Nowadays, registration of a company in Indonesia is considered a great resolution for those investors and entrepreneurs who are seeking enduring development rather than quick achievements. The demand profile of the nation is wide, urbanization is steady, and consumption continues to expand. Nevertheless, entering the market involves completion of the range of stages. It is also significant to cooperate with various authoritative bodies. Early mistakes may elongate the company formation in Indonesia. That’s why you should involve a specialist who assists you in the process and navigate through the local rules for a better comprehension.
The article will familiarize you with the vital aspects about registration of a business (firm) in Indonesia.
Indonesia company formation: Overview of rules
Regional authorities use sector-based classifications known as KBLI codes to determine what kinds of activities a newly created structure may undertake. Each activity falls into a category that defines what additional steps are needed before operations can start.
Nearly all key interactions now run through the national OSS portal. Through it, companies obtain a NIB, which functions as the main gateway for further authorisations and, where applicable, customs-related permissions.
Capital conditions differ depending on the form chosen. In 2025, a structure partly or fully held by non-locals can begin with a capital level of IDR 2.5 billion, a notable decrease from earlier expectations. The funds ought to be sent into a local fiscal institution and held for a defined period unless deployed for operations, property acquisition, equipment, or other legitimate business purposes.
Advantages of company incorporation in Indonesia
- Full functional freedom. Non-local backers have the opportunity to issue invoices, sign long-term supply contracts, employ workers, run marketing campaigns, and rent or purchase property;
- The centralized OSS portal reduces red tape and shortens the timeline that used to frustrate newcomers. Meanwhile, the new capital demands gives more opportunities for medium-sized backers who encountered high entry costs earlier;
- The ability to create an account in a fiscal institution after a company incorporation Indonesia. This considerably eases cash flow planning, supplier relations, payroll, and local acquisition.
Types of organizations
- PT PMA — a LLC partly or fully held by non-locals. It enables revenue-generating activity across a wide range of sectors, subject to KBLI lists.
- Local PT — a LLC held by domestic individuals or firms. Non-locals often consider nominee arrangements, but such arrangements are legally fragile and frequently discouraged.
- RO — intended for market observation, coordination with partners, or brand promotion. It cannot issue invoices, participate in trade, or make earnings in the boundaries of the country.
Conditions for Indonesia Company registration
- Minimum two owners, one director (who is obliged to live here in order to handle regional matters), and one commissioner are usually demanded by a PT PMA mode;
- Official correspondence must be sent to a physical commercial address. A virtual office is permitted in many places as long as it conforms with local zoning rules;
- The regional language must be used to prepare the company deed. It describes the ownership, governance, actions, and structure. Prior to being submitted to the pertinent ministry, it must be notarized. After the deed is recorded in the state system, the enterprise moves to OSS to obtain its NIB and any sector permits tied to its KBLI codes.
- After the NIB is issued, a local bank account can be opened. Typically, banks request a copy of the agreement, ID papers, and the information of authorized signatories.
- Immigration procedures for non-local managers or technical personnel should also be taken into consideration by foreign investors. This step frequently slows down the initial setup more than beginners anticipate.
What you have to do after creation of an enterprise
- Maintain periodic investment activity statements (LKPM) through the OSS platform.
- Even if the entity hasn’t made any money yet, make sure to submit the quarterly or monthly tax returns on time. Notifications of zero activity are still required.
- Payroll should be handled correctly, including calculating and withholding wage tax and ensuring that all employees have made their required social welfare contributions.
- If the company is classified as medium- or high-impact under the KBLI, obtain any complementary operating permits. Some industries demand more than the bare minimum of authorizations.
- Maintain the company’s records, hold the necessary directorate and shareholder assemblies, and take minutes. Any modifications to the directors, address, or funds stock must be promptly reported to the appropriate authorities.
Taxation of enterprises
Taxation follows several layers. Corporate income is taxed at a set nationwide rate; additional levies exist for salaries, dividends, and cross-border transactions. VAT applies to many sectors, depending on turnover and activity type.
Local rules demand entities to keep up proper bookkeeping and retain documents for audits. A structured appropriate system is vital from the start, especially for those planning to scale operations.
Our offerings
Eternity Law International offers support throughout the whole course of action. You can take a look at the offerings below we will provide you with.
- Assessment of the most suitable model that correlates with your activity plans;
- Drafting and notarising the founding papers;
- Selecting KBLI codes which are appropriate for the intended activity scope;
- Handling OSS submissions, NIB issuance, and sector-specific authorisations;
- Preparing investment progress updates (LKPM);
- Assisting with tax setup, payroll structuring, and continuous filings;
- Coordinating creation of an account in a fiscal institution;
- Providing long-term operational support once the company begins activity;
- Assisting in re registering a company in Indonesia.
Our specialists have significant comprehension combined with experience in a number of industries. With the appropriate assistance the course of action will be smoother and less burdensome.
To find out more information on how to register a company in Indonesia online, contact us.
You can also consider purchasing a ready-made organization for sale.
Conclusion
If you plan everything clearly and understand the local procedures, the successful launching of a new organization is guaranteed. The country offers a lot of opportunities for development, mainly for firms that have long-term strategic goals. The process can be demanding. Nevertheless, proper sequencing and expert support can considerably reduce delays and mistakes during the course of action.
Eternity Law International is ready to help backers who want a clean, predictable entry path and stable long-term operations. If you’re preparing to expand into this region, start with a structured plan. It is essential. We can help you in building it.
Eventually, we can help you re register company in Indonesia if you need it to be done.
FAQ
What is the procedure and requirements to set up a company in Indonesia?
First, a name must be chosen and approved. The next step is to draft and notarize a deed in the local language that covers ownership, structure, and planned activities. The enterprise becomes legally recognized after the deed is approved by the government ministry
Getting a TIN and registering via the national OSS system, which provides the ID number utilized by all state services, are the next steps. Before operations can begin, complementary sector permits might be needed, defined by the type of entity.
Creating an account is the last move. It enables regular transactions and a capital infusion.
Can a foreigner own 100% of a business in Indonesia?
Yes, it is possible in many areas of the entrepreneurship sector. The extent of allowed ownership depends on how the activity is classified under the national investing list. Some fields are entirely unrestricted, others permit only partial non-local ownership, and a few remain protected, meaning outside investors must partner with local participants. For most mainstream commercial fields, however, holding the entire stake is allowed.
It is important to remark that the local representative director has to be appointed.
Can foreigners open business in Indonesia?
Registration of a company for foreigners in Indonesia is possible. Creating a PT PMA, a kind of LLC designed mainly for enterprises with non-local funding, is the most popular option. Such a structure can enter into contracts, hire staff, and make money in sectors that were approved. Establishing a liaison office is an additional choice, but it only permits coordination and analysis; it does not permit cash-producing endeavors. The decision is based on whether the investor wants a more subtle presence or active market operations.
How long does it take to register a company in Indonesia?
If the form is uncomplicated, paperwork is in order, and no special sector permits are needed, the setup can be carried out in just a few working days when all papers are prepared. In practice, most investors should expect a longer timeframe, since sector-specific approvals, notarial scheduling, and OSS processing can extend the course of action. Situations that involve more complex enterprise activities or complementary authorizations often push the timeline into several weeks.
What are the tax rates for the companies in Indonesia?
Organizations pay tax on net profit at the national rate. Additional levies apply to certain transactions, including withholding on specific services and higher rates on cross-border payments. Most activities are subject to VAT, usually 10%. The total tax burden depends on the firm type, entity structure, and any dealings with overseas parties.