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Company Registration Indonesia for Foreign Companies
CPT Corporate provides company registration in Indonesia for foreign investors looking to establish and operate a business locally. We handle company formation, licensing, and compliance requirements so you can enter the Indonesian market with confidence.
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Choose the Right Business Structure for Company Registration in Indonesia
Our corporate specialist with 10+ years of experience on company registration in Indonesia. We help foreign investors navigate entity selection, permits, business licenses, and compliance requirements with greater clarity.
Foreign Liability Company
A Foreign Liability Company (PT PMA) is a limited liability company established under Indonesian law with foreign ownership. It allows foreign investors to conduct business activities in Indonesia, subject to the Positive Investment List which regulates the sectors open to foreign investment. PT PMA provides full legal protection and enables businesses to hire local and foreign employees, own assets, and enter contracts under Indonesian law.
It is called a foreign-owned company in Indonesia if any foreign individual or foreign entity holds share(s) in an Indonesian company. A foreign-owned company is often called PT PMA which stands for Perseroan Terbatas Penanaman Modal Asing or the limited liability company (LLC) of foreign investment.
Most business sectors are open to foreign investors, although some may impose foreign ownership limits or remain closed to foreign investment. A PT PMA can conduct commercial activities, generate revenue, hire employees, enter into contracts, hold eligible assets, distribute dividends, and sponsor eligible foreign employees for work and stay permits.
Further, the company can operate its business and can do the activities as below:
- To obtain a business license or import and export license
- Buy property such as land and building in the name of the company
- Hire staff
- Open a bank account
- Doing the sales and marketing
- As a sponsor to obtain a work permit and stay permit for the foreign employee(s)
- To separate the liabilities of the business with the parent company
- To register your products (cosmetics, food, medicine) so that you can sell your products within Indonesian jurisdiction
- To submit a bidding proposal to your Indonesian customers or Indonesian government
The following requirements must be met to register a PT PMA in Indonesia:
Minimum Paid-Up Capital
IDR 2,500,000,000 (two point five billion Rupiah), or approximately USD 150,000 (one hundred fifty thousand US Dollars). The company must also meet the applicable foreign investment value requirements. The required capital and investment structure should be stated in the company documents and OSS system.
Minimum Capital per Foreign Shareholder
IDR 10,000,000 (ten million Rupiah) for each foreign shareholder.
Minimum of Two Shareholders
Shareholders can be individuals and/or corporations. Most businesses are open for foreign investors, but some sectors may have a maximum ownership limit and/or may be closed to foreign business.
Board of Directors and Board of Commissioners
Minimum of 1 (one) Director and 1 (one) Commissioner. The director and commissioner can also hold shares in the company (acting as shareholders). Director and commissioner cannot be the same person.
Do You Need a Local Director? You have to appoint a local director if the appointed foreign director does not obtain a work permit & stay permit in Indonesia. Work permit and stay permit of the foreign director are crucial as they are required to open a corporate bank account and file tax reporting. If the foreign director does not plan to obtain a work permit, you must hire a local director.
A local director can support administrative activities, including signing documents and handling operational matters when the foreign director is unavailable. Requirements for opening a corporate bank account may vary depending on the bank and the appointed director’s immigration status.
Registered Office Address
The address must be in a commercial area.
Name of the Company
The name shall consist of 3 words. The words cannot contain terms meaning Corporation, Company, Limited Liability, Incorporation, or any similar name. Example of Indonesian company names: PT Tata Boga Indonesia, PT Jaya Success Indonesia. After you select the name, you must check whether it is available and not similar to other registered Indonesian companies.
No physical presence is required during the registration of company in Indonesia. The steps to register the company in Indonesia are below:
Onboarding Process
— Client to sign the service agreement and/or countersign our proposal. After that, we will issue invoice and send you the application form. Upon receipt of payment and application form, we will start the process.Requirements
— Preparing the requirements as mentioned in the previous section i.e. name of the company, registered address, composition of the board of directors and commissioners and shareholders, etc.Signing the Statement Letter and Power of Attorney
— We will provide a statement letter including the statement letter to inject the capital and power of attorney from the shareholders to us to take care the registration process.Incorporation Process
— Articles of Association, Approval from Ministry of Law and Human Right, Tax ID Number (NPWP), Business Identification Number (NIB).Apply for Work Permit and Stay Permit (KITAS)
— You can skip this step or do a parallel process with step No. 6 below if you have a local director to open the bank account.Open a Bank Account
— Limited stay permit and/or work permit is required if the director is a foreigner.Further License
— Some business activities may require a further license. In Indonesia, business activities are categorized based on risk:License Categories by Risk:
1. Low Risk → NIB
2. Medium Risk → NIB and Standard Certificate (no verification required)
3. Medium-High Risk → NIB and Verified Standard Certificate
4. High Risk → NIB and Permit (izin)
Certain business classifications may also need additional licenses. For example, e-commerce businesses need a PSE Certificate, and businesses selling products consumed by humans need BPOM registration.
Other Options To Consider
Setting up a PT PMA may not be the only option for entering the Indonesian market. The following alternatives may suit businesses that are not ready to complete full company registration in Indonesia.
Local Company Service
The minimum paid-up capital to establish a PT PMA is quite high. But this requirement does not apply to Indonesian companies whose shares are held 100% by Indonesian. Therefore, if you still need a legal entity and do not want to inject the minimum paid-up capital of PT PMA, you can consider using local company service. Under this service, business activities are carried out through an Indonesian company in accordance with Indonesian company law and applicable compliance requirements. An annual service fee applies.
Employer of Record
Employer of record is a service where we, CPT Corporate, hire your talent or staff under our company but they will work on behalf of you. Employer of record is one of the options for you if you do not want to open an entity in Indonesia, but you need someone to take care of the business. We will provide you the services with the payroll, transfer the employee salary, sign an employment contract, and advise you on the Indonesian employment law.
Post-setup Compliance
After you register a company in Indonesia, completing the business registration process is only the beginning. Your company must continue to meet the following corporate, tax, investment, and employment obligations:
Why Choose CPT Corporate?
Choosing a local partner is an important step when entering the Indonesian market. Beyond understanding local requirements, foreign investors need clear communication and support that can adapt as their business grows. Here is how CPT Corporate can help.
Local Offices in Jakarta and Bali
CPT Corporate has a main office in Jakarta and a branch office in Bali, giving foreign businesses local points of contact in Indonesia.
Experience in Company Registration
CPT Corporate has over 10 years of experience supporting foreign investors with company registration in Indonesia, helping clients navigate the establishment process.
Experience with International Businesses
CPT Corporate works with local and international clients across different business sectors. Our corporate services are designed to address the varying registration, licensing, and operational requirements businesses may encounter in Indonesia. International clients can contact our team through various channels, including WeChat (our ID: cptcorporateid).
Support Beyond Incorporation
From company registration and business licensing to tax, accounting, and immigration services, CPT Corporate can support different stages of your business journey in Indonesia, depending on your requirements and agreed service scope.
Options for Hiring Employees
If you need to hire in Indonesia, CPT Corporate also offers Employer of Record (EOR) services. Depending on your business objectives, this may be an alternative to establishing your own local entity.
What Do They Say About Our Services?
CPT helped me to establish an Indonesian foundation. They have a great knowledge to assist us in choosing a legal entity that is suitable for us. The process is quite fast and they are so helpful.
CPT has been helping our company for corporate secretarial for years, establishing PT, obtaining various licenses for our business. They have great understanding and knowledge, and communicative. Would recommend CPT with others
CPT helped me to establish an Indonesian foundation. They have a great knowledge to assist us in choosing a legal entity that is suitable for us. The process is quite fast and they are so helpful.
CPT has been helping our company for corporate secretarial for years, establishing PT, obtaining various licenses for our business. They have great understanding and knowledge, and communicative. Would recommend CPT with others
Ready to Launch Your Business in Indonesia?
Let our experts handle your business registration, paperwork, and ongoing compliance so you can focus on growing your market. Register a company with CPT Corporate and start your business in Indonesia with greater confidence.
FAQ
Can a Foreigner Register a Company in Indonesia?
Yes. Foreign companies can establish an Indonesian company through a PT PMA, subject to the business activity, foreign ownership rules, and applicable investment requirements. The appropriate structure also depends on what you plan to do in Indonesia, so reviewing your business model and KBLI before incorporation can help prevent structural or licensing issues later.
Can Foreigners Own 100% of an Indonesian Company?
Foreign ownership can reach 100% in business activities that are open to full foreign investment under Indonesia's applicable investment regulations. However, some sectors have ownership restrictions or specific conditions, so you should confirm the permitted ownership level for your intended business activity before registering the company. CPT Corporate can assess your proposed business activities and ownership structure before incorporation.
What Type of Company Should a Foreign Investor Establish in Indonesia?
For foreign investors who intend to conduct commercial activities in Indonesia, a PT PMA is generally the relevant corporate structure. However, a PT PMA is not automatically the right solution for every foreign business, as a representative office or Employer of Record arrangement may be more suitable depending on your intended activities. CPT Corporate can review your business objectives and recommend the appropriate setup before you commit to incorporation.
How Much Does It Cost to Register a Company in Indonesia?
There is no single company registration fee that applies to every business. Your total setup cost can include government registration fees, notary and professional fees, paid-up capital, licensing requirements, office arrangements, and other costs depending on your business activity and structure. CPT Corporate can assess your requirements and provide a clearer breakdown of the costs involved before you proceed.
Do I Need to Be in Indonesia to Register a Company?
Foreign investors do not necessarily need to be physically present in Indonesia throughout the company registration process. The exact documentation, signing, and verification requirements depend on your circumstances and the company structure being established. CPT Corporate can coordinate the incorporation process for clients based overseas and help identify which steps require your involvement.
Do I Need a Local Director for a PT PMA?
A PT PMA must have the required management structure, and whether you need a local director depends on factors such as your proposed management arrangement and the immigration status of foreign directors. If a foreign director will perform their role in Indonesia, the appropriate immigration and work authorisation requirements also need to be considered. CPT Corporate can help structure the directorship and related immigration requirements as part of the company setup.
How Long Does It Take to Register a Company in Indonesia?
The timeframe depends on the completeness of your documents, the proposed business activities, ownership structure, and any additional licensing requirements. Incorporation itself may be relatively straightforward, but the full setup can take longer when sector-specific licences or other registrations are required. CPT Corporate can review your requirements at the start and provide a more realistic timeline based on the scope of your setup.
What Happens After Registering a Company in Indonesia?
Company registration is the beginning of your Indonesian business operations, rather than the end of the process. Depending on your activities, you may still need to manage business licences, tax administration, LKPM reporting, beneficial ownership reporting, employment obligations, and ongoing corporate compliance. CPT Corporate can continue supporting these requirements after incorporation so your company is set up with its ongoing obligations in mind from the beginning.
Do I Need to Establish a Company to Do Business in Indonesia?
Not necessarily. The appropriate route depends on whether you intend to generate revenue in Indonesia, establish a physical presence, hire local employees, conduct market research, or perform other activities. Depending on your objectives, options such as a PT PMA, representative office, or Employer of Record arrangement may be relevant, and CPT Corporate can help you determine which structure fits your intended activities.
How Do I Choose a Company Registration Agency in Jakarta?
Choose an agency based on its experience with foreign-owned companies, understanding of Indonesian business licensing, and ability to support your needs after incorporation.
Ask for a clear breakdown of professional fees, government and notary charges, deliverables, and recurring costs.
You should also confirm who will handle each stage, how progress will be communicated, and whether support for tax, licensing, immigration, or other relevant requirements is included. Before signing an agreement, make sure the proposed scope and responsibilities are documented.
Can CPT Corporate Handle the Company Registration Process for Me?
Yes. CPT Corporate can assist foreign investors with company incorporation, documentation, business licensing, and related requirements in Indonesia. The scope of support can be tailored to your business activity, ownership structure, and plans for operating in Indonesia. Contact CPT Corporate to discuss your requirements and determine the next steps for establishing your business.
