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Company registration in Indonesia
A guide to different types of legal entities in Indonesia.
Company registration in Indonesia
Company registration in Indonesia
Company registration in Indonesia allows you to run full-scale operations and own up to 100% foreign capital in Indonesia; including earning revenue, hiring employees, issuing work permits etc.
Legal entity types available to foreign investors in Indonesia
- Limited liability company (PT PMA)
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Limited liability company allows you to earn revenue in Indonesia.
- General representative office (KPPA)
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Represent overseas company in Indonesia. KPPA cannot earn revenue in Indonesia but can hire employees and issue work permits.
- Representative office for trading (KP3A)
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This type of representative office can conduct trading activities for its parent company
- Construction representative office (BUJKA)
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Perform construction-related activities.
Process of opening a company in Indonesia
Incorporate in Indonesia
Key requirements to open a company in Indonesia
- At least two shareholders
- Shareholders can be both individuals and corporations. Depending on your business classification there might be a limit to the maximum foreign ownership.
- Minimum paid up capital of at least Rp. 10 billion (~700,000 USD)
- The capital is expected to be transferred to your corporate bank account after company registration is completed. Some industries have higher capital requirement.
- At least one director and one commissioner
- Directors and commissioners can but don’t have to be shareholders. The director is responsible for the operations of the company while the commissioner oversees the work of commissioners.
- Registered commercial address
- Your company must use a registered address that is in a commercial building which can be provided by Emerhub.
Frequently Asked Questions
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Foreigners are allowed to own companies in several business classifications with a few exceptions. These are mostly business activities that are seen as a threat to national security or small business areas that are protected from foreign competition.
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A PMA stands for foreign direct investment (FDI). Foreign-owned companies are referred to as PT PMAs (limited liability companies with foreign ownership). Note that any amount of foreign ownership makes the company a PMA.
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A “PT” stands for limited liability company. A company will be called “PT. My Company Name” regardless of whether the company has foreign ownership or not.
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CV is a sole proprietorship which is reserved for Indonesian nationals.
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Besides getting access to the business opportunities in the fourth largest country in the world, having a company allows you to open local bank accounts, hire employees, issue work permits to foreigners and even buy property.
We regularly use Emerhub for various licensing and permitting processes in Indonesia and the service has always been superb. For our latest project Chona and the rest of the Emerhub team have assisted us with a complex import licensing process, which was completed in the middle of the Covid-19 lockdown – far above and beyond expectations! We look forward to working together with the Emerhub team on future projects, and would not hesitate to recommend their services, which are unmatched in the Indonesian market.
They were very reliable and helpful in understanding the company registration process in Indonesia.
Get started with company registration in Indonesia
Tell us about your plans in Indonesia and our consultants will reach out to you to discuss the details.