Setting up a business in Indonesia is an exciting opportunity for many foreign entrepreneurs. The country’s growing digital economy, strategic location, and investment-friendly reforms have made it one of Asia’s most attractive markets for new ventures.
However, before signing the first notarial deed or applying through the OSS (Online Single Submission) system, foreign founders need to navigate one crucial step: document preparation and legalization. Missing, unverified, or untranslated paperwork is one of the top causes of incorporation delays for foreign investors in Indonesia.
This guide will help you understand what to prepare, what needs legalization or translation, and how to make sure your company formation process goes smoothly.
1. Why Documentation Matters in Indonesian Company Formation
Indonesia requires every new company — especially foreign-owned ones (PT PMA or Perseroan Terbatas Penanaman Modal Asing) — to prove that its shareholders and managers are legitimate, properly authorized, and financially compliant.
Authorities such as the Ministry of Law and Human Rights (AHU) and the Investment Coordinating Board (BKPM) rely heavily on verified documentation to process registration and issue licenses.
For foreign founders, this means that every foreign-issued document (from passports to incorporation certificates) must be legalized or apostilled, translated into Bahasa Indonesia, and accepted by the notary before company establishment can proceed.
2. Document Checklist for Foreign Founders
Below is a comprehensive checklist that every foreign investor should review before beginning the incorporation process.
A. Personal Identification (for Each Individual Founder or Director)
- Valid passport copy (ensure at least 18 months validity)
- Proof of residential address (utility bill, bank statement, or rental contract)
- Curriculum Vitae (CV) or professional profile (useful for visa or director appointments)
Tip: Keep both digital and certified paper copies of all identity documents. Indonesian notaries will typically require legalized copies for the company deed.
B. Corporate Documents (for Foreign Corporate Shareholders)
- Certificate of Incorporation or Registration
- Articles of Association or equivalent
- Board Resolution authorizing the investment in Indonesia
- Power of Attorney (PoA) for a local representative, properly notarized and legalized
These documents prove the legal existence of the foreign entity and its authority to hold shares in the Indonesian company.
C. Indonesian Company Formation Documents
- SK Kemenkumham (Surat Keputusan Kementerian Hukum dan HAM) — the official approval of legal entity establishment issued by the Ministry of Law and Human Rights after your notarial deed (Akta Pendirian) is submitted.
- Deed of Establishment notarized in Bahasa Indonesia
- Statement Letter of Paid-Up Capital and Investment Plan (especially for PT PMA)
- Proof of Business Address (lease agreement or ownership document)
- Tax Identification Number (NPWP) application once the deed is approved
- Sector-specific licenses (for industries such as finance, health, or import/export)
D. Financial and Banking Documents
- Bank reference letter or account opening forms
- Proof of source of funds for investment capital
- Audited financial statements (if applicable)
- Share Certificate (Surat/Sertifikat Saham) — formal proof of ownership of shares issued to each shareholder after company establishment
Having transparent financial documentation not only satisfies regulators but also simplifies future banking, accounting, and capital verification processes.
E. Visa and Employment-Related Documents (If Founders Will Work in Indonesia)
- Employment or management contract
- Health certificate (for visa requirements)
- Passport and photographs
- Diploma or academic certificates (apostilled and translated if required)
3. Legalization, Apostille, and Translation: Step-by-Step Process
Indonesia became a member of the Apostille Convention through Presidential Regulation No. 2 of 2021, simplifying the legalization process for documents from participating countries. However, if your country is not part of the convention, the traditional consular legalization route still applies.
Here’s a simple roadmap:
- Verify the origin
Identify whether the document comes from an Apostille Convention member country. - Apostille or Consular Legalization
- Apostille: If from a member country, obtain an apostille from your country’s competent authority.
- Consular Legalization: If not, go through the Indonesian embassy or consulate for verification.
- Sworn Translation into Bahasa Indonesia
All foreign documents must be translated by a Sworn Translator (Penerjemah Tersumpah) recognized by the Indonesian government. - Submit to Indonesian Notary
The notary will attach all legalized and translated documents to your Deed of Establishment, submit them to the Ministry of Law and Human Rights (AHU), and proceed with OSS registration to obtain the NIB (Business Identification Number).
4. Common Mistakes and How to Avoid Them
Even experienced entrepreneurs can face delays because of incomplete documentation. Here are common pitfalls — and how to avoid them:
- Last-minute legalization: Start early. Apostille or consular chains can take several weeks.
- Unsworn translations: Always use an officially registered translator; generic translations may be rejected.
- Inconsistent company names: Ensure your foreign and Indonesian documentation use the same entity name.
- Outdated or expired documents: Many authorities only accept documents issued within the last 3–6 months.
- POA issues: Draft Powers of Attorney carefully to reflect proper authority and scope.
- Banking KYC hurdles: Coordinate with a local bank early; requirements differ by institution.
5. Sample Quick Checklist (For Download or Print)
✔ Personal Identity Documents
✔ Corporate Shareholder Documents
✔ Indonesian Notarial and Licensing Documents
✔ Financial & Bank Documents
✔ Apostille / Legalization Certificates
✔ Sworn Bahasa Translations
✔ Visa & Employment-Related Documents
Preparing these before engaging a notary saves time and reduces back-and-forth during registration.
6. The Final Step: Registering Your Company via OSS
Once all documents are legalized and translated:
- Your notary submits the Deed of Establishment for approval to the Ministry of Law and Human Rights (AHU).
- After approval, registration continues through the OSS (Online Single Submission) platform to obtain your NIB (Business ID Number) and relevant business licenses.
- Finally, you open a bank account, deposit the required paid-up capital (for PT PMA usually IDR 2.5 billion or more), and begin operations.
7. Why Being Document-Ready Saves Time and Money
Foreign founders often underestimate how procedural Indonesia’s business formation process can be. Every legalization, translation, and verification step is part of building credibility in the eyes of the government and financial institutions.
Being document-ready means:
- Shorter waiting time for incorporation
- Smoother licensing and banking setup
- Fewer rejections or document revisions
- Easier path for hiring expatriates later
In short, it’s the most cost-effective “first investment” you can make before launching in Indonesia.
Frequently Asked Questions (FAQ)
- Do I need to translate every foreign document into Bahasa Indonesia?
Yes. All foreign documents submitted to Indonesian authorities must be translated by a sworn translator. - What is the difference between apostille and legalization?
An apostille is a simplified international authentication accepted between member countries. Legalization is the traditional embassy verification process for countries not part of the Apostille Convention. - How long does it take to legalize documents for Indonesia?
Depending on your country of origin, it can take anywhere from a few days to several weeks. Starting early avoids costly delays. - What if my country is not part of the Apostille Convention?
You will need to go through consular legalization via your country’s foreign ministry and the Indonesian embassy or consulate. - Can CPT Corporate assist with document legalization or translation?
Yes. CPT Corporate works closely with licensed notaries, sworn translators, and regulatory consultants to help clients legalize and prepare all required documents for smooth PT PMA establishment.
Conclusion
Indonesia offers tremendous opportunities for global entrepreneurs — but only those who take documentation seriously will unlock its potential smoothly.
By preparing, legalizing, and translating your documents correctly, you’re not only complying with the law but also ensuring a faster, safer, and more transparent setup process.
If you’re unsure where to start, CPT Corporate can guide you through every step — from document preparation and legalization to company establishment, licensing, and ongoing compliance.
Ready to start your business in Indonesia?
Let CPT Corporate simplify your process. Our experts can help you prepare the required documents, handle translations, coordinate legalization, and register your PT PMA efficiently.
Contact CPT Corporate today to schedule a free consultation and receive your personalized company formation checklist.
