Why Your Entity Choice Determines Your Registration Path<\/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>\nEvery company registration in Indonesia passes through the OSS (Online Single Submission) portal at oss.go.id at some point. But two things need to be locked in before you get there: the legal entity type and the business activity you are registering under.<\/p>\n
The business activity classification system, known as the KBLI (Klasifikasi Baku Lapangan Usaha Indonesia)<\/a>, controls which licenses you need and whether your sector is open to foreign ownership at all. The Indonesia Investment Coordinating Board (BKPM)<\/a> oversees compliance for all foreign investment registrations from start to finish.<\/p>\nEvery registration, regardless of entity type, ends with a Business Identification Number (NIB)<\/a> issued through OSS. You cannot legally operate in Indonesia without one. The NIB also functions as your import license identification and customs access code, all under a single number.<\/p>\nPT PMA: Foreign-Owned Limited Liability Company<\/h2>\n
PT PMA (Penanaman Modal Asing) is the standard vehicle for foreign direct investment in Indonesia. It allows up to 100% foreign ownership in sectors listed on the Positive Investment List under Presidential Regulation No. 10 of 2021. Sectors not on that list are either partially restricted or closed to foreign shareholders entirely. See what is a PMA company in Indonesia<\/a> for the full structural background.<\/p>\nCapital Requirements for PT PMA<\/h3>\n
The total investment plan must reach at least IDR 10 billion, excluding land and buildings. Under BKPM Regulation No. 5 of 2025 (effective October 2, 2025), the minimum paid-up cash capital dropped to IDR 2.5 billion. The remaining IDR 7.5 billion can be covered with non-cash assets such as machinery, vehicles, or operational equipment.<\/p>\n
Check the complete guide: The Minimum Capital for Establishing PT PMA Company in Indonesia<\/a><\/p>\nShareholder and Management Requirements<\/h3>\n
You need at least two shareholders, which can be individuals or legal entities, foreign or domestic. The company must have at least one director and one commissioner. Foreign nationals serving as directors need a valid KITAS (Limited Stay Permit) before most banking and licensing steps will move forward.<\/p>\n
Also read:<\/strong> Does a PT PMA Company Need Indonesian Shareholders and Employees?<\/a><\/p>\nBusiness Address Requirement<\/h3>\n
A registered business address in Indonesia is mandatory. Virtual offices work for most KBLI categories as long as the address meets local zoning rules for commercial use. A few sectors require a verifiable physical location, so check your specific KBLI before signing any lease.<\/p>\n
Required Documents for PT PMA Registration<\/h3>\n
Gather passports of all foreign shareholders, a Capital Statement Letter from each shareholder confirming they have the funds, proof of business address in Indonesia, and a notarized Deed of Establishment in Bahasa Indonesia. If any shareholder is a corporate entity, you also need its company documents apostilled and translated into Bahasa Indonesia by a certified translator.<\/p>\n
PT PMA Registration Steps<\/h3>\nStep 1: Verify Your KBLI Code and Ownership Eligibility<\/h3>\n
Cross-reference your intended activity against the Positive Investment List to confirm the sector is open and find out the permitted foreign ownership percentage. Some activities allow 100%; others are capped at 49% or 67%. Getting this wrong early creates structural problems that are expensive to unwind later.<\/p>\n
Step 2: Reserve Company Name via AHU Online<\/h3>\n
Submit at least three alternative names to Kemenkumham through the AHU Online portal. Approval takes roughly one business day. The approved name is held for 60 days, which is your window to get the deed signed and submitted.<\/p>\n
Step 3: Draft and Notarize the Deed of Establishment<\/h3>\n
A licensed Indonesian notary drafts the deed in Bahasa Indonesia. It covers the company name, registered address, shareholders, KBLI code, capital structure, and management. This document is the legal core of the entire entity.<\/p>\n
Step 4: Obtain Ministry of Law and Human Rights Approval<\/h3>\n
The notary submits the deed electronically to Kemenkumham. This is what formally makes the company a legal entity under Indonesian law. Processing takes three to seven business days and produces an official approval letter (SK Kemenkumham).<\/p>\n
Step 5: Register via OSS Portal for NIB<\/h3>\n
Log into oss.go.id with your Kemenkumham approval in hand, fill out your company profile, and submit your business activity data. For low-risk activities, the NIB and business license are issued together under Government Regulation No. 28 of 2025.<\/p>\n
Step 6: Obtain NPWP (Corporate Tax ID)<\/h3>\n
Register for a corporate tax ID through the Directorate General of Taxes (DJP) online portal or the nearest tax office. Banks will not open a corporate account without it.<\/p>\n
Step 7: Secure Operational Licenses Based on Risk Level<\/h3>\n
Low-risk activities only need the NIB. Medium-risk businesses need a NIB plus a Standard Certificate. High-risk sectors require a NIB and a full Business Permit, which can involve a government site inspection before operations are allowed to start.<\/p>\n
Step 8: Open Corporate Bank Account and Deposit Capital<\/h3>\n
Open an account in the company’s name and deposit the IDR 2.5 billion paid-up capital. Banks require the Deed of Establishment, SK Kemenkumham, NIB, NPWP, and personal ID documents for all signatories. Foreign directors without a valid KITAS will be turned away at this step \u2014 most Indonesian banks apply this rule consistently.<\/p>\n
Check our guide on How to Open a Bank Account for a PT PMA in Indonesia<\/a><\/p>\nStep 9: Apply for Investor KITAS (for Resident Foreign Investors)<\/h3>\n
After the investment plan is registered with BKPM, foreign shareholders who plan to live in Indonesia can apply for an Investor KITAS<\/a>. This ties your long-term residency to your investment and is the cleanest path for founders who want to be based here full time.<\/p>\nThe whole process runs 10 to 14 weeks on average, from name reservation through bank account setup. A step-by-step walkthrough with document checklists is at how to set up a PMA company in Indonesia<\/a>.<\/p>\nInvestinAsia’s PT PMA registration service<\/a> covers name reservation, notary coordination, OSS filing, licensing, and KITAS applications for foreign directors.<\/p>\n\nSetting Up a PT PMA? Get Expert Help From Day One<\/p>\n
InvestinAsia handles name reservation, OSS filing, capital setup, and licensing for foreign investors in Indonesia.<\/p>\n
Talk to a PT PMA Specialist<\/a><\/div>\n<\/div>\nPT PMDN: Domestic Limited Liability Company<\/h2>\n
PT PMDN (Penanaman Modal Dalam Negeri) is a domestic limited liability company owned entirely by Indonesian citizens or Indonesian legal entities. It operates under Company Law No. 40 of 2007. Because it is closed to foreign shareholders, it can access sectors that a PT PMA cannot, including many that are restricted or on the negative investment list. For more on the structure itself, see what is PT in Indonesia<\/a>.<\/p>\nOne thing that trips people up: the moment a foreign national takes any shareholding position in a PT PMDN, it must re-register as a PT PMA. This is a common and costly compliance issue in joint ventures.<\/p>\n
Shareholder and Management Requirements<\/h3>\n
At least two Indonesian citizens or Indonesian legal entities must serve as shareholders. The company needs at least one director and one commissioner. A foreign national may serve as director only if they hold a valid NPWP and the appropriate work authorization under Indonesian immigration rules.<\/p>\n
Capital Requirements for PT PMDN<\/h3>\n
There is no fixed statutory minimum capital that applies across all PT PMDN registrations. Company size classification is what matters here. Small companies generally operate with capital under IDR 600 million, medium companies fall between IDR 600 million and IDR 10 billion, and large companies sit above IDR 10 billion. Your size classification affects reporting obligations and sector access in some cases.<\/p>\n
Required Documents for PT PMDN Registration<\/h3>\n
You need Indonesian national ID cards (KTP) for all shareholders, directors, and commissioners, family registration cards (KK) for individual shareholders, NPWP for each shareholder and management member, proof of business address, and a notarized Deed of Establishment.<\/p>\n
PT PMDN Registration Steps<\/h3>\nStep 1: Reserve Company Name via AHU Online<\/h3>\n
Submit at least three Bahasa Indonesia name alternatives to Kemenkumham through AHU Online. The name must have at least three words. Approval takes one to two business days, and the name is held for 60 days after approval.<\/p>\n
Step 2: Draft and Notarize Deed of Establishment<\/h3>\n
A licensed notary prepares the deed covering shareholders, management, the KBLI code, business activities, and capital structure. All content must be in Bahasa Indonesia.<\/p>\n
Step 3: Obtain MoLHR Approval<\/h3>\n
The notary submits the deed electronically to Kemenkumham. Approval typically takes three to five business days and produces an official SK Kemenkumham confirming the company’s legal status.<\/p>\n
Step 4: Register via OSS for NIB<\/h3>\n
Use the legal entity data from your MoLHR approval to complete registration at oss.go.id. The NIB is issued after submission. Low-risk activities also receive their business license at this stage under GR 28\/2025.<\/p>\n
Step 5: Obtain NPWP<\/h3>\n
Register for a corporate tax ID through the DJP online portal or a local tax office. Required for banking, invoicing, and all annual tax reporting.<\/p>\n
Step 6: Secure Sector-Specific Licenses<\/h3>\n
Based on your KBLI risk classification, you may need a Standard Certificate or a full Business Permit in addition to the NIB. Check the OSS risk matrix for your KBLI code before you begin operations \u2014 assumptions about low risk are not always correct, and operating without the right permit creates real liability.<\/p>\n
Step 7: Open Corporate Bank Account<\/h3>\n
Banks require the Deed of Establishment, SK Kemenkumham, NIB, NPWP, and ID documents for all authorized directors. Processing takes two to five business days after documents are submitted.<\/p>\n
PT PMDN registration typically takes three to five weeks end to end. InvestinAsia handles local PT PMDN company registration<\/a> for businesses that need a fully compliant domestic structure.<\/p>\nPT Perorangan: Individual Limited Liability Company<\/h2>\n
PT Perorangan is a simplified company structure introduced under Indonesia’s Job Creation Law. It lets a single Indonesian citizen set up a limited liability company without needing a second shareholder or partner. The structure is designed specifically for micro and small enterprises that want legal protection without the administrative weight of a standard PT.<\/p>\n
Foreigners cannot register a PT Perorangan. If you are not an Indonesian citizen, the options are PT PMA or KPPA. The complete guide to PT Perorangan in Indonesia<\/a> covers eligibility thresholds and what happens when the business grows beyond UMKM revenue limits.<\/p>\nPT Perorangan Requirements<\/h3>\n
The founder must be an Indonesian citizen acting as the sole owner. There is no fixed minimum capital by law, but at least 25% of declared capital must be deposited within 60 days of registration. Annual revenue and capital must stay within the micro or small enterprise thresholds under applicable UMKM regulations. Once those thresholds are crossed, upgrading to a standard PT is required.<\/p>\n
PT Perorangan Registration Steps<\/h3>\nStep 1: Access OSS Portal with Your NIK<\/h3>\n
Log into oss.go.id using your Indonesian national ID number (NIK). Select the UMK (micro\/small enterprise) category to access the PT Perorangan registration flow. No notary, no physical visit, no appointment required.<\/p>\n
Step 2: Fill In Business Details<\/h3>\n
Enter your KBLI code, business address, declared capital amount, and personal information. Unlike a standard PT, there is no notarized deed of establishment required. This is the biggest practical difference between the two structures.<\/p>\n
Step 3: Receive NIB Immediately<\/h3>\n
Once you submit, the system generates your NIB and basic business license automatically. The whole process can be done in a single business day with no cost through OSS.<\/p>\n
Step 4: Register for NPWP<\/h3>\n
Complete NPWP registration through DJP online or at a local tax office. This is needed for invoicing and annual tax filing obligations as a legal entity, even at the micro business level.<\/p>\n
CV: Commanditaire Vennootschap (Limited Partnership)<\/h2>\n
A CV (Commanditaire Vennootschap), also known as Persekutuan Komanditer, is a partnership between at least two people. One is active (komplementer) and carries unlimited personal liability for business obligations. The other is passive (komanditer) and is only liable up to their capital contribution. CVs cannot be used by foreign nationals as a primary business vehicle and are not a route for foreign direct investment.<\/p>\n
CV Requirements<\/h3>\n
You need at least two partners: one active, one passive. Both must be Indonesian citizens or Indonesian legal entities. There is no statutory minimum capital; partners agree on their contributions in the partnership deed. One practical point worth noting: unlike a PT, a CV does not create a fully separate legal entity, which means the active partner’s personal assets are exposed to business debts.<\/p>\n
CV Registration Steps<\/h3>\nStep 1: Draft Partnership Deed<\/h3>\n
A notary or legal advisor prepares the deed. It covers each partner’s role, capital contributions, profit-sharing, and management responsibilities. Get this document right, because everything downstream depends on it.<\/p>\n
Step 2: Register via AHU Online<\/h3>\n
Submit the partnership deed and company information through Kemenkumham’s AHU Online portal. After the Job Creation Law, CV registration was centralized through AHU Online and is now processed nationally rather than through local district courts, which is a significant improvement from the old process.<\/p>\n
Step 3: Receive Registration Certificate<\/h3>\n
Kemenkumham issues a registration certificate confirming the CV’s legal standing after AHU Online submission. This typically takes two to five business days.<\/p>\n
Step 4: Register via OSS for NIB<\/h3>\n
Complete your OSS registration at oss.go.id to get your NIB and applicable business licenses based on your KBLI code and risk classification.<\/p>\n
Step 5: Obtain NPWP<\/h3>\n
Register the CV for a corporate tax ID at the local DJP office. Required for all commercial transactions, payroll, and annual tax reporting.<\/p>\n
CV registration is faster and cheaper than a standard PT, usually wrapped up within one to two weeks from deed drafting to NIB issuance.<\/p>\n
KPPA: Foreign Representative Office<\/h2>\n
A KPPA (Kantor Perwakilan Perusahaan Asing) lets a foreign company maintain a physical presence in Indonesia without setting up a full subsidiary. It is a non-commercial structure: market research, promotions, and local relationship building are allowed, but generating revenue or signing commercial contracts on behalf of third parties is not. For the full structural explanation, see what is KPPA in Indonesia<\/a>.<\/p>\nThe KPPA is often used as a testing ground before committing to a full PT PMA. That said, it is not a stepping stone in the legal sense \u2014 a KPPA cannot be directly converted into a PT PMA. If the company later decides to go commercial, a separate PT PMA registration is required from scratch.<\/p>\n
Parent Company Eligibility<\/h3>\n
The parent company must be a legally established foreign entity. All founding documents, including registration certificates and articles of association, need apostille certification and a certified Bahasa Indonesia translation if not already in English.<\/p>\n
Chief Representative Officer (CRO) Requirement<\/h3>\n
At least one Chief Representative Officer must be appointed. The CRO can be a foreign or Indonesian national. A foreign CRO who will live in Indonesia needs a work-based KITAS after the KPPA is registered, using the KPPA registration number as the sponsoring entity reference.<\/p>\n
Capital and Revenue Restrictions<\/h3>\n
There is no minimum capital requirement for a KPPA. However, it cannot earn revenue in Indonesia, issue invoices for goods or services, or enter any commercial transaction that generates local taxable income. All operating costs must be funded by the parent company abroad.<\/p>\n
License Validity<\/h3>\n
The KPPA license is issued for a defined period and is renewable up to a maximum of five years in total. Once that window closes, companies wanting to continue in Indonesia need to register a PT PMA.<\/p>\n
Required Documents for KPPA Registration<\/h3>\n
You need the parent company’s apostilled registration certificate, articles of association, a board resolution authorizing the KPPA and naming the CRO, the CRO’s passport, proof of office address in Indonesia, and the parent company’s audited financial statements for the most recent fiscal year.<\/p>\n
Also read:<\/strong> Business Activities Allowed for Foreign Representative Offices in Indonesia<\/a><\/p>\nKPPA Registration Steps<\/h3>\nStep 1: Legalize and Translate Parent Company Documents<\/h3>\n
Get apostille certification for all parent company documents through the competent authority in your home country. Documents not in English need a sworn Bahasa Indonesia translation from a certified translator recognized in Indonesia. This step takes the most time if documents are coming from multiple countries or jurisdictions.<\/p>\n
Step 2: Submit Application via OSS<\/h3>\n
Register the KPPA through oss.go.id. Complete the representative office profile, upload supporting documents, and declare intended activities and office location.<\/p>\n
Step 3: Obtain BKPM License<\/h3>\n
BKPM reviews the application and issues the operating license. How complete your document file is when you submit determines how fast this goes. A well-prepared submission clears in two to four weeks. An incomplete one will loop back for revisions and add weeks to the timeline.<\/p>\n
Step 4: Register for NPWP<\/h3>\n
A KPPA must register for a corporate tax ID even without commercial income. The NPWP is needed to manage payroll for any local staff and handle withholding tax on salaries and services.<\/p>\n
Step 5: Apply for KITAS for Foreign CRO<\/h3>\n
If the CRO is a foreign national who will be based in Indonesia, apply for a work-based KITAS after the KPPA license and NPWP are secured. You need the KPPA registration number, an employment letter from the parent company, and standard immigration documentation.<\/p>\n
KPPA registration takes four to eight weeks from document submission to license issuance. InvestinAsia’s representative office registration service<\/a> covers document preparation, BKPM liaison, OSS registration, and KITAS applications for foreign CROs.<\/p>\nEntity Comparison at a Glance<\/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>\nThe table below puts the key registration parameters side by side. For a more detailed breakdown of the three structures most relevant to foreign investors, see PT vs PMA vs KPPA: what are the differences<\/a>.<\/p>\n\n\n\n\nEntity<\/th>\n Who Can Register<\/th>\n Min. Capital<\/th>\n Revenue Allowed<\/th>\n Typical Timeline<\/th>\n<\/tr>\n<\/thead>\n \n\nPT PMA<\/strong><\/td>\nForeign investors (full or partial ownership)<\/td>\n IDR 2.5B cash; IDR 10B total investment plan<\/td>\n Yes<\/td>\n 10 to 14 weeks<\/td>\n<\/tr>\n \nPT PMDN<\/strong><\/td>\nIndonesian citizens and legal entities only<\/td>\n No fixed minimum (size-based classification)<\/td>\n Yes<\/td>\n 3 to 5 weeks<\/td>\n<\/tr>\n \nPT Perorangan<\/strong><\/td>\nIndonesian citizens (solo UMKM founder)<\/td>\n No fixed minimum; 25% deposit within 60 days<\/td>\n Yes (within UMKM thresholds)<\/td>\n 1 business day<\/td>\n<\/tr>\n \nCV<\/strong><\/td>\nIndonesian citizens (2 or more partners)<\/td>\n No statutory minimum<\/td>\n Yes<\/td>\n 1 to 2 weeks<\/td>\n<\/tr>\n \nKPPA<\/strong><\/td>\nForeign companies (representative office only)<\/td>\n None<\/td>\n No<\/td>\n 4 to 8 weeks<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\nThe OSS System: One Platform for All Entity Types<\/h2>\n
All five entity types covered here pass through the OSS portal for NIB issuance. The system currently runs under Government Regulation No. 28 of 2025, which updated GR 5\/2021 and expanded business activity classifications from 1,348 to 1,417 KBLI entries while deepening integration between ministries and regional authorities.<\/p>\n
Understanding how Indonesia’s risk-based OSS licensing system works<\/a> is useful before you start. The OSS system overview<\/a> explains how the portal connects with Kemenkumham, the Directorate General of Taxes, and BKPM in a single flow. For a practical document review before you begin, the complete checklist before opening a business in Indonesia<\/a> is worth going through.<\/p>\n
Every company registration in Indonesia passes through the OSS (Online Single Submission) portal at oss.go.id at some point. But two things need to be locked in before you get there: the legal entity type and the business activity you are registering under.<\/p>\n
The business activity classification system, known as the KBLI (Klasifikasi Baku Lapangan Usaha Indonesia)<\/a>, controls which licenses you need and whether your sector is open to foreign ownership at all. The Indonesia Investment Coordinating Board (BKPM)<\/a> oversees compliance for all foreign investment registrations from start to finish.<\/p>\n Every registration, regardless of entity type, ends with a Business Identification Number (NIB)<\/a> issued through OSS. You cannot legally operate in Indonesia without one. The NIB also functions as your import license identification and customs access code, all under a single number.<\/p>\n PT PMA (Penanaman Modal Asing) is the standard vehicle for foreign direct investment in Indonesia. It allows up to 100% foreign ownership in sectors listed on the Positive Investment List under Presidential Regulation No. 10 of 2021. Sectors not on that list are either partially restricted or closed to foreign shareholders entirely. See what is a PMA company in Indonesia<\/a> for the full structural background.<\/p>\n The total investment plan must reach at least IDR 10 billion, excluding land and buildings. Under BKPM Regulation No. 5 of 2025 (effective October 2, 2025), the minimum paid-up cash capital dropped to IDR 2.5 billion. The remaining IDR 7.5 billion can be covered with non-cash assets such as machinery, vehicles, or operational equipment.<\/p>\n Check the complete guide: The Minimum Capital for Establishing PT PMA Company in Indonesia<\/a><\/p>\n You need at least two shareholders, which can be individuals or legal entities, foreign or domestic. The company must have at least one director and one commissioner. Foreign nationals serving as directors need a valid KITAS (Limited Stay Permit) before most banking and licensing steps will move forward.<\/p>\n Also read:<\/strong> Does a PT PMA Company Need Indonesian Shareholders and Employees?<\/a><\/p>\n A registered business address in Indonesia is mandatory. Virtual offices work for most KBLI categories as long as the address meets local zoning rules for commercial use. A few sectors require a verifiable physical location, so check your specific KBLI before signing any lease.<\/p>\n Gather passports of all foreign shareholders, a Capital Statement Letter from each shareholder confirming they have the funds, proof of business address in Indonesia, and a notarized Deed of Establishment in Bahasa Indonesia. If any shareholder is a corporate entity, you also need its company documents apostilled and translated into Bahasa Indonesia by a certified translator.<\/p>\n Cross-reference your intended activity against the Positive Investment List to confirm the sector is open and find out the permitted foreign ownership percentage. Some activities allow 100%; others are capped at 49% or 67%. Getting this wrong early creates structural problems that are expensive to unwind later.<\/p>\n Submit at least three alternative names to Kemenkumham through the AHU Online portal. Approval takes roughly one business day. The approved name is held for 60 days, which is your window to get the deed signed and submitted.<\/p>\n A licensed Indonesian notary drafts the deed in Bahasa Indonesia. It covers the company name, registered address, shareholders, KBLI code, capital structure, and management. This document is the legal core of the entire entity.<\/p>\n The notary submits the deed electronically to Kemenkumham. This is what formally makes the company a legal entity under Indonesian law. Processing takes three to seven business days and produces an official approval letter (SK Kemenkumham).<\/p>\n Log into oss.go.id with your Kemenkumham approval in hand, fill out your company profile, and submit your business activity data. For low-risk activities, the NIB and business license are issued together under Government Regulation No. 28 of 2025.<\/p>\n Register for a corporate tax ID through the Directorate General of Taxes (DJP) online portal or the nearest tax office. Banks will not open a corporate account without it.<\/p>\n Low-risk activities only need the NIB. Medium-risk businesses need a NIB plus a Standard Certificate. High-risk sectors require a NIB and a full Business Permit, which can involve a government site inspection before operations are allowed to start.<\/p>\n Open an account in the company’s name and deposit the IDR 2.5 billion paid-up capital. Banks require the Deed of Establishment, SK Kemenkumham, NIB, NPWP, and personal ID documents for all signatories. Foreign directors without a valid KITAS will be turned away at this step \u2014 most Indonesian banks apply this rule consistently.<\/p>\n Check our guide on How to Open a Bank Account for a PT PMA in Indonesia<\/a><\/p>\n After the investment plan is registered with BKPM, foreign shareholders who plan to live in Indonesia can apply for an Investor KITAS<\/a>. This ties your long-term residency to your investment and is the cleanest path for founders who want to be based here full time.<\/p>\n The whole process runs 10 to 14 weeks on average, from name reservation through bank account setup. A step-by-step walkthrough with document checklists is at how to set up a PMA company in Indonesia<\/a>.<\/p>\n InvestinAsia’s PT PMA registration service<\/a> covers name reservation, notary coordination, OSS filing, licensing, and KITAS applications for foreign directors.<\/p>\n Setting Up a PT PMA? Get Expert Help From Day One<\/p>\n InvestinAsia handles name reservation, OSS filing, capital setup, and licensing for foreign investors in Indonesia.<\/p>\n PT PMDN (Penanaman Modal Dalam Negeri) is a domestic limited liability company owned entirely by Indonesian citizens or Indonesian legal entities. It operates under Company Law No. 40 of 2007. Because it is closed to foreign shareholders, it can access sectors that a PT PMA cannot, including many that are restricted or on the negative investment list. For more on the structure itself, see what is PT in Indonesia<\/a>.<\/p>\n One thing that trips people up: the moment a foreign national takes any shareholding position in a PT PMDN, it must re-register as a PT PMA. This is a common and costly compliance issue in joint ventures.<\/p>\n At least two Indonesian citizens or Indonesian legal entities must serve as shareholders. The company needs at least one director and one commissioner. A foreign national may serve as director only if they hold a valid NPWP and the appropriate work authorization under Indonesian immigration rules.<\/p>\n There is no fixed statutory minimum capital that applies across all PT PMDN registrations. Company size classification is what matters here. Small companies generally operate with capital under IDR 600 million, medium companies fall between IDR 600 million and IDR 10 billion, and large companies sit above IDR 10 billion. Your size classification affects reporting obligations and sector access in some cases.<\/p>\n You need Indonesian national ID cards (KTP) for all shareholders, directors, and commissioners, family registration cards (KK) for individual shareholders, NPWP for each shareholder and management member, proof of business address, and a notarized Deed of Establishment.<\/p>\n Submit at least three Bahasa Indonesia name alternatives to Kemenkumham through AHU Online. The name must have at least three words. Approval takes one to two business days, and the name is held for 60 days after approval.<\/p>\n A licensed notary prepares the deed covering shareholders, management, the KBLI code, business activities, and capital structure. All content must be in Bahasa Indonesia.<\/p>\n The notary submits the deed electronically to Kemenkumham. Approval typically takes three to five business days and produces an official SK Kemenkumham confirming the company’s legal status.<\/p>\n Use the legal entity data from your MoLHR approval to complete registration at oss.go.id. The NIB is issued after submission. Low-risk activities also receive their business license at this stage under GR 28\/2025.<\/p>\n Register for a corporate tax ID through the DJP online portal or a local tax office. Required for banking, invoicing, and all annual tax reporting.<\/p>\n Based on your KBLI risk classification, you may need a Standard Certificate or a full Business Permit in addition to the NIB. Check the OSS risk matrix for your KBLI code before you begin operations \u2014 assumptions about low risk are not always correct, and operating without the right permit creates real liability.<\/p>\n Banks require the Deed of Establishment, SK Kemenkumham, NIB, NPWP, and ID documents for all authorized directors. Processing takes two to five business days after documents are submitted.<\/p>\n PT PMDN registration typically takes three to five weeks end to end. InvestinAsia handles local PT PMDN company registration<\/a> for businesses that need a fully compliant domestic structure.<\/p>\n PT Perorangan is a simplified company structure introduced under Indonesia’s Job Creation Law. It lets a single Indonesian citizen set up a limited liability company without needing a second shareholder or partner. The structure is designed specifically for micro and small enterprises that want legal protection without the administrative weight of a standard PT.<\/p>\n Foreigners cannot register a PT Perorangan. If you are not an Indonesian citizen, the options are PT PMA or KPPA. The complete guide to PT Perorangan in Indonesia<\/a> covers eligibility thresholds and what happens when the business grows beyond UMKM revenue limits.<\/p>\n The founder must be an Indonesian citizen acting as the sole owner. There is no fixed minimum capital by law, but at least 25% of declared capital must be deposited within 60 days of registration. Annual revenue and capital must stay within the micro or small enterprise thresholds under applicable UMKM regulations. Once those thresholds are crossed, upgrading to a standard PT is required.<\/p>\n Log into oss.go.id using your Indonesian national ID number (NIK). Select the UMK (micro\/small enterprise) category to access the PT Perorangan registration flow. No notary, no physical visit, no appointment required.<\/p>\n Enter your KBLI code, business address, declared capital amount, and personal information. Unlike a standard PT, there is no notarized deed of establishment required. This is the biggest practical difference between the two structures.<\/p>\n Once you submit, the system generates your NIB and basic business license automatically. The whole process can be done in a single business day with no cost through OSS.<\/p>\n Complete NPWP registration through DJP online or at a local tax office. This is needed for invoicing and annual tax filing obligations as a legal entity, even at the micro business level.<\/p>\n A CV (Commanditaire Vennootschap), also known as Persekutuan Komanditer, is a partnership between at least two people. One is active (komplementer) and carries unlimited personal liability for business obligations. The other is passive (komanditer) and is only liable up to their capital contribution. CVs cannot be used by foreign nationals as a primary business vehicle and are not a route for foreign direct investment.<\/p>\n You need at least two partners: one active, one passive. Both must be Indonesian citizens or Indonesian legal entities. There is no statutory minimum capital; partners agree on their contributions in the partnership deed. One practical point worth noting: unlike a PT, a CV does not create a fully separate legal entity, which means the active partner’s personal assets are exposed to business debts.<\/p>\n A notary or legal advisor prepares the deed. It covers each partner’s role, capital contributions, profit-sharing, and management responsibilities. Get this document right, because everything downstream depends on it.<\/p>\n Submit the partnership deed and company information through Kemenkumham’s AHU Online portal. After the Job Creation Law, CV registration was centralized through AHU Online and is now processed nationally rather than through local district courts, which is a significant improvement from the old process.<\/p>\n Kemenkumham issues a registration certificate confirming the CV’s legal standing after AHU Online submission. This typically takes two to five business days.<\/p>\n Complete your OSS registration at oss.go.id to get your NIB and applicable business licenses based on your KBLI code and risk classification.<\/p>\n Register the CV for a corporate tax ID at the local DJP office. Required for all commercial transactions, payroll, and annual tax reporting.<\/p>\n CV registration is faster and cheaper than a standard PT, usually wrapped up within one to two weeks from deed drafting to NIB issuance.<\/p>\n A KPPA (Kantor Perwakilan Perusahaan Asing) lets a foreign company maintain a physical presence in Indonesia without setting up a full subsidiary. It is a non-commercial structure: market research, promotions, and local relationship building are allowed, but generating revenue or signing commercial contracts on behalf of third parties is not. For the full structural explanation, see what is KPPA in Indonesia<\/a>.<\/p>\n The KPPA is often used as a testing ground before committing to a full PT PMA. That said, it is not a stepping stone in the legal sense \u2014 a KPPA cannot be directly converted into a PT PMA. If the company later decides to go commercial, a separate PT PMA registration is required from scratch.<\/p>\n The parent company must be a legally established foreign entity. All founding documents, including registration certificates and articles of association, need apostille certification and a certified Bahasa Indonesia translation if not already in English.<\/p>\n At least one Chief Representative Officer must be appointed. The CRO can be a foreign or Indonesian national. A foreign CRO who will live in Indonesia needs a work-based KITAS after the KPPA is registered, using the KPPA registration number as the sponsoring entity reference.<\/p>\n There is no minimum capital requirement for a KPPA. However, it cannot earn revenue in Indonesia, issue invoices for goods or services, or enter any commercial transaction that generates local taxable income. All operating costs must be funded by the parent company abroad.<\/p>\n The KPPA license is issued for a defined period and is renewable up to a maximum of five years in total. Once that window closes, companies wanting to continue in Indonesia need to register a PT PMA.<\/p>\n You need the parent company’s apostilled registration certificate, articles of association, a board resolution authorizing the KPPA and naming the CRO, the CRO’s passport, proof of office address in Indonesia, and the parent company’s audited financial statements for the most recent fiscal year.<\/p>\n Also read:<\/strong> Business Activities Allowed for Foreign Representative Offices in Indonesia<\/a><\/p>\n Get apostille certification for all parent company documents through the competent authority in your home country. Documents not in English need a sworn Bahasa Indonesia translation from a certified translator recognized in Indonesia. This step takes the most time if documents are coming from multiple countries or jurisdictions.<\/p>\n Register the KPPA through oss.go.id. Complete the representative office profile, upload supporting documents, and declare intended activities and office location.<\/p>\n BKPM reviews the application and issues the operating license. How complete your document file is when you submit determines how fast this goes. A well-prepared submission clears in two to four weeks. An incomplete one will loop back for revisions and add weeks to the timeline.<\/p>\n A KPPA must register for a corporate tax ID even without commercial income. The NPWP is needed to manage payroll for any local staff and handle withholding tax on salaries and services.<\/p>\n If the CRO is a foreign national who will be based in Indonesia, apply for a work-based KITAS after the KPPA license and NPWP are secured. You need the KPPA registration number, an employment letter from the parent company, and standard immigration documentation.<\/p>\n KPPA registration takes four to eight weeks from document submission to license issuance. InvestinAsia’s representative office registration service<\/a> covers document preparation, BKPM liaison, OSS registration, and KITAS applications for foreign CROs.<\/p>\n The table below puts the key registration parameters side by side. For a more detailed breakdown of the three structures most relevant to foreign investors, see PT vs PMA vs KPPA: what are the differences<\/a>.<\/p>\n All five entity types covered here pass through the OSS portal for NIB issuance. The system currently runs under Government Regulation No. 28 of 2025, which updated GR 5\/2021 and expanded business activity classifications from 1,348 to 1,417 KBLI entries while deepening integration between ministries and regional authorities.<\/p>\n Understanding how Indonesia’s risk-based OSS licensing system works<\/a> is useful before you start. The OSS system overview<\/a> explains how the portal connects with Kemenkumham, the Directorate General of Taxes, and BKPM in a single flow. For a practical document review before you begin, the complete checklist before opening a business in Indonesia<\/a> is worth going through.<\/p>\nPT PMA: Foreign-Owned Limited Liability Company<\/h2>\n
Capital Requirements for PT PMA<\/h3>\n
Shareholder and Management Requirements<\/h3>\n
Business Address Requirement<\/h3>\n
Required Documents for PT PMA Registration<\/h3>\n
PT PMA Registration Steps<\/h3>\n
Step 1: Verify Your KBLI Code and Ownership Eligibility<\/h3>\n
Step 2: Reserve Company Name via AHU Online<\/h3>\n
Step 3: Draft and Notarize the Deed of Establishment<\/h3>\n
Step 4: Obtain Ministry of Law and Human Rights Approval<\/h3>\n
Step 5: Register via OSS Portal for NIB<\/h3>\n
Step 6: Obtain NPWP (Corporate Tax ID)<\/h3>\n
Step 7: Secure Operational Licenses Based on Risk Level<\/h3>\n
Step 8: Open Corporate Bank Account and Deposit Capital<\/h3>\n
Step 9: Apply for Investor KITAS (for Resident Foreign Investors)<\/h3>\n
PT PMDN: Domestic Limited Liability Company<\/h2>\n
Shareholder and Management Requirements<\/h3>\n
Capital Requirements for PT PMDN<\/h3>\n
Required Documents for PT PMDN Registration<\/h3>\n
PT PMDN Registration Steps<\/h3>\n
Step 1: Reserve Company Name via AHU Online<\/h3>\n
Step 2: Draft and Notarize Deed of Establishment<\/h3>\n
Step 3: Obtain MoLHR Approval<\/h3>\n
Step 4: Register via OSS for NIB<\/h3>\n
Step 5: Obtain NPWP<\/h3>\n
Step 6: Secure Sector-Specific Licenses<\/h3>\n
Step 7: Open Corporate Bank Account<\/h3>\n
PT Perorangan: Individual Limited Liability Company<\/h2>\n
PT Perorangan Requirements<\/h3>\n
PT Perorangan Registration Steps<\/h3>\n
Step 1: Access OSS Portal with Your NIK<\/h3>\n
Step 2: Fill In Business Details<\/h3>\n
Step 3: Receive NIB Immediately<\/h3>\n
Step 4: Register for NPWP<\/h3>\n
CV: Commanditaire Vennootschap (Limited Partnership)<\/h2>\n
CV Requirements<\/h3>\n
CV Registration Steps<\/h3>\n
Step 1: Draft Partnership Deed<\/h3>\n
Step 2: Register via AHU Online<\/h3>\n
Step 3: Receive Registration Certificate<\/h3>\n
Step 4: Register via OSS for NIB<\/h3>\n
Step 5: Obtain NPWP<\/h3>\n
KPPA: Foreign Representative Office<\/h2>\n
Parent Company Eligibility<\/h3>\n
Chief Representative Officer (CRO) Requirement<\/h3>\n
Capital and Revenue Restrictions<\/h3>\n
License Validity<\/h3>\n
Required Documents for KPPA Registration<\/h3>\n
KPPA Registration Steps<\/h3>\n
Step 1: Legalize and Translate Parent Company Documents<\/h3>\n
Step 2: Submit Application via OSS<\/h3>\n
Step 3: Obtain BKPM License<\/h3>\n
Step 4: Register for NPWP<\/h3>\n
Step 5: Apply for KITAS for Foreign CRO<\/h3>\n
Entity Comparison at a Glance<\/h2>\n
\n\n
\n \nEntity<\/th>\n Who Can Register<\/th>\n Min. Capital<\/th>\n Revenue Allowed<\/th>\n Typical Timeline<\/th>\n<\/tr>\n<\/thead>\n \n PT PMA<\/strong><\/td>\n Foreign investors (full or partial ownership)<\/td>\n IDR 2.5B cash; IDR 10B total investment plan<\/td>\n Yes<\/td>\n 10 to 14 weeks<\/td>\n<\/tr>\n \n PT PMDN<\/strong><\/td>\n Indonesian citizens and legal entities only<\/td>\n No fixed minimum (size-based classification)<\/td>\n Yes<\/td>\n 3 to 5 weeks<\/td>\n<\/tr>\n \n PT Perorangan<\/strong><\/td>\n Indonesian citizens (solo UMKM founder)<\/td>\n No fixed minimum; 25% deposit within 60 days<\/td>\n Yes (within UMKM thresholds)<\/td>\n 1 business day<\/td>\n<\/tr>\n \n CV<\/strong><\/td>\n Indonesian citizens (2 or more partners)<\/td>\n No statutory minimum<\/td>\n Yes<\/td>\n 1 to 2 weeks<\/td>\n<\/tr>\n \n KPPA<\/strong><\/td>\n Foreign companies (representative office only)<\/td>\n None<\/td>\n No<\/td>\n 4 to 8 weeks<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n The OSS System: One Platform for All Entity Types<\/h2>\n