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Company registration in Indonesia
Set up a foreign owned company in Indonesia (PT PMA) in five working days.
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Foreign owned company (PT PMA)
Key requirements to open a company in Indonesia
The process of setting up a company depends on your business classification. However, here are the four key requirements that all foreign-owned companies must follow.
- At least two shareholders
- Shareholders can be both individuals and corporations. Depending on your business classification there might be a limit to the maximum foreign ownership.
- At least one director and one commissioner
- Directors and commissioners can but don’t have to be shareholders. The director is responsible for the operations of the company while the commissioner oversees the work of commissioners.
- Minimum paid up capital of at least Rp. 2.5 billion (~200,000 USD)
- The capital is expected to be transferred to your corporate bank account after the company registration is completed. Some industries have higher capital requirement.
- Registered commercial address
- Your company must use a registered address that is in a commercial building. Will be provided by Emerhub.
Knowing that bureaucracy in Indonesia is hard and time consuming, having a competent and experienced business facilitator is key in succeeding and navigating through the endless paper work and licencing necessary to operate a company in the country. Emerhub has proved to have a team of dedicated, honest and hard working staff.
Extremely great service. Always reply very friendly, quickly and keep you updated. This is customer service as it should be. Thanks!
The process of company registration in Indonesia
Registering a company in Indonesia takes about five working days.
Should you register a company in Indonesia?
While Emerhub makes it easy to set up a company in Indonesia, there are many scenarios where you don't need one. Let's take a look at them.
- Will you earn revenue in Indonesia?
- A PT PMA allows you to conduct commercial activities and receive payments in Indonesia. However, if your Indonesian entity won't generate revenue, such as delivering quality control, providing local support, etc., then a representative office might be an easier solution.
- Hiring employees in Indonesia
- There are several ways to hire employees in Indonesia. If that's your primary objective, then the easiest way to hire employees in Indonesia is to use Emerhub an Employer of Record. This way your emplyoees are formally hired by Emerhub while working for your company. That spares you from having to manage payroll, report taxes, etc.
- Buying a shelf company vs. registering a new entity
- Shelf companies are empty legal shells with a clean history. The key benefit is that it allows you to join tenders that require your company to have (usually) at least three years of operations in Indonesia.
The information we need to register your company
Before we can file your company registration application, we will need to know what your business will do, who will own it and where will it conduct business.
- Choosing the correct business classification (KBLI)
- Foreign ownership restrictions depend on your business classification. Many business classifications are in the Negative Investment List which restricts or in some cases even forbids foreign ownership.
- Capital table
- Your company must have at least two shareholders. If your business classification is in the Negative Investment List, then you must also have local shareholders that take up the required amount of shares. The minimum paid up capital is Rp. 2,5 billion which will be divided between the shareholders based on the number of shares they own.
- Directors and commissioners
- Directors are responsible for the daily operations of the company. Commissioners oversee the work of directors on behalf of the shareholders.
Complete solution
Everything you need to register and operate a company in Indonesia
- Company incorporation
- Set up of your foreing owned limited liability company (PT PMA) in Indonesia.
- Registered address
- Use Emerhub's commercial address to take advantage of our accellerated 5-day company registration service or provide your own commercial address.
- Investment reporting
- Once the company is registered, it has to submit quarterly investment reports (LKPM). Emerhub will submit those reports on behalf of you.
- Accounting and payroll
- Make sure your books are in order, your staff gets paid correctly and you don't pay more taxes than you have to.
Price
$1500 Registration fee plus $150* Monthly accounting and compliance
- PT PMA registration
- Registered commercial address
- Bank account opening
- Payroll
- Quarterly investment reporting
- Tax and accounting
*Includes up to 50 monthly transactions and 3 employees.
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