Guide to Company Registration in Indonesia

Basic incorporation requirements

Each company type has different requirements to comply for a set up:

Types of companies in Indonesia

There are six different company types available in Indonesia:

1. Perseroan Terbatas (PT)

Perseroan Terbatas (PT) refers to a limited liability company. There are three categories for this company type, Small-sized, Medium-sized, and Large-sized PT Company.

The three-company type has different requirements for the paid-up capital and established upon approval from the Capital Investment Coordinating Board.

2. Perseroan Terbatas Penanaman Modal Asing (PT PMA) / Penanaman Modal Asing (PMA)

Perseroan Terbatas Penanaman Modal Asing (PT PMA) / Penanaman Modal Asing (PMA) companies can be 100% or partially owned by foreigners. The company follows stipulated regulations of Foreign Capital Investment Law and needs approval from the Capital Coordinating Board of Indonesia.

3. Kantor Perwakilan Perusahaan Asing (KPPA)

Kantor Perwakilan Perusahaan Asing (KPPA) is a foreign representative office that takes 3-4 working weeks to register. This company type is suitable for foreign investors to conduct research and business development in the Indonesian market. However, KPPA set up is restricted in services, banking, trading, mining, gas, and oil industry.

4. Representative office for trading (KP3A)

KP3A is a foreign trade representative office.

5. Nominee Limited Liability Company

You can register to engage an Indonesian nominee if you want to start your business immediately. This company type allows you to bypass certain foreign investment restrictions that help to close deals faster.

6. Public company

A public company must adhere to stringent company registration regulations. The company must have at least 300 shareholders and a paid-up capital of IDR billion. A public company is a requirement to be listed under the stock exchange.

Procedures to register a company in Indonesia

The company type will determine the business registration, incorporation, and registration duration. The following are the procedures to register a company in Indonesia:  

1. Choose Your Business Structure

Select the business structure that is suitable for you and indicates the business activity of the company.

2. Choose a unique company name

The company name must contain at least three different words. You should provide three options for the company name in English, Bahasa Indonesia, or both.

The name should be registering under the Ministry of Law and Human Rights and approved by Notary Public.

3. Have a registered office

You must have a registered office and a mailing address.  

4. Register your company for a business license

The process of getting a business license varies with each business type. The company must obtain a certificate of business registration. The company should get the registration documents from the offices of the Ministry of Trade.

Post-incorporation procedures

After registering your business, there are post-incorporation procedures:

Conclusion

This press release provides an overview of the available company types, requirements, and procedures for Indonesia incorporation. It is a good guide for individual who does not know about setting up a business in the Indonesia market. Each company type has different requirements to fulfill. Thus, business owners should be clear of the requirements to prevent registering for the wrong venture.

To get comprehensive information on this topic, please refer to Guide to Company Registration Indonesia

If you need someone to consult for a business opportunity, feel free to WhatsApp +65 8483 3084.

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