Company Establishment in Indonesia
Engaging in a company registration in Indonesia is the first step to expanding your business operations legally into the country. There are many options business owners can opt for their company registration in Indonesia, but the most common types are a Foreign-Owned Company (PT PMA) or Representative Office. Each has its benefits, and one may be better suited for you based on your business expansion objectives.
Types of Legal Entities for Foreign Investors in Indonesia
PT PMA (Foreign-owned Company)
The PT PMA is an optimal choice for foreign investors seeking full control in Indonesia with up to 100% foreign ownership or looking for company registration in Indonesia, subject to sector-specific regulations.
Representative Office for Business Trading (KP3A)
KP3A is specialized office for business trading, but restricted from generating financial income. Investors can build and operate this business structure anywhere all across Indonesia.
General Representative Office (KPPA)
KPPA is ideal for foreign investors testing the Indonesian market and engaging in non-sales activities like customer service, marketing, and client outreach.
Representative Office for Construction Company (BUJKA)
Establishment of BUJKA is intended for foreign construction companies. This business structure enables collaboration on large-scale projects through joint operations with a local company (Local PT), without the need for a construction license (SIUJK).
Enter the Indonesian Market and Beyond
With a decade of experience and a vast network, Indo Prime Indonesia has emerged as a distinguished consulting company, providing comprehensive corporate services to cater to your business needs.
Internal Process
Consultation
Talk to our experts about your expansion objectives and how to do company registration Indonesia.
Collecting Required Documents
Provide us with all the documents required for company establishment in the company registration Indonesia process.
Document Review
We ensure your submitted documents are aligned with the latest company registration Indonesia regulations.
Drafting
We will draft your application letter addressed to related government bodies for the company registration Indonesia process.
Documents Submission
We file all your documents to the related government bodies on your behalf for your company registration Indonesia.
External Process
Registration of Indonesian Tax ID (NPWP)
An NPWP is required to secure other business licenses, open a bank account, and fulfilling tax obligations.
Obtain Indonesian Business Identification Number (NIB)
A NIB is required for a company registration Indonesia to conduct immediate business operations.
Deed of Incorporation (For PT PMA)
A Notary should draft and legalized your Deed of Incorporation.
Approval of Legal Entity (For PT PMA)
After submission of Deed of Incorporation by the notary, the Ministry of Law and Human Rights will give approval.
Securing Other Licenses (For PT PMA)
Comparisons of Company Establishment Options for Foreign Investors in Indonesia
PT PMA
- Allows profit-generating business activities
- Allows up to 100% foreign ownership
- Ideal for business sectors that are open for foreign investment
- Minimum two shareholders (corporate/individual)
- Minimum one local director
- Must have at least one commissioner (can be a foreigner with a valid work permit)
- Minimum IDR 10 billion of investment
- At least IDR 10 billion should be provided as a paid-up capital
- Full control of business
- Eligible to sponsor work and stay permit for foreign employee
KPPA
- Not allowed to generate financial income
- Allows up to 100% foreign ownership
- Ideal for testing the waters before setting up a fully-fledged company
- Works best for non-sales activities
- No shareholder or director required
- One chief executive is sufficient
- No capital is required
- Low incorporation cost
- Eligible to sponsor work and stay permit for foreign employees
KP3A
- Not allowed to perform any sales and purchase activities
- Allows up to 100% foreign ownership
- Ideal for liaising, promotional, and market survey activities
- No shareholder or director required
- One chief executive is sufficient
- No capital is required
- Low incorporation cost
- Eligible to sponsor work and stay permit for foreign employees
- Can open a branch office in any part of Indonesia
BUJKA
- Permitted to engage in large-scale construction projects within a joint operation with a Local PT
- Best suited for the larger global construction companies
- No local shareholders are required
- No capital is required
- Low incorporation cost
- Allowed to work on a construction project in a joint operation with a Local PT without acquiring a construction license (SIUJK)
- Eligible to sponsor work and stay permit for foreign employee
Get in touch with Us
Frequent Asked Questions
There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.
Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.
What Our Clients Say
© 2024 Indo Prime Indonesia. All Right Reserved.