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Corporate Establishment

There are 3 common types of companies in Indonesia:

  1. PT PMA (Perseroan Terbatas Penanaman Modal Asing): A foreign-owned limited liability company. Open to 100% foreign ownership but restricted to certain business sectors. Foreign ownership is regulated in the Indonesia’s Positive Investment List.
  2. PT (Perseroan Terbatas): A local-owned limited liability company. Must be 100% local ownership but nevertheless available to foreign investor through a Special Purpose Vehicle Company.
  3. Representative Office (RO): Company with sole purpose of marketing-related activities. Not allowed to conduct any activities generating income or profits.

The process ranges from 4 to 6 weeks. The length of the process depends on how quickly the owner can provide the required documents to us as your market-entry consultant. We can help you through the whole process from acquiring the company deed of establishment, getting tax identification number, and registering at the Online Single Submission (OSS).

  • Incorporation requires at least 2 shareholders.
  • Appoint at least a President Commissioner and a President Director.
  • Deed of Establishment (containing the Articles of Association) legalized by a Public Notary.
  • Legalization of the legal entity status by the Ministry of Law and Human Rights.
  • Business Identification Number (NIB) from OSS.
  • Business License (SIU) from OSS.
  • Letter of Domicile.
  • Tax Identification Number (NPWP) from the tax office.
  • Deposit paid-up capital to company’s bank account in Indonesia.

Foreign ownership is regulated in Indonesia’s Positive Investment List which details the percentage of ownership, type of business entity, business sector, and business line. There are 4 main categories of Indonesia’s Positive Investment List:

  • Priority Sectors
  • Business Fields With Specific Requirements Or Limitations
  • Corporations with Cooperatives & local MSMEs
  • Closed Sectors

It is very important to understand your company’s business line so we can help you determine the proper KBLI (Indonesia Standard Industrial Classification). Based on the correct KBLI we can help you determine the limits and opportunities of your business.

Foreigners who plan to work or earn an income in Indonesia must acquire a temporary stay permit known as KITAS (Temporary Stay Permit Card) and a work permit refer to as RPTKA (Foreign Worker Utilization Plan). Government Regulation number 34/2021 and Ministry of Manpower Regulation number 8/2021 aim to simplify the process of securing a work permit for foreigners.