Foreign companies have many options when considering expansion, catering to their specific needs and objectives. Among these options, two common and widely chosen paths are establishing a Foreign-Owned Company (PT PMA) or a Representative Office.
Understanding the advantages and disadvantages of each company registration option will enable foreign companies to make an informed decision that will lead them to success in the Indonesian market.
Having served thousands of global entrepreneurs and companies in Asia Pacific, Europe, and North America, Incorp Indonesia’s team of experts will ease the process of business setup in Indonesia for you. From business process and outsourcing to compliance and secretarial services, our team is ready to make business registry and operations in Indonesia hassle-free.
Company registration options for foreign investors in Indonesia
- Allows profit-generating business activities
- Allows up to 100% foreign ownership
- Ideal for business sectors that are open for foreign investment
- Minimum two shareholders (corporate/individual)
- Minimum one local director
- Must have at least one commissioner (can be a foreigner with a valid work permit)
- Minimum IDR 10 billion of investment
- At least IDR 10 billion should be provided as a paid-up capital
- Full control of business
- Eligible to sponsor work and stay permit for foreign employee
- Not allowed to generate financial income
- Allows up to 100% foreign ownership
- Ideal for testing the waters before setting up a fully-fledged company
- Works best for non-sales activities
- No shareholder or director required
- One chief executive is sufficient
- No capital is required
- Low incorporation cost
- Eligible to sponsor work and stay permit for foreign employees
- Not allowed to perform any sales and purchase activities
- Allows up to 100% foreign ownership
- Ideal for liaising, promotional, and market survey activities
- No shareholder or director required
- One chief executive is sufficient
- No capital is required
- Low incorporation cost
- Eligible to sponsor work and stay permit for foreign employees
- Can open a branch office in any part of Indonesia
- Permitted to engage in large-scale construction projects within a joint operation with a Local PT
- Best suited for the larger global construction companies
- No local shareholders are required
- No capital is required
- Low incorporation cost
- Allowed to work on a construction project in a joint operation with a Local PT without acquiring a construction license (SIUJK)
- Eligible to sponsor work and stay permit for foreign employee
The process of setting up a company in Indonesia
Consultation
Talk to our experts about your expansion objectives in Indonesia.
Collecting Required Documents
Provide us with all the documents required for company registration.
Document Review
We ensure your submitted documents are aligned with the latest regulations.
Drafting
We will draft your application letter addressed to related government bodies.
Documents Submission
We file all your documents to the related government bodies on your behalf.
Registration of Indonesian Tax ID (NPWP)
An NPWP is required to secure other business licenses, open a bank account, and fulfilling tax obligations.
Obtain Indonesian Business Identification Number (NIB)
A NIB is required for a company to conduct immediate business operations.
Deed of Incorporation (For PT PMA)
A Notary should draft and legalized your Deed of Incorporation.
Approval of Legal Entity (For PT PMA)
After submission of Deed of Incorporation by the notary, the Ministry of Law and Human Rights will give approval.
Securing Other Licenses (For PT PMA)
Some sectors and business activities require more specific business licenses and permits. This process can from 7 to 20 days, depending on your business sector.
