Sun. May 26th, 2024

It takes considerable planning, decision-making, and compliance with regulatory regulations to register a company in Indonesia. The size of the Indonesian market is the main factor luring foreigners to register businesses there. This article about Indonesian company registration is definitely worth a read if you plan to start a business in the country.

Types Of Companies In Indonesia 

Local Company (PT) Registration

In Indonesia, a local company is the most prevalent type of commercial entity. For a foreigner to establish a PT in Indonesia, they must have a minimum of 2 native Indonesian shareholders, 1 director, and 1 commissioner because this sort of corporate company is only meant for locals.


  • 1 director
  • 1 commissioner
  • 2 local shareholders
  • As a registered business address, virtual offices are acceptable.

Read more about Local PT company here: 

PMA (Penanaman Modal Asing) Registration

PMA businesses may have complete or partial foreign ownership. Such a firm is founded in accordance with the Foreign Capital Investment Law’s requirements and has the Capital Coordination Board of Indonesia’s approval. PMA firms may subsequently become public companies.


  • 1 director
  • 1 commissioner
  • Local registration address in a building with businesses

Read more about PMA companies here:

KPPA Registration

The registration procedure for this overseas representative office takes 3–4 working weeks. Investors that want to research and build their businesses in Indonesia should choose this sort of company registration. They act as the buying and selling agent for the parent corporation. It is only permitted in specific commercial sectors, including as services, finance, trading, oil and gas.


  • must hire a minimum of one chief representative officer.
  • Directorship by the chief representative officer is disallowed.
  • Local registration address in a building with businesses

Read more about KPPA company here:

Registration Timeline and Procedure

Within one or 1.5 months, your firm can be registered. As soon as your registration is complete, you can start doing business. By delivering your Deed of Establishment and every completed business licence to the desired bank, you can open a bank account in the name of the firm.

The OSS system can be used to launch the majority of enterprises in Indonesia, which facilitates a rapid and simple approach. However, not all processes are supported by the OSS system – some applications are done physically over the counter. It is best to reach out to a local or regional expert like Paul Hype Page Indonesia to get it done without hassle.

The proper classification for your company must be chosen as a crucial initial step. By doing this, you can avoid future issues.

  • Step 1: Obtaining the Deed of Formation and Approval of the Business Name
  • Step 2: Domicile processing in the Local District Office
  • Step 3: Filing Your Taxes
  • Step 4: Obtaining a business identification number .
  • Step 5: Obtaining an operational and commercial licence

Letter of Domicile

A letter of domicile must be obtained from the local government office for a firm residing outside of Jakarta. You must then submit an application for a letter of domicile to the local government after receiving the deed of establishment.

A domicile letter must include the following details:

  • Date of Birth
  • Birth Place
  • Religion
  • Nationality
  • Passport Number
  • Gender
  • Job
  • Address

The following papers must be ready:

  • A duplicate of the establishment deed
  • A duplicate of the director’s id card
  • A letter of recommendation from the owner or lessee of the property
  • A copy of the business office lease or rental agreement
  • A copy of the landlord’s most recent property tax receipt
  • A duplicate passport
  • A picture of the director against a background of red
  • If your office is located in a residential area, a letter of recommendation from the local authority figure
  • A picture of the workspace with the business name in front of the door
  • From the Ministry of Justice and Human Rights, a letter of approval

Online Registration

For online registration, follow these steps:

  • You will get a verification email in your inbox after creating an account with your email address.
  • Fill out your account profile and follow the activation instructions.
  • Fill out the registration form after activating your account.
  • You can submit the necessary documents to your local tax office or upload them using the online registration application. 
  • Within 14 working days of completing the online registration, you must receive your documents if you mail them in.
  • The tax office will then issue an electronic receipt, a taxpayer identification card, and a tax registration certificate one day after your receipt is issued and mailed to you.

If you are looking to start a business in Indonesia, you can count on local experts in Paul Hype Page Indonesia who have presence in multiple jurisdictions in Asia to get started. 

By Syler