To encourage concern growth within Indonesia, the government is actively creating a conducive surroundings for foreign investors through initiatives that reduce barriers. Today, the company registration process is simple and partly digitalised for ease of Indonesian company incorporation

Besides the first ii steps that cannot be processed online, the rest of the process can be done online through the online organization known as Online Unmarried Submission (OSS).

Approval of incorporation documents takes near 10 working days, after which yous typhoon your articles of Association and employ for business licenses. The overall incorporation/registration period is between ii and three months.

NOTE: Indonesia does not allow registration of branch offices.

Options for Fully Foreign Owned Indonesian Companies

A visitor is considered a strange visitor if there is a strange investor or shareholder in the company. Such companies must get approval from the board coordinating upper-case letter investment earlier engaging in Indonesia'due south business activity.

The amount of majuscule invested in a particular business organization will define the business organisation company's size and the eligibility to sponsor foreign employees' work permits. Republic of indonesia allows total foreign ownership in industries that are not categorised under the Positive Investment Listing.

If you are a foreign business owner who wants to register your company for full ownership, you have the post-obit options:

You can register your concern company equally PT (Perseroan Terbatas)

PT is a local term referring to a express liability company, and it is the most common foreign company option that incorporated in Republic of indonesia.
It exists in three categories:

The paid-up capitals vary depending on the category, and they are established upon the approval from the Uppercase Investment Coordinating Board. Most local and foreign investors with permanent residency employ this choice.

This blazon of Business Company is easy to set up, and information technology offers limited liability for most strange entities and local entities as it supports work visas. PT companies crave:

  • A foreign or local commissioner

You can register your visitor as PMA (Penanaman Modal Asing)

PMA companies tin exist fully or partially foreign-owned. Such a company is established under the stipulated regulations of Foreign Majuscule Investment Law and approved by the Uppercase Analogous Board of Republic of indonesia. PMA companies can be converted into public companies later.

You can register your company equally KPPA

This is a strange representative office, and it takes three-4 working weeks of the registration process. This company registration blazon is suitable for investors who want to study the Republic of indonesia market place for research and business-related development purposes. They serve every bit the parent company's buying and selling agent. However, information technology is restricted to certain concern regions such as services, banking, trading, mining, gas, and oil.

You lot can annals your company every bit KP3A

This is a foreign trade representative office.

Alternative Company Types to Consider

In that location are 2 other company types you lot can register in Indonesia, aside from the in a higher place mentioned.

1. Nominee Limited Liability Company

When you want to brainstorm operations immediately, you tin can register a visitor in Indonesia using an Indonesian nominee. Registering this type of company enables you to bypass some foreign investment restrictions, close deals fast, and obtain contracts.

2. Public company

This blazon of company is required to attach to stringent company registration regulations. It has at least 300 shareholders and a paid-up capital of IDR billion. Information technology is a requirement to exist listed under the stock exchange.

What is the Process of Registering a Company in Republic of indonesia

Business organisation registration and incorporation depend on your company type, and this besides determines the registration duration. The post-obit are the procedures for one to register a company in Republic of indonesia:

Cull Your Business concern Structure

Decide which business construction is suitable for you. After which, yous will have to assign or engage professional services such every bit corporate secretary, human resource, bookkeeping, etc. To take care of your employees' requirements, ongoing filings, and bookkeeping.

Choose a unique visitor proper name

The company name contains at least three dissimilar words. You lot are required to provide iii options for your company name in English, Indonesia or both. These 3 proper name options salve yous the trouble of having to go back and think of a name if the first option has been already in utilize.

After deciding, you will need to register the visitor's name at the Ministry of Police force and Human being Rights. Be sure to have your company name approved from the Notary Public as it is a sign that your business is a legal entity.

Annotation: You tin can change your company proper noun subsequently incorporation, even so it requires time and effort to practise and so – you can find out more than about selecting and irresolute company names here (link to article).

Have a registered office

As soon equally yous are confirmed with your business formation, exercise ensure that yous have a registered part and a mailing address.

Register your company for a concern license

The process of getting a concern license varies with each concern type. You lot are required to employ for a certificate of business organization registration and company registration documents from the offices of the Ministry of Trade.

Incorporation checker

How to Apply for a Business concern License

To register your company, submit your duly filled application at the Investment Coordinating Board of Republic of indonesia offices.

ane. Obtain your company's Deed of Establishment (DOE)

The other process in incorporating your visitor is obtaining DOE from the ministry of Police force and Human Rights using a duly filled application course. All your visitor documents are to be notarised. The legalised documents are publicised inside 14 days in the State Gazette.

2. Apply for SIUP (Surat Izin Usaha Perniagaan)

SIUP a permanent license for trading. You lot will use the receipt that you obtained while registering the company name.

3. Apply for Business Registration Number

You will exist given a Business Registration Number, import license, community identification, and you volition also go registered by the Badan Penyelenggara Jaminan Sosial (BPJS) Ketenagakerjaan and BPJS Kesehantan as part of the package.

4. Have your visitor registered with the tax part for tax compliance purposes

Yous will and so be issued the company's Tax Identification Number, which will be sent to your company'southward accost. You may too be issued with a domicile certification for taxation purposes, but the dwelling house is non mandatory. The domicile certificate is issued by the municipality or the building management in the role'south locality. A registration number Value Added Tax (VAT) collector number will also be given.

v. Obtain work visas

Both the local and strange employees in your company will require work visas (KITAS) before working in your company. These visas come in the course of single-entry and multiple-entry business visas.

6. Ready a corporate bank business relationship

The other activeness you should consider when setting up an Indonesian company is opening a corporate bank account. This is where you deposit your paid-up majuscule after incorporating your company.

At this indicate, your company is considered registered, and you may operate every bit a registered business. However, you must still do the post-obit every bit part of the process:

  • You lot are required to submit the labor study and other required documents at the Ministry building of Labor within 30 days.

  • Utilise social security programs for workers. This program sensitises employees on workplace accidents, security after retirement, security for alimony, and decease.

  • Adjacent, be insured for healthcare and employee welfare from the Badan Penyelenggara Jaminan Sosial (BPJS)

FAQs

How long does it take to register a company? Intern 2021-ten-27T17:eleven:47+08:00

The application and approvals for the diverse documents take around ane-two months, sometimes upward to 3 months. All the same, this is a rough estimation equally every incorporation have different timeframes depending on the business.

What is the latest update on the Positive and Negative Investment List? Intern 2021-10-27T17:10:32+08:00

Every bit of 4 March 2021, the Positive Investment List was introduced to significantly reduce the number of restricted sectors that prevents foreigners to enter from 350 to 46.

What is the Positive and Negative Investment List? Intern 2021-10-27T17:09:50+08:00

The Negative Investment List was replaced by the Positive Investment Listing in 2021. The list details the restricted sectors that the government prohibits investors and entrepreneurs to invest in.

Are foreigners immune to set up a local PT company in Indonesia? Intern 2021-10-27T17:08:58+08:00

Yes, foreigners can contain a local PT company through a local nominee system. To control the company as a foreigner, you can manage all the financials of the company by holding the company bank account.