Indonesia company registration
Indonesia company registration is a hassle-free process if you know how to go about it. With Tetra Consultants at the wheel, you will be able to dedicate your time and resources to other more important business channels.
With our lean-and-mean mentality, you can rely on our team of experts to provide you a seamless experience throughout the whole process of Indonesia business set up. Our ultimate goal is for your Indonesian company to be operationally ready within the stipulated time frame.
Our service package includes everything you will require to do business in Indonesia:
- Company registration
- Provision of local resident director
- Local company secretary and registered address
- Securing Investment Coordinating Board (BKMP) foreign investment approval
- Opening local or international corporate bank account
- Annual accounting and tax services
Can foreigners register a company in Indonesia?
- Setting up a business in Indonesia as a foreign investor or entrepreneur is not as straightforward. In order to receive approval from the Indonesian authorities for the registration of a company with foreign ownership, certain requirements need to be met.
- Foreign ownership will vary from 0% to 100% depending on the intended business activities in Indonesia. For more information, you can refer to the Negative Investment List.
- Additionally, to secure the BKMP foreign investment approval, your business will require a paid-up capital of approximately US$250,000.
How long does it take to set up a company in Indonesia?
- Within 12 weeks, Tetra Consultants will register Indonesia company, secure BKPM foreign investment approval and open a local Indonesian corporate bank account for you. This process can be completed without you being required to travel to Indonesia.
- We have prepared a step-by-step explanation of all steps required to successfully register the Indonesian company.
- After Tetra Consultants has registered your Indonesian company with the Indonesia business registry, you can expect to receive the documents of your new company including the company registration certificate, memorandum & articles of association as well as register of directors and shareholders.
- The Indonesia company registration documents will be in Bahasa Indonesian and Tetra Consultants will assist you to have the documents translated by a certified translator.
- If you are looking to start operations in a shorter time, Tetra Consultants will recommend you to consider purchasing an Indonesia shelf company. With this fast solution, our international clients can own an Indonesian company and a local corporate bank account within 6 weeks.
How to register company in Indonesia?
Step 1: Choosing an optimum business structure
- Before registering your company, Tetra Consultants will understand your business activities and recommend a suitable form of legal entity for you.
Step 2: Check to see if you meet all the requirements
- Once you have chosen a suitable business entity, you must check to see if you meet all the requirements of the government. The specific requirements differ depending on the type of entity structure, which will be elaborated on below.
Step 3: Reserve your preferred company name
- You may wonder how to check Indonesia company registration to check the availability of the name. You can access the official company directory on the government website to do so.
- You will then need to get clearance for the name with a notary. Tetra Consultants will assist you to secure a notary who will first pay IDR 200,000 at a local bank, to get clearance for your intended name via an electronic processing system.
- The notary will then obtain a code together with the receipt of payment confirming the transaction, and this code will then be used to submit an online reservation of the name with the Indonesia Ministry of Law & Human Rights.
Step 4: Prepare all required documents
- Tetra Consultants will assist you in preparing all the required incorporation documents. The specific documents mandated will depend on your type of business structure.
- For a foreign Limited Liability Company (PT), documents needed include:
- Passport copy of the shareholder if the shareholder is a natural person, or legal business document and passport copy of the director if the shareholder is a corporate entity.
- Registered office address of the company
- If a physical office space is to be purchased, you would need to submit the Leased Agreement or Deed of purchase
- Your documents will then have to be notarised with the help of the notary.
Step 5: Apply for the Deed of Establishment and Certificate of Domicile
- Tetra Consultants will then proceed to apply for the deed of establishment to the Ministry of Law and Human Rights. This must be done before 60 days pass after the creation of the deed. Approval will take place within 2 weeks after the application.
- You will then receive the Certificate of Company Domicile from the local government, along with other documents needed to operate your business in Indonesia.
- For businesses that have a physical presence in an office building in Indonesia, you would first have to apply for a Domicile Certificate for Building Management from the Building Management Office.
Step 6: Apply for business trading license (SIUP)
- Next, Tetra Consultants will assist your company to secure the SIUP, which refers to the permanent business trading license, from the Ministry of Trade. This is necessary for non-facility businesses that partake in trade. The license will include information about the individual in charge of the business as well as the nature of the business’ activities.
Step 7: Apply for Taxpayer Registration Number (NPWP)
- Tetra Consultants will then assist your business to register with the local tax office you are incorporating in, to obtain a Tax Identification Number (NPWP). Our dedicated team of accountants will then assist you to meet all tax filing and financial reporting requirements to remain compliant.
Step 8: Apply for Business Trading License (SIUP)
- The company must then apply for the permanent business trading license (SIUP) at the Ministry of Trade. This constitutes the business license for a non-facility company engaging in trading business and contains details about company activities, and the person in charge of the company.
Step 9: Register your company in OSS
- Once the above steps are completed, Tetra Consultants will proceed to registering your company in the One Single Submission System (OSS).
- Once the incorporation process is completed, you will receive the company registration certificate which would also contain the Company’s Business Identification Number (NIB).
Step 10: Apply for Company Registration Certificate (TDP) and relevant licenses
- Depending on your business activity and capital, you will also be required to apply for suitable business license in order to operate your business in Indonesia.
- You may also apply or register with other necessary systems at the local level, including applying for health care insurance for your company staff, registering with social security and VAT collection.
Step 11: Open a corporate bank account
- After the incorporation of your business, you need to open a corporate bank account with a reputable bank.
- Tetra Consultants will leverage our extensive banking network to open one for your business with either a local or international bank, depending on your preference. You will then be able to begin business transactions.
What are the types of companies in Indonesia?
- It is not straightforward to register a company in Indonesia as a foreigner. Many industries are protected by the Indonesian government and some of them will require local shareholders.
- There are three main types of business entities in Indonesia, mainly the Limited Liability Company (PT), Foreign-owned Limited Liability Company (PT-PMA), and Representative Office.
- Tetra Consultants will fully understand your business activity and determine the best strategy for your company’s expansion into Indonesia as per the Negative Investment List.
Limited Liability Company (PT)
- If you are looking to register a company in Indonesia that is 100% local-owned, the most suitable business entity will be the Perseroan Terbatas (PT) company.
- This business entity allows only 100% Indonesian citizen ownership.
- If you are a foreign investor whose business nature requires your company to be 100% locally owned, you will require a nominee company to act on your behalf. In such a case, Tetra Consultants will act as your local Indonesian shareholder and director. Our legal team will prepare a nominee shareholder agreement to be signed by all parties, stating Tetra Consultants has no authority nor decision-making power in your company.
- A PT can be set up with the following requirements:
- 2 local resident shareholders
- 1 local resident director
- 1 commissioner of any nationality
- Paid-up capital depends on whether you are registering a small, medium, or large company
- Tetra Consultants recommends you to set up a PT in Indonesia only if you are planning to conduct businesses that are protected by the Negative Investment List.
Foreign-owned Limited Liability Company (PT PMA)
- If you are a foreign investor who wishes to open company in Indonesia, Tetra Consultants will recommend you to set up a Penanaman Modal Asing (PMA). You can 100% own a PT PMA and will have full control as long as your business activity is not forbidden by the Indonesian government.
- In order to operate in Indonesia, you are required to secure foreign investment approval from BKPM. BKPM will require you to submit an investment plan of US$1,000,000 and deposit a minimum share capital of US$200,000.
- If required, Tetra Consultants will provide you with a nominee resident director. As always, our legal team will prepare a comprehensive nominee director agreement to be signed by all parties. This is to ensure that our nominee director does not intervene with your business. In order to complete the foreign company registration in Indonesia, the following requirements should be met:
- 2 shareholders of any nationalities
- 1 local resident director
- 1 commissioner of any nationality
- Equity capital of US$200,000
- Tetra Consultants recommends you to set up a PT PMA in Indonesia if you are planning to conduct businesses that are outside of the Negative Investment List. Although there is a huge paid-up capital before company registration, you can control the Indonesian company fully.
- A representative office is only allowed to conduct market research and marketing for the parent company. It is not allowed to sign contracts, sales agreements, and earn income in Indonesia. It will be a good option for foreign companies seeking to explore the market before settling in Indonesia.
- The operating license of a representative office is valid for two years. As such, some foreign investors prefer to set up a representative office to gain a local presence before establishing a PT or PMA in Indonesia. Do note that foreign companies are currently not allowed to set up branch offices.
Why choose to register your company in Indonesia?
Before you set up your company in Indonesia, it is important to understand the business landscape of the jurisdiction. This is to ensure that your newly established entity will be able to conduct business safely and legally while striving towards your long-term business goals.
- According to the Corruption Perceptions Index reported by Transparency International, Indonesia is ranked 85th least corrupt country worldwide. As such, it may result in delays during the company establishment process.
- Indonesia maintains good diplomatic relationships with its neighbouring countries.
- Indonesia is also one of the founding members of the ASEAN and East Asia Summit, as well as a member of the United Nations, the Organisation of Islamic Cooperation (OIC), and the World Trade Organisation (WTO).
- According to the Global Competitiveness Report published by the World Economic Forum, Indonesia scored 64.63%. As a result, Indonesia is the 50th most competitive economy in the world.
- Indonesia is the 16th largest economy in the world with a GDP per capita of $3,871.
- The official language in Indonesia is Bahasa Indonesian. As such, your company documents will not be in English. If required, Tetra Consultants will send you corporate documents that are translated by a certified translator.
- According to the EF English Proficiency Index, Indonesia has low proficiency in English and is ranked 13th in Asia. You may face some difficulties when speaking to local government authorities or Indonesian bankers.
- Indonesia has a population of around 268 million with a labour force participation rate of 69%. However, do note that most of these workers are in the manufacturing and agriculture sectors.
- Indonesia’s government has introduced multiple policies in an attempt to shift the country’s specialization from manufacturing and agriculture to technology. Some of these policies include “Making Indonesia 4.0”, which aims to leverage technology to enhance industrial capacity in five key areas (F&B, automotive, chemical, textile, and electronics).
- There are also plans to convert Indonesia into a tech hub focusing on artificial intelligence, 3D printing, and robotics. However, there is a limited number of highly skilled workers within the labour force.
- According to the latest World Bank annual ratings, Indonesia is ranked 73rd among 190 economies in the ease of doing business. This is due to the time-consuming company registration process as well as the requirement for local directors, commissioners, and shareholders for some entities.
- The government is not very open to foreign investors setting up companies in Indonesia. To do so, you are required to apply for BKPM approval. In addition, you will be subject to share capital of approximately US$250,000.
- According to the Environment Performance Index, Indonesia is ranked 113th in the world.
- Indonesia consists of thousands of islands located between Asia and Australia, providing a prime destination for both local and international tourists.
Contact us to find out more about Indonesia company registration. Our team of experts will revert within the next 24 hours.
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How much does it cost to register a company in Indonesia?
- The total engagement fees that you will be charged will depend on the services you wish to receive. Our services range from providing you assistance through the planning and strategizing process to the incorporation services. We provide additional services like resident director service, ensuring you are compliant with the law, and more.
- This total engagement fee will include the cost of registering a business in Indonesia. This cost depends on the type of business you wish to set up, your business activities, and more. We will further discuss this cost with you before we start the registration process.
What is the Indonesian registration number?
- An Indonesian registration number is a unique number that is assigned to all businesses registered in Indonesia to allow them to carry on their business while being recognized and protected under the law of the Indonesian government.
- You may wonder how to find Indonesian company registration number. To receive this number, you must apply to the Online Single Submission (OSS) System. After receiving approval, you will receive important documents including the Certificate of Formation, which would include the registration number.
- The Indonesia company registration number sample: AHU- 0041253.AH.01.11 so that you understand what to look for in the Certificate.
What is a good business to start in Indonesia?
- There are multiple business ideas to choose from to start a business in Indonesia. One of these ideas is to set up an e-commerce business. There was a trend towards e-commerce over the past years, however, the Covid-19 pandemic has accelerated the growth even further. The number of online shoppers has grown by 10 million to 85 million, after Covid-19. Moreover, the government has also issued policies that would further aid the e-commerce industry while ensuring high-quality services are provided. You can use pre-existing e-commerce websites such as Tokopedia, Shopee, and more or develop your own website. Moreover, such a business will not require high capital, thus being rather inexpensive to set up.
How can I start a small business in Indonesia?
- In order to start a small business in Indonesia, you must first decide on your business idea. The incorporation process remains the same for a small business. However, depending on your business structure, the capital requirement changes. To find out more information about how you can set up your small business in Indonesia, contact us.
Can foreigners invest in Indonesia?
- Yes, foreigners can invest in Indonesia. To establish a foreign direct investment (FDI) firm in Indonesia, the business should complete the required incorporation process. Moreover, there is a minimum amount of investment required which is approximately USD$700,000. Therefore, the minimum paid-up assets should be approximately USD$170,000.
What does PT mean in Indonesia?
- In Indonesia, PT is called Perseroan Terbatas which is a limited liability company. For a PT company, 100% of the firm must be owned by Indonesian citizens.
What is PT PMA in Indonesia?
- In Indonesia, PT PMA is called Penanaman Modal Asing which is a foreign-owned limited liability company.
What are the business opportunities in Indonesia?
- There are multiple opportunities for your business in Indonesia especially because of the improving infrastructure and business-friendly policies by the government. Some possible business opportunities can lie in the e-commerce industry or the professional services industry.
Can a foreigner open a business in Bali?
- Yes, foreigners can open a business in Bali. However, there are additional requirements they need to meet to set up a business. This includes getting a business visa initially and then applying for an immigrant work visa, KITAS. However, you will need a local business partner to sponsor your work permit.
- Contact us to get more information on how to open a business in Bali.
Should I set up a business in Batam?
- Setting up business in the Batam free trade zone will serve as a huge advantage for your business because of the various opportunities and business-friendly policies. This is the reason for top multinational companies in Indonesia, shifting their focus towards this region. To set up a business, you must apply for a Batam business visa which is valid for 60 days. During this period, you can start the incorporation process and also apply for a long-term visa.