How to Register a Company in Indonesia? (2024)

To encourage business growth within Indonesia, the government is actively creating a conducive environment 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 two steps that cannot be processed online, the rest of the processes can be done online through the online system known as Online Single Submission (OSS).

Approval of incorporation documents takes about 10 working days, after which you draft your articles of Association and apply for business licenses. The overall incorporation/registration period is between two and three months, however, this is on a case-by-case basis.

A company is considered a foreign company if there is a foreign investor or shareholder in the company. Such companies must get approval from the board coordinating capital investment before engaging in Indonesia’s business activity.

The amount of capital invested in a particular business will define the business company’s size and the eligibility to sponsor foreign employees’ work visas. Indonesia allows total foreign ownership in industries that are not categorised under the Positive Investment List.

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

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

This type of Business Company is easy to set up, and it offers limited liability for most foreign entities and local entities as it supports work visas. PT companies require:

There are 2 other types of business entities you can register in Indonesia, aside from the above mentioned.

Here are some tips when choosing acompany name. Do not select names that:

• Are similar to existing companies
• Are identical or similar to any name of a state, government, or an international agency without official approval
• Does not conform to the purposes/ objectives/ activities of the company
• Consist of a set of numbers, letters, or figures that do not form any words

Step 2: Apply for Deed of Establishment

The Deed of Establishment is to be applied online, together with the submission of the certificate of the bank account and official copy of the bank transfer advice. If the application is successful, you will receive a legalisation on the establishment of the company and can announce the establishment within the following 14 days from the Ministry of Law and Human Rights. All documents are required to be notorised before submission.

Step 3: Apply for the Certificate of Company Domicile

The next step is to apply for the Certificate of Company Domicile where all Indonesian limited liability companies are required to hold.

Step 4: Obtain a tax registration number (NPWP)

After getting your Certificate of Company Domicile, you will need to obtain a valid tax ID for financial purposes with the local tax authority. The documents required for this application include:

• Deed of Establishment
• Identity card of the director
• Statement letter to confirm place of business

You may also be issued with a domicile certification forcorporate taxation, but the domicile is not mandatory.

The domicile certificate is issued by the municipality or the building management in the office’s locality. A registration numberValue Added Tax (VAT)collector number will also be given.

Step 5: Get your business identification number (NIB)

The NIB is obtained from the Online Single Submission. This is a unique number that is assigned to your company as a form of identification (like an identification card!). You will also get registered by the Badan Penyelenggara Jaminan Sosial (BPJS) Ketenagakerjaan and BPJS Kesehantan as part of the package.

Step 6: Apply for other relevant documents and licenses

Different types of businesses require variousbusiness licenses. Depending on the nature of your business, you will need to apply for licenses before you are allowed to start your operations.

Step 7: Obtain work visas

Both the local and foreign employees in your company will requirework visas (KITAS)before working in your company. These visas come in the form of single-entry and multiple-entry business visas.

Step 8: Set up corporate bank account

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

At this point, your company is considered registered, and you may operate as a registered business. However, you must still do the following as part of the process:

• You are required to submit the labor report and other required documents at the Ministry of Labor within 30 days.
• Apply social security programs for workers. This program sensitises employees on workplace accidents, security after retirement, security for pension, and death.
• Next, be insured for healthcare and employee welfare from the Badan Penyelenggara Jaminan Sosial (BPJS)

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