How to Start a Business in Jakarta as a Foreigner

Jakarta, the bustling capital of Indonesia, is an attractive destination for foreign entrepreneurs looking to expand their business ventures. With its strategic location, growing economy, and welcoming business environment, Jakarta offers numerous opportunities. This guide will help you navigate the process of starting a business in Jakarta, from choosing the right business entity to understanding the registration requirements.

Why Jakarta is an Excellent Investment Destination?

Jakarta offers numerous opportunities for foreign investors due to its strategic location, growing economy, and favorable business environment. A PMA provides benefits similar to local companies and allows for various visa options. With the right guidance, starting a business in Jakarta can be a rewarding venture.

Also read: Why Do Business in Jakarta: 9 Great Advantages

Types of Business Entities in Jakarta

There are three main types of companies and business entities you can register in Jakarta:

1. PT (Perseroan Terbatas): Intended for Indonesian citizens, a PT is the most common type of company in Indonesia. It requires lower investment and paid-up capital compared to foreign-owned companies. A PT can employ foreign employees and even appoint a foreign director, though foreign directors cannot hold shares in the company.
2. PMA (Penanaman Modal Asing): This is a foreign investment company that allows 100% foreign ownership. A PMA requires a minimum investment of 10 billion Rupiah and at least two foreign investors. It offers the same benefits as a local company, including the ability to obtain visas and sponsor business visas.
3. Representative Office: An alternative for foreign companies looking to enter the Indonesian market. A representative office can conduct market research and marketing activities but cannot generate revenue or enter into contracts directly.

Also read: Corporate and Company Structure in Indonesia

Understanding a PT in Jakarta

A PT (Perseroan Terbatas) is suitable for local businesses and citizens. It offers a straightforward registration process with lower capital requirements. Foreign employees can be hired depending on the investment capital, and foreigners can be appointed as directors, although they cannot hold shares.

Owning a Company as a Foreigner with a PMA

Registering a PMA allows foreign entrepreneurs to fully own and operate a business in Indonesia. The minimum investment is 10 billion Rupiah, and the company must have at least two foreign investors. A PMA offers benefits similar to local companies, such as the ability to obtain investor and working KITAS visas and sponsor business visas.

Also read: 6 Advantages of Establishing a PMA Company in Indonesia

Procedures for Starting a Business in Jakarta

1. Pay Fee for Obtaining Clearance of Company Name
2. Obtain Clearance for the Company’s Name at the Ministry of Law and Human Rights: This step ensures your company name is unique and acceptable.
3. Pay Non-Tax State Revenue Fees for Legal Services
4. Arrange for a Notary to Notarize Company Documents
5. Make a Company Seal: Although not legally required, a company seal is needed for documentation.
6. Apply to the Ministry of Law and Human Rights for Deed of Establishment Approval: This process is done electronically.
7. Apply for the Certificate of Company Domicile: This certificate is obtained from the local municipality and is free of charge.
8. Apply for the Single Business Number (NIB): This replaces the SIUP and TDP and is done through the OSS portal.
9. Register with the Ministry of Manpower: Submit a labor report within 30 days of establishment.
10. Apply for Workers Social Security (BPJS Ketenagakerjaan) and Healthcare Insurance (BPJS Kesehatan): Registration is mandatory for all employees.
11. Obtain a Taxpayer Registration Number (NPWP) and VAT Collector Number (NPPKP): This is done through the tax office.

By understanding the requirements and procedures, foreign entrepreneurs can successfully navigate the process of setting up a business in Jakarta and take advantage of the city’s vibrant economic landscape.

Also read: Foreign Company Registration in Jakarta: 2024 Guide

Simplify the Company Registration in Jakarta with InvestinAsia

For a simpler company or business 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 business in Jakarta, you can start by contacting us for FREE consultation.

FAQs about Starting a Business in Jakarta

What are the common requirements to set up a PT?

Local shareholders need a valid Identity Card (KTP) and Tax ID number (NPWP). A company address is required, which can be a virtual office in some cases.

Can I expand my business in Jakarta without company registration?

It’s highly recommended to register a company if you plan to establish a business in Jakarta. Legal advisors can assist you in the process.

Also read: Top 20 Business Opportunities in Jakarta

As a foreigner, which type of company should I register in Jakarta?

Foreigners should register a PMA, which allows 100% foreign ownership and requires a minimum of two shareholders.

Can a foreigner do company registration in Jakarta?

Yes, a foreigner can register a company either individually or with a local partner.

What is a Representative Office in Jakarta and when do I need it?

A Representative Office is for foreign companies looking to enter the market for research or marketing purposes. It cannot generate revenue directly.

Can I conduct business in Indonesia from a virtual office?

Yes, for certain business fields, a virtual office can be used to register your business and receive mail. (check: 5 Most Suitable Businesses for Using a Virtual Office)

source: 

• kemlu.go.id
• letsmoveindonesia.com