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Company Registration in Indonesia Made Simple
Set up your company in Indonesia with clear guidance at every stage. CPT Corporate handles company formation, business licensing, and ongoing compliance so you can focus on expanding your market.
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Choose the Right Legal Entity for Business in Indonesia
Our corporate specialist with 10+ years of experience on company registration in Indonesia. We help foreign investors navigate entity selection, permits, business licenses, and compliance requirements with greater clarity.
A Foreign Liability Company (PT PMA) is a limited liability company established under Indonesian law with foreign ownership. It allows foreign investors to conduct business activities in Indonesia, subject to the Positive Investment List which regulates the sectors open to foreign investment. PT PMA provides full legal protection and enables businesses to hire local and foreign employees, own assets, and enter contracts under Indonesian law.
It is called a foreign-owned company in Indonesia if any foreign individual or foreign entity holds share(s) in an Indonesian company. A foreign-owned company is often called PT PMA which stands for Perseroan Terbatas Penanaman Modal Asing or the limited liability company (LLC) of foreign investment.
Most business sectors are open to foreign investors, although some may impose foreign ownership limits or remain closed to foreign investment. A PT PMA can conduct commercial activities, generate revenue, hire employees, enter into contracts, hold eligible assets, distribute dividends, and sponsor eligible foreign employees for work and stay permits.
Further, the company can operate its business and can do the activities as below:
- To obtain a business license or import and export license
- Buy property such as land and building in the name of the company
- Hire staff
- Open a bank account
- Doing the sales and marketing
- As a sponsor to obtain a work permit and stay permit for the foreign employee(s)
- To separate the liabilities of the business with the parent company
- To register your products (cosmetics, food, medicine) so that you can sell your products within Indonesian jurisdiction
- To submit a bidding proposal to your Indonesian customers or Indonesian government
The following requirements must be met to register a PT PMA in Indonesia:
IDR 2,500,000,000 (two point five billion Rupiah), or approximately USD 150,000 (one hundred fifty thousand US Dollars). The company must also meet the applicable foreign investment value requirements. The required capital and investment structure should be stated in the company documents and OSS system.
IDR 10,000,000 (ten million Rupiah) for each foreign shareholder.
Shareholders can be individuals and/or corporations. Most businesses are open for foreign investors, but some sectors may have a maximum ownership limit and/or may be closed to foreign business.
Minimum of 1 (one) Director and 1 (one) Commissioner. The director and commissioner can also hold shares in the company (acting as shareholders). Director and commissioner cannot be the same person.
Do You Need a Local Director? You have to appoint a local director if the appointed foreign director does not obtain a work permit & stay permit in Indonesia. Work permit and stay permit of the foreign director are crucial as they are required to open a corporate bank account and file tax reporting. If the foreign director does not plan to obtain a work permit, you must hire a local director.
A local director can support administrative activities, including signing documents and handling operational matters when the foreign director is unavailable. Requirements for opening a corporate bank account may vary depending on the bank and the appointed director’s immigration status.
The address must be in a commercial area.
The name shall consist of 3 words. The words cannot contain terms meaning Corporation, Company, Limited Liability, Incorporation, or any similar name. Example of Indonesian company names: PT Tata Boga Indonesia, PT Jaya Success Indonesia. After you select the name, you must check whether it is available and not similar to other registered Indonesian companies.
No physical presence is required during the registration of company in Indonesia. The steps to register the company in Indonesia are below:
License Categories by Risk:
1. Low Risk → NIB
2. Medium Risk → NIB and Standard Certificate (no verification required)
3. Medium-High Risk → NIB and Verified Standard Certificate
4. High Risk → NIB and Permit (izin)
Certain business classifications may also need additional licenses. For example, e-commerce businesses need a PSE Certificate, and businesses selling products consumed by humans need BPOM registration.
Other options to consider
Setting up a PT PMA may not be the only option for entering the Indonesian market. The following alternatives may suit businesses that are not ready to complete full company registration in Indonesia.
Local Company Service
The minimum paid-up capital to establish a PT PMA is quite high. But this requirement does not apply to Indonesian companies whose shares are held 100% by Indonesian. Therefore, if you still need a legal entity and do not want to inject the minimum paid-up capital of PT PMA, you can consider using local company service. Under this service, business activities are carried out through an Indonesian company in accordance with Indonesian company law and applicable compliance requirements. An annual service fee applies.
The employer of the Record
The employer of the record is a service where we, CPT Corporate, hire your talent or staff under our company but they will work on behalf of you. The employer of the record is one of the options for you if you do not want to open an entity in Indonesia, but you need someone to take care of the business. We will provide you the services with the payroll, transfer the employee salary, sign an employment contract, and advise you on the Indonesian employment law.
Post-setup compliance
After you register a company in Indonesia, completing the business registration process is only the beginning. Your company must continue to meet the following corporate, tax, investment, and employment obligations:
Ready to Launch Your Business in Indonesia?
Let our experts handle your business registration, paperwork, and ongoing compliance so you can focus on growing your market. Register a company with CPT Corporate and start your business in Indonesia with greater confidence.
