Setting Up a Limited Company in Indonesia Made Simple in 2025

Indonesia has become one of the most attractive destinations for entrepreneurs and investors in Southeast Asia. With its rapidly growing economy, abundant resources, and improving ease of doing business, the country offers tremendous opportunities for both local and foreign businesses.

One of the most popular business structures in Indonesia is the Limited Liability Company (Perseroan Terbatas or PT). This structure provides legal protection for shareholders and facilitates business operations by ensuring compliance with Indonesian regulations.

However, for first-time investors and business owners, navigating the company registration process in Indonesia can be complex. This guide will break down each step in detail, providing everything you need to know to set up a limited company (PT) in Indonesia efficiently and correctly in 2025.

Why Choose a Limited Company (PT) in Indonesia?

A Perseroan Terbatas (PT) is the most preferred business structure in Indonesia for several reasons. Whether you’re a local entrepreneur or a foreign investor, setting up a PT offers multiple advantages:

• Legal Protection: The PT structure ensures that the company is treated as a separate legal entity, limiting the liability of shareholders to their respective investments. This means that personal assets of shareholders are protected in case of business debts or lawsuits.
• Ownership Flexibility: Depending on your needs, you can establish either a Local PT (100% Indonesian-owned) or a Foreign-Owned PT (PT PMA) (allowing foreign investors to hold shares). Foreign ownership is subject to Indonesia’s Positive Investment List, which outlines which industries are open to foreign investment.
• Credibility and Market Access: Registering a PT enhances the business’s reputation, making it easier to secure partnerships, contracts, and government projects.
• Access to Funding: A PT can attract local and international investors, apply for bank loans, and even issue shares in the future.

For businesses looking for long-term growth and stability in Indonesia, a PT is the most suitable legal structure.

Step-by-Step Guide to Setting Up a Limited Company in Indonesia

1. Decide on Your Business Structure

Before proceeding, you must determine whether your company will be a:

• Local PT (Perseroan Terbatas Lokal): This is a company fully owned by Indonesian citizens or legal entities.
• Foreign-Owned PT (Perseroan Terbatas Penanaman Modal Asing – PT PMA): A company with foreign ownership, subject to government regulations on foreign investments.

Foreign investors should refer to Indonesia’s Positive Investment List, which defines sectors that allow full foreign ownership, partial foreign ownership, or require a local partner.

2. Fulfill Minimum Capital Requirements

Indonesia classifies PT companies based on their capital investment:

For Foreign-Owned PT (PT PMA), the minimum investment plan required is IDR 10 billion, with at least IDR 2.5 billion in paid-up capital.

It is important to have proof of capital deposits, as banks and regulatory authorities will require this during registration.

3. Prepare Company Documents

To successfully register a PT, you must prepare the following essential documents:

1. Articles of Association (Akta Pendirian) – This document, drafted by a notary, outlines the company’s objectives, shareholder details, business activities, and governance structure.
2. Deed of Establishment (SK Kemenkumham) – Issued by the Ministry of Law and Human Rights, this document legally recognizes the company.
3. Tax Identification Number (NPWP) – Obtained from the Directorate General of Taxes, required for tax compliance.
4. Business Identification Number (NIB) – Issued through the Online Single Submission (OSS) system, serving as the company’s primary business license.
5. Company Domicile Letter (Surat Keterangan Domisili Perusahaan) – Proof of the company’s registered business address.

Ensuring accuracy in document preparation will prevent delays in the registration process.

4. Register the Business via the OSS System

Indonesia’s Online Single Submission (OSS) system is an online platform that simplifies business registration. The steps are:

1. Create an OSS Account – Register on the OSS portal with your company details.
2. Submit Required Documents – Upload the prepared documents, including company deeds and tax registration.
3. Obtain Business Identification Number (NIB) – This serves as a universal business permit.
4. Apply for Additional Licenses (if needed) – Some businesses require extra permits, which can also be obtained via OSS.

Using OSS significantly reduces processing time and allows businesses to track their application status online.

5. Open a Corporate Bank Account

After obtaining the company registration, you must open a corporate bank account for business transactions. Requirements vary by bank but generally include:

• Company Deed of Establishment
• Tax ID (NPWP)
• Business Identification Number (NIB)
• Shareholders’ and Directors’ Identification Documents

A corporate account is mandatory for tax reporting and financial credibility.

6. Obtain Additional Business Licenses

Depending on the industry, additional licenses may be required, such as:

• Trading License (SIUP) – For businesses engaged in general trading.
• Construction License (IUJK) – Required for construction-related activities.
• Import/Export License – Necessary for businesses dealing with international trade.

Proper licensing ensures compliance with Indonesian trade and labor laws.

Taxation & Compliance for a PT in Indonesia

Once your company is operational, it must comply with Indonesia’s tax regulations, which include:

• Corporate Income Tax: 22% as of 2025.
• Value-Added Tax (VAT): 11% for applicable goods and services.
• Employee Tax & Social Security Contributions: Businesses must deduct and report taxes for employees.

Failing to meet tax obligations can result in hefty penalties and legal issues, so regular tax filing and compliance are crucial.

Conclusion

Setting up a limited company (PT) in Indonesia in 2025 is now more streamlined than ever. With simplified registration via the Online Single Submission (OSS) system, clear regulatory requirements, and improved business policies, entrepreneurs can establish their companies with minimal hassle. However, navigating Indonesia’s legal framework, tax compliance, and industry-specific licensing can still be complex without expert guidance.

This is where CPT Corporate comes in. As a trusted business consultancy, CPT Corporate specializes in company registration, legal compliance, and business licensing in Indonesia. Our team of professionals ensures that every step—from company incorporation and documentation to tax registration and banking setup—is handled efficiently and in full compliance with Indonesian laws.

Whether you’re a local entrepreneur or a foreign investor, CPT Corporate provides tailored solutions to help you set up your limited company (PT) quickly and smoothly. Contact us today to get expert assistance and kickstart your business in Indonesia with confidence!