Starting a business in Jakarta as a foreigner offers a wealth of opportunities. Whether you’re looking to establish an individual company or partner with locals, understanding the various business structures available is crucial. This guide will walk you through the essentials of foreign company registration in Jakarta, including the best types of companies for foreigners and the importance of seeking professional advice.
Can a Foreigner Register a Company in Jakarta?
Absolutely! Foreigners have the option to either establish an individual company or find a local partner from Jakarta. This flexibility allows for various business structures to accommodate different needs and preferences.
Also read: How to Start a Business in Jakarta as a Foreigner
Best Types of Companies for Foreigners
PMA (Penanaman Modal Asing)
For foreigners seeking 100% ownership, the PMA is the best option. A PMA requires:
- A minimum of two shareholders (which can be foreign individuals, corporations, or a combination).
- A fully paid-up investment of at least Rp10 billion.
PMA allows foreigners to have the same rights and responsibilities as local companies.
Also read; What is a PMA Company in Indonesia? Guide for Foreigner
PT (Perseroan Terbatas)
Foreigners cannot be named shareholders in a PT, as it is strictly for Indonesian citizens. However, foreigners can serve as directors, provided the company meets specific investment and size requirements.
Also read: Corporate and Company Structure in Indonesia
Representative Office
Representative offices are ideal for foreign companies exploring the Indonesian market. They are limited to activities like market research, promotion, and acting as agents for the foreign parent company. Key points include:
- No minimum capital requirement.
- Employment of both local and foreign employees.
- Licenses expire after two years and need renewal.
- Three categories: Foreign Representative Office, Foreign Construction Representative Office, and Foreign Trade Representative Office.
Also read; The Types of Representative Offices in Indonesia
Subsidiary Office
Subsidiary companies, formed as limited liability companies (LLCs), are separate legal entities that allow business owners to access the Indonesian market. They are subject to a corporate tax rate of 25%. Requirements include:
- At least two shareholders (foreign individuals or corporations, or a combination with local shareholders).
- At least one local director and one commissioner (foreign or local).
Also read: Representative Office vs. Subsidiary: What’s the Difference?
The Negative Investment List
Foreigners must be aware of the Negative Investment List, which protects certain industries from foreign ownership, either wholly or partially. Some businesses can only be owned under the PT structure. Given its extensive nature, consulting our team for specific advice is recommended.
Check: Indonesia Negative Investment List (DNI): Latest Update
Registering a Company Without a Legal Advisor
While it is legally possible to register a company without a legal advisor, the process involves numerous requirements and business categories, which can be complex. To ensure proper registration and compliance, working with a legal consultant is advisable.
Also read: Best Business Districts in Jakarta: Top Areas for Investment
Simplify the Company Registration in Jakarta with InvestinAsia
Registering a company in Jakarta as a foreigner involves various options and requirements. Whether you choose a PMA, PT, representative office, or subsidiary, understanding the legal and regulatory landscape is crucial.
For a simpler company registration in Jakarta, you can rely on the legal services from InvestinAsia. Our experienced professional team has helped more than 2,000 entrepreneurs start their businesses in Indonesia. Check out our various services on the following page:
- Foreign company / PMA registration in Jakarta
- Representative office registration in Jakarta
- Jakarta PT PMDN Set Up
- Jakarta Virtual office setup
- Business registration number in Jakarta
- Business Licenses in Jakarta
- Trademark Registration in Jakarta
- Franchise License in Jakarta
If you are interested in starting a company in Jakarta, you can start by contacting us for FREE consultation.
