Requirements to Incorporate a Company in Indonesia

With the skyrocketing economy and the ongoing reforms, many people are looking forward to incorporating a company in Indonesia. For foreigners wanting to incorporate a company in Indonesia, they are only allowed to operate under 2 types of companies. These are the Foreign Investment Limited Liability Company and the Representative Office. The former is known for its Indonesian name as Perseroan Terbatas Penanaman Modal Asing or PT PMA while the latter’s name is the Kantor Perwakilan Perusahaan Asing or KPPA. We can provide you the things that you need.

What is the difference between PT PMA and KPPA? PT PMA is an incorporated company that aims to generate an income while KPPA is a representative office, suitable for those foreign business entities that don’t intend to make money.

  1. Capital Requirement. The capital requirement to incorporate a company in Indonesia is not cheap. The country requires the applicants to have 10 billion IDR (approximately 710 Thousand USD), of which, 25% should be coming from the shareholders.
  1. The minimum number of shareholders is at least two.
  1. There should be at least one local director of the company.
  1. The company should have one commissioner to act in incorporating the company. He can be a foreigner provided that he has a working permit in Indonesia, also known as KITAS. A local commissioner may also be appointed if the former is not available.

Steps to incorporate a company in Indonesia

  1. Get a reservation for the name of your company and have your incorporation documents notarized. You need to bring all your incorporation documents and have them notarized by the Ministry of Law and Human Rights.
  1. Pay the registration fee. After your incorporation documents have been notarized, proceed to the Trade Register to pay and obtain a receipt.
  1. Submit the notarized incorporation documents. After you paid your fees, proceed to the Ministry of Law and Human Rights to file your papers. The ministry will approve your papers if everything goes right.
  1. Obtain a business license. Depending on the nature of your business, obtain a business license from the proper ministry or government authority.
  1. Register your company as an employer. Since you will have the manpower, you need to register your company as well as an employer. You can do this at the Ministry of Manpower in Indonesia.
  1. Register your company for social security and purposes. After you register your company as an employer, it’s now time to register your company as a provider of social security for your employees.
  2. Obtain tax and VAT number. Paying taxes is one of your obligations as a businessperson. Get and apply for these to facilitate your payment.

Do you need an Incorporation Company in Indonesia?

If you need further advice on why you should Incorporate a Company in Indonesia, you can contact 3E Accounting. They are among those known providers for register business Indonesia that can offer quality setup for your company.