting marketing and brand awareness initiatives.
Representative Office for Business Trading (KP3A)
KP3A is a representative office that is established specifically for business trading. Both general and trading RO’s are prohibited from conducting business activities that generate financial income. However, a trading RO may be established in any part of Indonesia, whereas a general RO is not able to do so.
Representative Office for Construction Company (BUJKA)
Similar to KP3A, a BUJKA is a representative office specifically established for foreign construction companies. A BUJKA may engage in large-scale construction projects, but only under a joint operation with a local company known as Local PT. Despite its limitations, a BUJKA is still a good start for foreign construction companies to set their footprint in Indonesia, as they are allowed to collaborate on building projects without obtaining a construction license (SIUJK).
The Process of Setting Up A Company in Indonesia
Internal Process
Consultation
Talk to our experts about your expansion objectives and how to do company registration Indonesia.
Collecting Required Documents
Provide us with all the documents required for company establishment in the company registration Indonesia process.
Document Review
We ensure your submitted documents are aligned with the latest company registration Indonesia regulations.
Drafting
We will draft your application letter addressed to related government bodies for the company registration Indonesia process.
Documents Submission
We file all your documents to the related government bodies on your behalf for your company registration Indonesia.
External Process
Registration of Indonesian Tax ID (NPWP)
An NPWP is required to secure other business licenses, open a bank account, and fulfilling tax obligations.
Obtain Indonesian Business Identification Number (NIB)
A NIB is required for a company registration Indonesia to conduct immediate business operations.
Deed of Incorporation (For PT PMA)
A Notary should draft and legalized your Deed of Incorporation.
Approval of Legal Entity (For PT PMA)
After submission of Deed of Incorporation by the notary, the Ministry of Law and Human Rights will give approval.
Securing Other Licenses (For PT PMA)
Some sectors and business activities require more specific business licenses and permits for their company registration Indonesia process. This process can from 7 to 20 days, depending on your business sector.
*The estimated time after all the required documents is deemed eligible for submission to the related government’s bodies.
Comparisons of Company Establishment Options for Foreign Investors in Indonesia
Frequent 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.
Foreigners 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 under name import service, also known as importer of record.
Of course. To do so, you need to engage with a local nominee service provider.
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