To encourage business growth inside Republic of indonesia, the government is actively creating a conducive surroundings for foreign investors through initiatives that reduce barriers. Today, the company registration process is simple and partly digitalised for ease of Indonesian company incorporation

Also the beginning two steps that cannot be processed online, the rest of the process can be done online through the online system known as Online Single Submission (OSS).

Approval of incorporation documents takes about x working days, after which you lot draft your articles of Association and apply for business organization licenses. The overall incorporation/registration period is between two and 3 months.

Options for Fully Foreign Owned Indonesian Companies

A company is considered a foreign company if there is a strange investor or shareholder in the company. Such companies must become approval from the board coordinating upper-case letter investment before engaging in Republic of indonesia's business organisation action.

The corporeality of capital invested in a particular business will define the business company's size and the eligibility to sponsor foreign employees' work permits. Indonesia allows full foreign ownership in industries that are non categorised under the Positive Investment List.

If you lot are a foreign business owner who wants to register your company for full ownership, you take the post-obit options:

You lot can register your business organization visitor as PT (Perseroan Terbatas)

PT is a local term referring to a limited liability company, and it is the most mutual foreign visitor option that incorporated in Indonesia.
It exists in iii categories:

The paid-up capitals vary depending on the category, and they are established upon the approval from the Majuscule Investment Analogous Board. Almost local and foreign investors with permanent residency apply this option.

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

  • A foreign or local commissioner

You tin register your visitor as PMA (Penanaman Modal Asing)

PMA companies tin can be fully or partially foreign-owned. Such a company is established under the stipulated regulations of Foreign Capital Investment Police and approved by the Majuscule Analogous Board of Indonesia. PMA companies can be converted into public companies after.

You can annals your company every bit KPPA

This is a foreign representative office, and information technology takes iii-4 working weeks of the registration process. This company registration type is suitable for investors who want to study the Indonesia market for enquiry and business-related evolution purposes. They serve as the parent company's buying and selling agent. However, it is restricted to certain business regions such as services, cyberbanking, trading, mining, gas, and oil.

You can register your company equally KP3A

This is a foreign trade representative office.

Alternative Visitor Types to Consider

In that location are 2 other company types you can register in Indonesia, bated from the in a higher place mentioned.

1. Nominee Limited Liability Company

When you want to begin operations immediately, you can register a visitor in Indonesia using an Indonesian nominee. Registering this blazon of visitor enables you to bypass some strange investment restrictions, close deals fast, and obtain contracts.

2. Public company

This type of visitor is required to adhere to stringent company registration regulations. It has at least 300 shareholders and a paid-upwardly upper-case letter of IDR billion. It is a requirement to exist listed under the stock commutation.

What is the Process of Registering a Company in Republic of indonesia

Business organization registration and incorporation depend on your company type, and this besides determines the registration elapsing. The post-obit are the procedures for one to register a visitor in Indonesia:

Choose Your Business Structure

Make up one's mind which business construction is suitable for y'all. Subsequently which, y'all volition accept to assign or engage professional services such as corporate secretary, human being resource, accounting, etc. To take care of your employees' requirements, ongoing filings, and bookkeeping.

Choose a unique company proper noun

The company proper noun contains at least three different words. You are required to provide three options for your company proper noun in English language, Republic of indonesia or both. These three name options save yous the trouble of having to get dorsum and think of a proper noun if the first option has been already in use.

After deciding, you will need to register the company'south name at the Ministry of Law and Human Rights. Be certain to have your company name canonical from the Notary Public as it is a sign that your business concern is a legal entity.

Accept a registered office

As presently as you are confirmed with your business formation, do ensure that yous have a registered role and a mailing address.

Annals your company for a business license

The procedure of getting a business organisation license varies with each business type. You are required to apply for a document of business registration and company registration documents from the offices of the Ministry of Trade.

Incorporation checker

How to Apply for a Concern License

To register your visitor, submit your duly filled application at the Investment Coordinating Board of Republic of indonesia offices.

1. Obtain your visitor'southward Deed of Establishment (DOE)

The other process in incorporating your company is obtaining DOE from the ministry building of Law and Human being Rights using a duly filled awarding grade. All your company documents are to be notarised. The legalised documents are publicised inside 14 days in the State Gazette.

2. Apply for SIUP (Surat Izin Usaha Perniagaan)

SIUP a permanent license for trading. You will use the receipt that y'all obtained while registering the visitor name.

3. Use for Business Registration Number

You volition be given a Business organization Registration Number, import license, community identification, and you will also go registered past the Badan Penyelenggara Jaminan Sosial (BPJS) Ketenagakerjaan and BPJS Kesehantan as part of the package.

iv. Have your company registered with the revenue enhancement part for tax compliance purposes

Y'all will and so be issued the company'south Tax Identification Number, which will be sent to your company's accost. Y'all may also be issued with a domicile certification for revenue enhancement purposes, just the domicile is not mandatory. The domicile certificate is issued by the municipality or the edifice management in the role's locality. A registration number Value Added Taxation (VAT) collector number will likewise be given.

5. Obtain work visas

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

half-dozen. Ready a corporate bank business relationship

The other activity you should consider when setting up an Indonesian visitor is opening a corporate banking company 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 concern. Nevertheless, you lot must still do the following equally part of the process:

  • You lot are required to submit the labor study and other required documents at the Ministry of Labor inside 30 days.

  • Apply social security programs for workers. This program sensitises employees on workplace accidents, security after retirement, security for alimony, and death.

  • Next, be insured for healthcare and employee welfare from the Badan Penyelenggara Jaminan Sosial (BPJS)

FAQs

How long does it take to register a company? Intern 2021-ten-27T17:eleven:47+08:00

The awarding and approvals for the diverse documents take around ane-two months, sometimes upwards to iii months. However, this is a rough estimation as every incorporation have different timeframes depending on the business organisation.

What is the latest update on the Positive and Negative Investment List? Intern 2021-10-27T17:x:32+08:00

Equally of 4 March 2021, the Positive Investment List was introduced to significantly reduce the number of restricted sectors that prevents foreigners to enter from 350 to 46.

What is the Positive and Negative Investment List? Intern 2021-10-27T17:09:fifty+08:00

The Negative Investment List was replaced by the Positive Investment Listing in 2021. The listing details the restricted sectors that the regime prohibits investors and entrepreneurs to invest in.

Are foreigners allowed to set upwards a local PT visitor in Indonesia? Intern 2021-10-27T17:08:58+08:00

Yep, foreigners can incorporate a local PT company through a local nominee arrangement. To control the company as a foreigner, you lot tin can manage all the financials of the company past property the company banking company business relationship.