Company Registration in Indonesia - Business Starting & Setup

Want to set up a firm in Indonesia? We can assist you in starting a business or in buying a shelf company in Indonesia with a full package of necessary documents, legal advice and follow-up support. Incorporation of a firm in Indonesia includes provision of a registered office (for at least 1 year in any of our service plans), an apostilled set of constitutional documents, secretarial services and assistance with compliance fee and pre-approval for opening an account in banks of Indonesia. The total price of company formation in Indonesia includes all necessary fees and charges for the first year of operation, as well as full one-year nominee service (package Optimum).

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Service packages Legislation Tax System Audit Services
Service packages
Express
Standard
Optimum
Company registration
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Legal address per year
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Secretarial services for the first year
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Fees and duties for the first year
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Apostilled bound set of incorporation documents
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Nominee service per year
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Bank Account Pre-approval
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Price
4 800 USD

4 800 USD

5 410 USD

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General corporate information

Legal system

Indonesia's legal system is based on the Romano-Germanic system of law, with a significant percentage of borrowing from the Dutch legal system. Corporate law is contained in the Company Law NUMBER 40 OF 2007, as amended from time to time.

Legal forms of companies in Indonesia

Indonesian law provides for the possibility of establishing the following organisational and legal forms:

Local company with liability limited by shares (PT PMDN),Company with foreign investment and liability limited by shares (PT PMA),Representation of foreign company (KPPA).

Choosing a name and registering a company

The most popular and common form is a company with foreign investment and liability limited by shares (PT PMA).

The time period for registering a new Indonesian company in the registry is 10 working days, but may be longer due to the need to obtain additional authorisation documentation for the planned activity.

The word "PT" is a mandatory element of the name indicating the legal form of the limited liability company. Every Indonesian company name must first be approved by the registration authority. The Latin alphabet may be used in the spelling of names. The name must contain a minimum of 3 words with at least 3 letters in each word. The registrar may reject any name that it considers unacceptable, that is the same or similar to the names of already registered Indonesian companies, or that implies illegal activities, militaristic orientation or government patronage.

Company registration procedure in Indonesia

The first step in registering a company in Indonesia is to obtain approval of its name from the Registrar of Companies. The Memorandum of Association is then signed by the shareholders in the presence of a notary public.

The Memorandum of Association defines the basic structure of the company, specifies its name, the purpose of incorporation, the amount of share capital and its division into shares of a certain value, as well as other provisions related to the structural organisation of the company, procedures for convening shareholders' meetings, passing resolutions and transfer of shares, including all possible restrictions. By special resolution, the company may amend or supplement the Memorandum of Association.

At the next stage of company registration, the Memorandum of Association and the necessary registration forms are sent to the Ministry of Foreign Investment for approval. Upon receipt of the registration confirmation from the Ministry, a request for a tax number is sent to the local tax office. At the same time, registration in the online company register (OSS) is carried out in order to obtain a Commercial Certificate Number (NIB), which will be used for most of the procedures.

Upon completion of registration, a commercial licence, proof of compliance with zoning regulations, and a certificate of compliance with environmental regulations are issued.

Registered office

Companies must have a registered office (registered office) in Indonesia. Copies of the company's corporate documents must be kept at this registered office address.

Seal

Indonesian law does not contain requirements for the existence, form and content of a seal. Each company can prepare a seal according to its own preferences. The most common reason for preparing a seal is to open a corporate account with foreign banks, most of which require a seal.

Redomiciliation

Redomiciliation of companies from and to Indonesia is not possible at this time.

COMPANY STRUCTURE

Directors

The minimum number of directors is one. It can only be a natural person. Data on the directors are entered in the online register. The law does not impose residency requirements, however, in order to avoid difficulties during on-site inspections by the state authorities, it is recommended that the director resides permanently in Indonesia.

Commissioner

All companies must appoint a commissioner, who may be an individual, whether resident or non-resident. There are no specific qualification requirements for the position of Commissioner. According to the law, a person may not fulfil the functions of a sole director and a commissioner at the same time.

Shareholders

An Indonesian company is required to have two or more shareholders, which can be individuals and legal entities, Indonesian residents or non-residents. General meetings of shareholders must be held at the business address annually, with the first meeting to be held within 18 months of the company's incorporation.

Authorised capital and shares

The authorised share capital of a company may have to be denominated in Indonesian Rupiah. The minimum amount of authorised share capital is IDR 10 billion. There is no stipulated timeframe for payment of authorised capital. The issuance of bearer shares or shares without nominal value is not authorised.

Frequently Asked Questions about Company Registration in Indonesia

How much does it cost to register a company in Indonesia?
The cost of opening a company in Indonesia depends on the type of company to be registered and the type of activity you will be engaged in. The minimum package of services costs USD 4800 and includes: registration of the company on a turnkey basis, lease of the registered office for a year and secretarial services, payment of all necessary duties and fees, as well as apostilled translation of the constituent documents.
Can foreigner open company in Indonesia?
Yes, a foreigner can open a company in Indonesia. However, there are certain regulations and procedures that must be followed. Foreigners must appoint a local Indonesian as a director of the company and are required to have a minimum capital investment of 10 billion Indonesian Rupiah (approximately US$700,000). In addition, the company must obtain necessary licenses and permits for its business activities, and adhere to the laws and regulations in Indonesia. It is advisable to consult with a local lawyer or business advisor to ensure that all requirements are met.
Is Indonesia good for international business?
Indonesia is considered a potential market for international business due to its large population and growing economy. The country is home to a number of industries, including manufacturing, agriculture, and natural resources, which provide opportunities for foreign businesses. In addition, the Indonesian government has taken steps to improve the business environment, including reducing red tape and improving infrastructure. However, doing business in Indonesia can also pose challenges, such as complex regulations and cultural differences. Ultimately, whether Indonesia is good for international business depends on the specific needs and goals of each individual company.
Is Indonesia an offshore?
No, Indonesia is not considered an offshore jurisdiction. Offshore jurisdictions are typically characterized by low or no taxes, a favorable business environment, and strong confidentiality and privacy protections. Indonesia, like most countries, has a tax system in place and regulations for businesses that operate within its borders. However, Indonesia offers various incentives for foreign investment and has a growing economy, making it an attractive destination for international business.
Does Indonesia give citizenship to foreigners?
No, Indonesia does not offer citizenship to foreigners. Indonesian citizenship is only acquired by birth in the country or through descent from an Indonesian parent. However, foreigners may be eligible for long-term residency permits, which can provide certain benefits and rights in Indonesia, but citizenship is not among them.

Core Services and fees for the formation of a company in Indonesia

Incorporation

Price4 800 USD

including the preparation and provision of the originals of the company's founding documents, not including the compliance fee

License selection, risk assessment

Price590 USD

Corporate legal services

Price3 500 USD

including the extension of services for the lease of the legal address (starting from the second year), not including the compliance fee

Delivery of documents by courier mail

Price250 USD

DHL or TNT, at cost of a Courier Service

Provision of a virtual office

Price2 500 USD

Services for opening a corporate account

Price2 500 USD

Compliance fee in Indonesia

Compliance fee is payable in the cases of: companies registration, renewal of a company, liquidation of a company, transfer out of a company, issue of a power of attorney to a new attorney, change of director / shareholder / BO (except the change to a nominee director / shareholder), signing documents

Basic

Price350 USD

simple company structure with only 1 physical person

For legal entity in structure under GSL administration

Price150 USD

additional compliance fee for legal entity in structure under GSL administration (per 1 entity)

For legal entity in structure not under GSL administration

Price200 USD

additional compliance fee for legal entity in structure NOT under GSL administration (per 1 entity)

For client with high risk Status

Price450 USD

Signing documents

Price100 USD

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