To encourage business organization growth within Indonesia, the government is actively creating a conducive surroundings for strange investors through initiatives that reduce barriers. Today, the company registration process is simple and partly digitalised for ease of Indonesian visitor incorporation

As well the offset two steps that cannot be processed online, the residuum of the process tin can exist done online through the online arrangement known as Online Unmarried Submission (OSS).

Approval of incorporation documents takes almost x working days, after which you draft your articles of Association and utilize for business organization licenses. The overall incorporation/registration catamenia is between 2 and three months.

Options for Fully Strange Owned Indonesian Companies

A visitor is considered a foreign company if there is a strange investor or shareholder in the company. Such companies must become approving from the board coordinating capital investment earlier engaging in Indonesia'southward business concern activeness.

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

If you are a foreign business possessor who wants to annals your visitor for full ownership, you accept the post-obit options:

You lot can register your business organization company every bit PT (Perseroan Terbatas)

PT is a local term referring to a express liability visitor, and it is the virtually common foreign company pick that incorporated in Indonesia.
It exists in three categories:

The paid-upwardly 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 Visitor is easy to set up upwards, and it offers limited liability for well-nigh foreign entities and local entities as it supports work visas. PT companies require:

  • A foreign or local commissioner

You lot can register your company 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 Law and approved by the Majuscule Coordinating Board of Indonesia. PMA companies tin can exist converted into public companies subsequently.

You can register your company every bit KPPA

This is a foreign representative office, and it takes 3-4 working weeks of the registration procedure. This company registration type is suitable for investors who want to study the Indonesia market for research and business-related development purposes. They serve as the parent visitor's buying and selling agent. Still, it is restricted to certain business regions such as services, banking, trading, mining, gas, and oil.

You tin register your company as KP3A

This is a foreign trade representative office.

Alternative Company Types to Consider

There are 2 other company types yous tin can register in Indonesia, bated from the above mentioned.

1. Nominee Express Liability Company

When yous desire to begin operations immediately, you can register a company in Republic of indonesia using an Indonesian nominee. Registering this type of company enables you lot to bypass some foreign investment restrictions, shut deals fast, and obtain contracts.

2. Public company

This type of visitor is required to adhere to stringent visitor registration regulations. It has at to the lowest degree 300 shareholders and a paid-upwards capital of IDR billion. It is a requirement to be listed under the stock exchange.

What is the Process of Registering a Company in Indonesia

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

Choose Your Business Construction

Make up one's mind which business structure is suitable for you lot. After which, you volition have to assign or engage professional services such as corporate secretary, human resource, accounting, etc. To take intendance of your employees' requirements, ongoing filings, and bookkeeping.

Cull a unique company proper noun

The company name contains at least 3 different words. You are required to provide three options for your company proper name in English, Republic of indonesia or both. These iii proper name options save you the trouble of having to go back and recall of a proper noun if the outset option has been already in utilise.

Subsequently deciding, you will need to register the company's name at the Ministry of Law and Human Rights. Be sure to take your company name approved from the Notary Public equally it is a sign that your business is a legal entity.

Have a registered office

As soon as you lot are confirmed with your business formation, practise ensure that you have a registered office and a mailing address.

Register your company for a business license

The process of getting a business license varies with each business type. You lot are required to apply for a certificate of business registration and visitor registration documents from the offices of the Ministry of Trade.

Incorporation checker

How to Apply for a Business concern License

To register your visitor, submit your duly filled awarding at the Investment Analogous Board of Indonesia offices.

i. Obtain your visitor'south Deed of Establishment (DOE)

The other procedure in incorporating your company is obtaining DOE from the ministry of Constabulary and Human Rights using a duly filled application form. All your visitor documents are to exist notarised. The legalised documents are publicised inside 14 days in the Land Gazette.

2. Apply for SIUP (Surat Izin Usaha Perniagaan)

SIUP a permanent license for trading. You will utilize the receipt that you lot obtained while registering the company proper noun.

three. Apply for Business Registration Number

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

4. Accept your company registered with the revenue enhancement office for revenue enhancement compliance purposes

You will then exist issued the visitor's Tax Identification Number, which will exist sent to your company's address. You may as well be issued with a domicile certification for taxation purposes, merely the domicile is not mandatory. The domicile certificate is issued by the municipality or the building management in the office's locality. A registration number Value Added Taxation (VAT) collector number will too be given.

5. Obtain piece of work visas

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

half dozen. Fix a corporate bank account

The other activity you lot should consider when setting up an Indonesian visitor is opening a corporate banking concern account. This is where you deposit your paid-upwardly capital later incorporating your company.

At this signal, your visitor is considered registered, and you may operate as a registered business concern. However, you lot must nonetheless do the following as function of the process:

  • Yous are required to submit the labor report and other required documents at the Ministry of Labor within 30 days.

  • Utilize social security programs for workers. This program sensitises employees on workplace accidents, security afterwards 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 2021-10-27T17:11:47+08:00

The application and approvals for the diverse documents take around 1-2 months, sometimes upwardly to three months. However, this is a rough estimation equally every incorporation have dissimilar timeframes depending on the business.

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

As 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 Listing? Intern 2021-ten-27T17:09:50+08:00

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

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

Yes, foreigners can incorporate a local PT company through a local nominee arrangement. To control the visitor as a foreigner, yous can manage all the financials of the company by holding the company bank business relationship.