How to Register a Company in Indonesia
Step-by-step guide to registering a company in Indonesia including PT PMA, PT Local, NIB, OSS, and all required documents and procedures.
Introduction
Indonesia offers a transparent company registration framework governed by the Company Law No. 40 of 2007 and regulated by the Ministry of Investment (BKPM). Whether you are establishing a foreign-owned PT PMA or a local PT, the registration process follows a defined pathway through notarial, legal, and licensing procedures.
Types of Companies Available
Foreign investors typically choose between PT PMA (foreign-owned) or PT Local (domestic). A PT PMA allows up to 100% foreign ownership in many sectors, while a PT Local requires Indonesian shareholders. Representative offices and branch offices are alternative structures with limited commercial capabilities.
Legal Requirements
All companies must have minimum two shareholders, at least one director, one commissioner, a registered address in Indonesia, and articles of association drafted by a licensed notary. The company must also comply with minimum capital requirements which vary by type and sector.
Step-by-Step Registration Process
The process includes: 1) Company name reservation at MENKUMHAM, 2) Drafting articles of association with notary, 3) Ministry approval and legal entity status, 4) Tax registration (NPWP), 5) OSS registration for NIB and business licenses, 6) Office domicile letter, 7) Corporate bank account opening.
Required Documents
Documents needed include shareholder passports or KTP, proof of address, notarized articles of association, shareholder agreement, KBLI code selection, and capital allocation plan. Corporate shareholders must provide certificate of incorporation and board resolution.
Online Single Submission (OSS) System
Since 2018, Indonesia has centralized business licensing through the OSS platform. All companies must register through OSS to obtain their NIB (Business Identification Number) and apply for sector-specific licenses such as commercial or operational permits.
Timeline and Processing
The entire registration process typically takes 4-8 weeks for PT PMA and 3-6 weeks for PT Local. Delays can occur due to incomplete documentation, KBLI code issues, or government processing backlogs.
Costs Involved
Professional service fees range from USD 1,500-5,000 depending on company type and complexity. Additional costs include notary fees (IDR 2-5 million), virtual office (USD 30-50/month), and government filing fees.
Common Registration Mistakes
Frequent mistakes include selecting incorrect KBLI codes, underestimating capital requirements, failing to appoint a commissioner, using incomplete shareholder documentation, and not budgeting for ongoing compliance costs.
Post-Registration Obligations
After registration, companies must file monthly tax reports, submit annual financial statements, maintain updated OSS records, and comply with employment regulations. Failure to meet these obligations can result in license suspension or revocation.
Best Practices
Engage qualified legal and tax advisors from the beginning, verify KBLI codes against your actual business activities, maintain organized records, and budget for at least 12 months of compliance costs in your initial capital planning.
Frequently Asked Questions
- How long does company registration take in Indonesia?
- PT PMA typically takes 4-8 weeks; PT Local takes 3-6 weeks.
- What is the minimum capital requirement?
- PT PMA requires IDR 10 billion authorized capital with IDR 2.5 billion paid-up. PT Local has lower requirements.
- Do I need a physical office?
- A registered business address is required, but virtual office services are accepted for company domicile.