Starting a business in Batam, Indonesia, offers unique advantages for both local and foreign investors. But before you launch operations, you must meet a series of legal and administrative requirements—especially depending on the company type: PT PMA (foreign-owned), PT PMDN (locally owned), or a Representative Office.
This guide breaks down the full process to help you register your business in Batam efficiently and compliantly.
Also read: Complete Guide to Doing Business in Batam: Advantages, Strategic Locations, Potential Sectors
Requirements for Specific Types of Companies
PT PMA (Foreign-Owned Company)
Ideal for international investors, PT PMA allows up to 100% foreign ownership in most sectors.
Key Requirements:
- Minimum capital of IDR 10 billion
- Minimum two shareholders (one must be foreign)
- One director and one commissioner
- A physical office location in Indonesia is required for registration; virtual office addresses are not permitted.
Registration Timeline:
4–6 weeks (can be expedited in 8–10 working days via OSS)
Mandatory Documents:
- Foreign shareholder passport copy
- Articles of Association (in Bahasa Indonesia)
- Proof of capital
- Business domicile letter
- Power of attorney (if applicable)
Want to own a company in Batam as a foreign investor?
Let InvestinAsia handle your PT PMA registration—from capital structuring to OSS licensing—so you can focus on growing your business without the red tape.
Also read: 6 Advantages of Establishing a PMA Company in Indonesia
PT PMDN (Local-Owned Company)
Suited for Indonesian citizens or legal entities.
Ownership: 100% Indonesian
Capital Tiers:
- Small: IDR 50–500 million
- Medium: IDR 500 million–10 billion
- Large: Above IDR 10 billion
Processing Time: ~30 business days
Ready to build a fully Indonesian-owned business in Batam?
Start with InvestinAsia’s PT PMDN registration service for smooth, end-to-end setup—perfect for local entrepreneurs looking to scale fast.
Also read: 6 Types of PT Companies in Indonesia: A Complete Overview
Representative Office (KPPA)
A Representative Office is the best fit for companies testing the market or supporting regional operations without revenue generation.
Allowed Activities:
- Market research
- Business development
- Strategic networking
Prohibited Activities: Sales, invoicing, or revenue generation
Timeline: ~10 working days
Required Documents: Letters of intent, appointment, and reference from parent company, plus executive’s passport
Looking to explore the Indonesian market without running full operations?
Get started with InvestinAsia’s Representative Office setup service—ideal for market research, business development, and regional presence.
Also read: PT vs PMA vs KPPA Indonesia, What’s the Differences?
Key Legal Requirements for All Company Types
Business Identification Number (NIB)
A unified permit replacing multiple licenses. Required for all business activities.
Validity: Indefinite as long as business continues
Also read: What is NIB in Indonesia?
BP Batam Licensing for FTZ Entities
Companies operating inside Batam’s Free Trade Zone must apply for special Area Business Permits via IBOSS.
Benefits:
- VAT and import duty exemptions
- Simplified logistics and customs processing
Planning to operate inside Batam’s Free Trade Zone?
Use InvestinAsia’s Batam business licensing service to navigate BP Batam and IBOSS approvals with zero hassle.
Is a Virtual Office Legal for Company Registration in Batam?
For company registration, a physical office is mandatory. However, once registered, many firms use virtual offices for flexible operations—especially startups or companies not requiring daily presence.
Need a reliable address after registration or for support functions?
vOffice Batam offers:
- Legally recognized business address
- Mail handling
- Receptionist service
- Access to meeting rooms
- Domicile certificate
Explore vOffice Batam’s Virtual Office packages—with legal address, mail handling, and receptionist service in premium locations like Nagoya Gateway and Harbour Bay.
Work with Professionals Who Understand the Regulatory Landscape
Registering a company in Batam involves navigating national and regional regulations, understanding Free Trade Zone nuances, and meeting capital and licensing requirements. The process can be complex—particularly for international investors.
InvestinAsia simplifies this process with tailored services for Company Set Up in Indonesia.
Contact us now for FREE consultation and get a special packages!
FAQs
Is it possible for a foreigner to fully own a company in Batam?
Yes, through a PT PMA structure, which allows up to 100% foreign ownership in most sectors.
Is virtual office allowed for registration?
No, a physical office is mandatory to legally register a company. But virtual offices can be used for operations after registration.
How long does company registration take in Batam?
PT PMA takes around 4–6 weeks. Using OSS can reduce it to under 2 weeks if all documents are ready.
What’s the cost to register a PT PMA?
Professional fees range from USD 4,800 to USD 10,740, plus minimal government fees.
Who handles licensing in Batam Free Trade Zone?
Local licensing for businesses within Batam’s Free Trade Zone is administered by BP Batam through the IBOSS platform.
