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Company Formation Indonesia

Updated on Thursday 03rd May 2018

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Indonesia has the largest economy in Southeastern Asia, being also a country that has recently started to attract foreign entrepreneurs. During the last years the growing economy has been controlled mainly by foreign companies and by private Indonesians.

Indonesian types of business entities

In order to set up a company in Indonesia, you need to decide which type of business is the best choice for you: the wholly foreign owned entity, the limited liability company, the joint venture, the branch or the representative office or the nominee trading company. 
Although each type has its advantages, the most commonly preferred by the foreign investors is the limited liability company setup. This type in Indonesia is also known as PT (Perseroan Terbatas) and it needs approval from the Capital Investment Coordinating Board prior to conducting any business there. The minimum share capital is 300,000$. 

Another convenient type of business that a foreign investor can choose to set up in Indonesia is a wholly foreign owned company. Also known as PMA (Penanaman Modal Asing), it can be 100% foreign-owned and controlled for the first fifteen years. 

Requirements for opening a company in Indonesia

- a minimum of one director that has to be an Indonesian resident,
- at least two shareholders,
- a commissioner (similar to a chief operating officer or a senior manager of a company),
- a share capital of 300,000$,
- an investment plan for 1,2 million$ required.
An important advantage with registering a company in Indonesia is that a PMA can operate anywhere in the country.

Steps for a company registration in Indonesia

1) You first need to choose a name for the company and then pay a fee for obtaining the name approval.
2) The company's documents need to be notarized.
3) An application for the establishment certificate approval must be submitted to the Ministry of Law and Human Rights.
4) Then you have to apply for the certificate of the company domicile and receive the approval.
5) Furthermore you have to pay the fees for legal services at a bank, then apply for a permanent business trading license at the Ministry of Trade and also obtain the company's registration certificate at the Local Government Office.
The whole process of registering a company in Indonesia can take several weeks to be completed depending on the type of business setup.
For more information about forming a company in Indonesia, please contact our specialists.



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