Type of Company in Indonesia<\/strong><\/h2>\n![\"How](\"https:\/\/investinasia.id\/blog\/wp-content\/uploads\/2023\/05\/How-to-Register-a-Company-in-Indonesia-1024x695.jpg\")
How to register a company in Indonesia? (source: Pexels)<\/figcaption><\/figure>\nBefore discussing about how to set up a company in Indonesia, you need to know about the types of companies here.<\/p>\n
\n- \n
PT<\/strong><\/h3>\nPT is Indonesia’s acronym for “Perseroan Terbatas” or a Limited Liability Company<\/a>. This business type is the well-known top choice among foreign investors who want to establish their business in Indonesia. This is set up as part of a cooperative agreement, with a designated amount of authorized capital separated into shares.<\/p>\nThis type of company requires 1 local director, 2 local shareholders, and 1 international or domestic commissioner.<\/p>\n
Also read:<\/strong> What is Perseroan Terbatas (PT) in Indonesia?<\/a><\/strong><\/li>\n- \n
PMA<\/strong><\/h3>\nPMA is Indonesia’s acronym for “Penanaman Modal Asing”, also known as a Foreign Owned Company. It can be owned partially or wholly by foreign investors. This legal business type can only be established by foreign investors in Indonesia in compliance with the Foreign Capital Investment Law and with the Capital Coordinating Board of Indonesia’s approval.<\/p>\n
Also read:<\/strong> What is a PMA Company in Indonesia? Guide for Foreigner<\/a><\/strong><\/li>\n- \n
KPPA<\/strong><\/h3>\nKPPA stands for \u201cKantor Perwakilan Perusahaan Asing\u201d in Indonesian term or a representative office<\/a>. It is a business entity representing foreign companies requiring 3-4 weeks to complete the application process. This type of company is perfect for foreign shareholders who want to learn to do research in the Indonesian market or other business-related objectives.<\/p>\nThis company acts as purchasing and marketing agent for the parent company. Nevertheless, it is only allowed to operate in specific business sectors: gas, mining, oil, banking, trading, and services.<\/li>\n
- \n
KP3A<\/strong><\/h3>\nThis type of business entity serves as a market representative office of the foreign parent company in Indonesia. They have the authority to conduct business activities in the local market.<\/li>\n<\/ul>\n
Also read:<\/strong> The Types of Companies in Indonesia: 2023 Complete Guide<\/a><\/strong><\/p>\n <\/p>\n
The Requirements to Establish a Company in Indonesia<\/strong><\/h2>\nBelow are some of the requirements for the Indonesia business registry.<\/p>\n
PT PMDN<\/strong><\/h3>\nThe requirement needed to set up a PT are:<\/p>\n
\n- A commissioner<\/li>\n
- One director<\/li>\n
- Two shareholders<\/li>\n<\/ul>\n
The estimated amount of investment:<\/p>\n
\n- Small-sized business : 50 million Indonesian Rupiah<\/li>\n
- Medium-sized business : 500 million Indonesian Rupiah<\/li>\n
- Large-sized business : 10 billion Indonesian Rupiah<\/li>\n<\/ul>\n
Check our package for Local PT company set up<\/a>.<\/p>\nPT PMA<\/strong><\/h3>\nTo establish PT PMA, it requires:<\/p>\n
\n- A commissioner<\/li>\n
- One director<\/li>\n
- 2 shareholders<\/li>\n<\/ul>\n
The minimum investment plan value for All business operations is around 10 billion Indonesian Rupiah.<\/p>\n
Check our package for PMA registration in Indonesia<\/a>.<\/p>\nAlso read:<\/strong> How to Set Up PMA Company in Indonesia: Guide for Foreigner<\/a><\/strong><\/p>\nKPPA<\/strong><\/h3>\nHere is the requirement needed to create KPPA:<\/p>\n
\n- A minimum of 1 CEO is needed<\/li>\n
- The CEO should not be the director<\/li>\n
- Company address in a commercial building.<\/li>\n<\/ul>\n
Check our package for opening a KPPA in Indonesia<\/a>.<\/p>\nDocuments Required for Indonesia Company Incorporation<\/strong><\/h2>\n![\"How](\"https:\/\/investinasia.id\/blog\/wp-content\/uploads\/2023\/05\/how-to-open-a-company-in-indonesia-1024x683.jpg\")
How to register a company in Indonesia? (source: Pexels)<\/figcaption><\/figure>\nThese are the documents required for Indonesia company incorporation:<\/p>\n
PT & PT PMA (Foreign, Local Legal Body, and Personal Foreigner)<\/strong><\/h3>\nPT and PT PMA share the same document requirements. It consists of three types of documents: company, shareholder, and personal.<\/p>\n
Company Documents:<\/b><\/h4>\n\n- A document signed by each shareholder (Power of Attorney) for the aims of the submission document<\/li>\n
- Shareholder documents<\/li>\n
- The property rental agreement was made between the company and the building management.<\/li>\n
- Official statement of building domicile from management<\/li>\n
- A receipt for the payment of building and land tax (PBB) consisting of the approved payment for the recent year.<\/li>\n
- A certificate of ownership (IMB)<\/li>\n
- Minimal three photos from the company (Company workspace, corporate signage, and front desk)<\/li>\n
- A document certifying the company’s domicile, which has been acknowledged and confirmed by the building management.<\/li>\n
- Corporate letterhead and a sample of the company seal<\/li>\n<\/ul>\n
Documents for Shareholders:<\/b><\/h4>\n\n- A duplicate of the company’s Articles of Association and any amendments in either English or Bahasa Indonesia.<\/li>\n
- Company application certificate<\/li>\n
- The structure of the Executive Boards<\/li>\n<\/ul>\n
Documents for Directors and Commissioners:<\/b><\/h4>\n\n- For foreigners: Photocopy of a valid passport with a minimum of 18 months remaining before expiration and at least four blank pages<\/li>\n
- For local: Identification card & Taxpayer Identity Number<\/li>\n
- Family card<\/li>\n
- Stamp of Indonesian visa<\/li>\n
- Director’s residential statement from hotel or apartment<\/li>\n
- Current passport-sized photo with a red background for every Board of Director<\/li>\n<\/ul>\n
Also read:<\/strong> How to Set Up a PT Company in Indonesia: Guide for Foreigner<\/a><\/strong><\/p>\nKPPA<\/strong><\/h3>\nKPPA requires two types of documents: company and CEO documents.<\/p>\n
Company Documents<\/b><\/h4>\n\n- Company Articles of Association from the parent\/holding company consisting of the Board of Directors structure, shareholders, registered location, and scope of business.<\/li>\n
- Letter of Appointment (LoA) signed & sealed by the top executive of the holding\/ parent company<\/li>\n
- A letter of acceptance from the proposed Chief Representative Officer (CRO) for the position of CRO, duly signed and stamped with Material 6000 stamp duty if signed in Indonesia.<\/li>\n
- Letter of Intent (LoI) signed and sealed by the holding or parent company<\/li>\n
- Letter of Reference (LoR)<\/li>\n
- Other required documents are similar to the requirement to set up PT and PT PMA, such as an official statement of building domicile, recent receipt payment of building and land tax, IMB, three photos from the company, a document of company’s registered address, company letterhead, and a sample of the stamp of the company.<\/li>\n
- The documents needed for the Chief Representative Officer are all similar to those requirements for directors and commissioners for PT and PT PMA.<\/li>\n<\/ul>\n
Also read:<\/strong> What is Company Incorporation: Definition and Advantages<\/a><\/strong><\/p>\nStep-to-Step Procedure on How to Start a Company in Indonesia<\/b><\/h2>\n
Here are eight procedures required to set up a company in Indonesia as a foreigner. One to two months are estimated to complete the overall registration process.<\/p>\n
1. Register the name of the company<\/h3>\n
The first step is to apply for a company name. Ensure to create a distinct name from other companies, represent the company’s objective, and form a set of legible words. Avoid names that are identical to a name of a country, international agency, and government without legal authorization.<\/p>\n
Commonly, it takes one working day to obtain the approval. Subsequently, a unique code will be provided to reserve the name for up to 60 days.<\/p>\n
2. Request for Deed of Establishment<\/strong><\/h3>\nAfter submitting the bank account certificate and an authorized copy of the bank transfer advice, the Deed of Establishment can be filed online.<\/p>\n
When your application is approved, you will be granted official recognition of the company’s establishment. Once approved by the Ministry of Law and Human Rights, you may publicly announce the establishment within 14 days. Please kindly note that before submitting the documents, it is necessary to have them notarized.<\/p>\n
3. Apply for the Domicile Certificate of the Company<\/strong><\/h3>\nThe third step in the process is to obtain the Certificate of Company Domicile, which is mandatory for all limited liability companies in Indonesia. Moreover, this certificate plays a significant role in the process of registration of other files.<\/p>\n
4. Acquire a tax registration number (NPWP)<\/strong><\/h3>\nAfter you have completed the third step and have obtained a Certificate of Company Domicile, a valid tax ID (or NPWP in Indonesia<\/a>) must be acquired from the domestic tax authority for financial purposes.<\/p>\nHere are some documents you need to apply for tax ID:<\/p>\n
\n- Deed of Establishment<\/li>\n
- The director’s ID card<\/li>\n
- Letter of confirmation of business location<\/li>\n
- A domicile documentation for company taxation may be granted, but it is not obligatory.<\/li>\n<\/ul>\n
You can obtain the certificate of domicile from either the local government or the building administration in the area where the office is located. Along with a registration number, VAT (Value Added Tax) will be provided.<\/p>\n
Also read:<\/strong> Corporate and Company Structure in Indonesia<\/a><\/strong><\/p>\n5. Obtain your business ID number (NIB)<\/strong><\/h3>\nNIB<\/a> is a distinctive number that serves as your company’s identification, similar to an ID card. You can get the NIB from the Online Single Submission (OSS)<\/a>. The package will also include you registering to Badan Penyelenggara Jaminan Sosial (BPJS), Ketenagakerjaan, and BPJS Kesehatan.<\/p>\n6. Submit any other relevant certifications or authorizations<\/strong><\/h3>\nDepending on the type of business entity you want to establish, you need to prepare all other necessary supplementary documents or licenses before starting the business.<\/p>\n
7. Acquire work visas<\/strong><\/h3>\nThe next step on how to open a company in Indonesia is acquire visas. Before working in your company, both domestic and foreign workers will need to obtain work visas, known as KITAS. These visas are available in the form of either single-entry or multiple-entry business visas.<\/p>\n
8. Open a business bank account<\/strong><\/h3>\nOpening a corporate bank account will help to place the invested capital after combining your company.<\/p>\n
Upon completing these 8 steps, the company is considered registered. Nonetheless, there are three more processes you have to take: submitting a labor report, applying programs for workers’ social security, and obtaining insurance healthcare coverage for employees.<\/p>\n
Establishing a business requires a complex process. For further information on starting a company in Indonesia<\/a>, immediately visit InvestinAsia website. They consist of professionals who will provide you with guidance and support for you to begin the business in the most efficient ways.<\/p>\n
Before discussing about how to set up a company in Indonesia, you need to know about the types of companies here.<\/p>\n
- \n
- \n
PT<\/strong><\/h3>\n
PT is Indonesia’s acronym for “Perseroan Terbatas” or a Limited Liability Company<\/a>. This business type is the well-known top choice among foreign investors who want to establish their business in Indonesia. This is set up as part of a cooperative agreement, with a designated amount of authorized capital separated into shares.<\/p>\n
This type of company requires 1 local director, 2 local shareholders, and 1 international or domestic commissioner.<\/p>\n
Also read:<\/strong> What is Perseroan Terbatas (PT) in Indonesia?<\/a><\/strong><\/li>\n
- \n
PMA<\/strong><\/h3>\n
PMA is Indonesia’s acronym for “Penanaman Modal Asing”, also known as a Foreign Owned Company. It can be owned partially or wholly by foreign investors. This legal business type can only be established by foreign investors in Indonesia in compliance with the Foreign Capital Investment Law and with the Capital Coordinating Board of Indonesia’s approval.<\/p>\n
Also read:<\/strong> What is a PMA Company in Indonesia? Guide for Foreigner<\/a><\/strong><\/li>\n
- \n
KPPA<\/strong><\/h3>\n
KPPA stands for \u201cKantor Perwakilan Perusahaan Asing\u201d in Indonesian term or a representative office<\/a>. It is a business entity representing foreign companies requiring 3-4 weeks to complete the application process. This type of company is perfect for foreign shareholders who want to learn to do research in the Indonesian market or other business-related objectives.<\/p>\n
This company acts as purchasing and marketing agent for the parent company. Nevertheless, it is only allowed to operate in specific business sectors: gas, mining, oil, banking, trading, and services.<\/li>\n
- \n
KP3A<\/strong><\/h3>\n
This type of business entity serves as a market representative office of the foreign parent company in Indonesia. They have the authority to conduct business activities in the local market.<\/li>\n<\/ul>\n
Also read:<\/strong> The Types of Companies in Indonesia: 2023 Complete Guide<\/a><\/strong><\/p>\n
<\/p>\n
The Requirements to Establish a Company in Indonesia<\/strong><\/h2>\n
Below are some of the requirements for the Indonesia business registry.<\/p>\n
PT PMDN<\/strong><\/h3>\n
The requirement needed to set up a PT are:<\/p>\n
- \n
- A commissioner<\/li>\n
- One director<\/li>\n
- Two shareholders<\/li>\n<\/ul>\n
The estimated amount of investment:<\/p>\n
- \n
- Small-sized business : 50 million Indonesian Rupiah<\/li>\n
- Medium-sized business : 500 million Indonesian Rupiah<\/li>\n
- Large-sized business : 10 billion Indonesian Rupiah<\/li>\n<\/ul>\n
Check our package for Local PT company set up<\/a>.<\/p>\n
PT PMA<\/strong><\/h3>\n
To establish PT PMA, it requires:<\/p>\n
- \n
- A commissioner<\/li>\n
- One director<\/li>\n
- 2 shareholders<\/li>\n<\/ul>\n
The minimum investment plan value for All business operations is around 10 billion Indonesian Rupiah.<\/p>\n
Check our package for PMA registration in Indonesia<\/a>.<\/p>\n
Also read:<\/strong> How to Set Up PMA Company in Indonesia: Guide for Foreigner<\/a><\/strong><\/p>\n
KPPA<\/strong><\/h3>\n
Here is the requirement needed to create KPPA:<\/p>\n
- \n
- A minimum of 1 CEO is needed<\/li>\n
- The CEO should not be the director<\/li>\n
- Company address in a commercial building.<\/li>\n<\/ul>\n
Check our package for opening a KPPA in Indonesia<\/a>.<\/p>\n
Documents Required for Indonesia Company Incorporation<\/strong><\/h2>\n
How to register a company in Indonesia? (source: Pexels)<\/figcaption><\/figure>\n These are the documents required for Indonesia company incorporation:<\/p>\n
PT & PT PMA (Foreign, Local Legal Body, and Personal Foreigner)<\/strong><\/h3>\n
PT and PT PMA share the same document requirements. It consists of three types of documents: company, shareholder, and personal.<\/p>\n
Company Documents:<\/b><\/h4>\n
- \n
- A document signed by each shareholder (Power of Attorney) for the aims of the submission document<\/li>\n
- Shareholder documents<\/li>\n
- The property rental agreement was made between the company and the building management.<\/li>\n
- Official statement of building domicile from management<\/li>\n
- A receipt for the payment of building and land tax (PBB) consisting of the approved payment for the recent year.<\/li>\n
- A certificate of ownership (IMB)<\/li>\n
- Minimal three photos from the company (Company workspace, corporate signage, and front desk)<\/li>\n
- A document certifying the company’s domicile, which has been acknowledged and confirmed by the building management.<\/li>\n
- Corporate letterhead and a sample of the company seal<\/li>\n<\/ul>\n
Documents for Shareholders:<\/b><\/h4>\n
- \n
- A duplicate of the company’s Articles of Association and any amendments in either English or Bahasa Indonesia.<\/li>\n
- Company application certificate<\/li>\n
- The structure of the Executive Boards<\/li>\n<\/ul>\n
Documents for Directors and Commissioners:<\/b><\/h4>\n
- \n
- For foreigners: Photocopy of a valid passport with a minimum of 18 months remaining before expiration and at least four blank pages<\/li>\n
- For local: Identification card & Taxpayer Identity Number<\/li>\n
- Family card<\/li>\n
- Stamp of Indonesian visa<\/li>\n
- Director’s residential statement from hotel or apartment<\/li>\n
- Current passport-sized photo with a red background for every Board of Director<\/li>\n<\/ul>\n
Also read:<\/strong> How to Set Up a PT Company in Indonesia: Guide for Foreigner<\/a><\/strong><\/p>\n
KPPA<\/strong><\/h3>\n
KPPA requires two types of documents: company and CEO documents.<\/p>\n
Company Documents<\/b><\/h4>\n
- \n
- Company Articles of Association from the parent\/holding company consisting of the Board of Directors structure, shareholders, registered location, and scope of business.<\/li>\n
- Letter of Appointment (LoA) signed & sealed by the top executive of the holding\/ parent company<\/li>\n
- A letter of acceptance from the proposed Chief Representative Officer (CRO) for the position of CRO, duly signed and stamped with Material 6000 stamp duty if signed in Indonesia.<\/li>\n
- Letter of Intent (LoI) signed and sealed by the holding or parent company<\/li>\n
- Letter of Reference (LoR)<\/li>\n
- Other required documents are similar to the requirement to set up PT and PT PMA, such as an official statement of building domicile, recent receipt payment of building and land tax, IMB, three photos from the company, a document of company’s registered address, company letterhead, and a sample of the stamp of the company.<\/li>\n
- The documents needed for the Chief Representative Officer are all similar to those requirements for directors and commissioners for PT and PT PMA.<\/li>\n<\/ul>\n
Also read:<\/strong> What is Company Incorporation: Definition and Advantages<\/a><\/strong><\/p>\n
Step-to-Step Procedure on How to Start a Company in Indonesia<\/b><\/h2>\n
Here are eight procedures required to set up a company in Indonesia as a foreigner. One to two months are estimated to complete the overall registration process.<\/p>\n
1. Register the name of the company<\/h3>\n
The first step is to apply for a company name. Ensure to create a distinct name from other companies, represent the company’s objective, and form a set of legible words. Avoid names that are identical to a name of a country, international agency, and government without legal authorization.<\/p>\n
Commonly, it takes one working day to obtain the approval. Subsequently, a unique code will be provided to reserve the name for up to 60 days.<\/p>\n
2. Request for Deed of Establishment<\/strong><\/h3>\n
After submitting the bank account certificate and an authorized copy of the bank transfer advice, the Deed of Establishment can be filed online.<\/p>\n
When your application is approved, you will be granted official recognition of the company’s establishment. Once approved by the Ministry of Law and Human Rights, you may publicly announce the establishment within 14 days. Please kindly note that before submitting the documents, it is necessary to have them notarized.<\/p>\n
3. Apply for the Domicile Certificate of the Company<\/strong><\/h3>\n
The third step in the process is to obtain the Certificate of Company Domicile, which is mandatory for all limited liability companies in Indonesia. Moreover, this certificate plays a significant role in the process of registration of other files.<\/p>\n
4. Acquire a tax registration number (NPWP)<\/strong><\/h3>\n
After you have completed the third step and have obtained a Certificate of Company Domicile, a valid tax ID (or NPWP in Indonesia<\/a>) must be acquired from the domestic tax authority for financial purposes.<\/p>\n
Here are some documents you need to apply for tax ID:<\/p>\n
- \n
- Deed of Establishment<\/li>\n
- The director’s ID card<\/li>\n
- Letter of confirmation of business location<\/li>\n
- A domicile documentation for company taxation may be granted, but it is not obligatory.<\/li>\n<\/ul>\n
You can obtain the certificate of domicile from either the local government or the building administration in the area where the office is located. Along with a registration number, VAT (Value Added Tax) will be provided.<\/p>\n
Also read:<\/strong> Corporate and Company Structure in Indonesia<\/a><\/strong><\/p>\n
5. Obtain your business ID number (NIB)<\/strong><\/h3>\n
NIB<\/a> is a distinctive number that serves as your company’s identification, similar to an ID card. You can get the NIB from the Online Single Submission (OSS)<\/a>. The package will also include you registering to Badan Penyelenggara Jaminan Sosial (BPJS), Ketenagakerjaan, and BPJS Kesehatan.<\/p>\n
6. Submit any other relevant certifications or authorizations<\/strong><\/h3>\n
Depending on the type of business entity you want to establish, you need to prepare all other necessary supplementary documents or licenses before starting the business.<\/p>\n
7. Acquire work visas<\/strong><\/h3>\n
The next step on how to open a company in Indonesia is acquire visas. Before working in your company, both domestic and foreign workers will need to obtain work visas, known as KITAS. These visas are available in the form of either single-entry or multiple-entry business visas.<\/p>\n
8. Open a business bank account<\/strong><\/h3>\n
Opening a corporate bank account will help to place the invested capital after combining your company.<\/p>\n
Upon completing these 8 steps, the company is considered registered. Nonetheless, there are three more processes you have to take: submitting a labor report, applying programs for workers’ social security, and obtaining insurance healthcare coverage for employees.<\/p>\n
Establishing a business requires a complex process. For further information on starting a company in Indonesia<\/a>, immediately visit InvestinAsia website. They consist of professionals who will provide you with guidance and support for you to begin the business in the most efficient ways.<\/p>\n
- \n