How to Register a Company in Indonesia: Step-by-Step Guide for Foreigners
r123-share-title

Published on October 28, 2025 · 4 min read · by Imam

This article provides a clear, step-by-step guide on how to register a company in Indonesia, whether you’re a foreign entrepreneur, an expat, or a representative of a global firm.

Setting up a company in Indonesia is an exciting opportunity for foreign investors seeking to tap into Southeast Asia’s largest economy.

With over 270 million people and a growing middle class, the country offers tremendous business potential.

However, registering a company in Indonesia involves a specific legal process that may seem complex without proper guidance.

Understanding the Types of Legal Entities

Before registering, you must choose the appropriate legal structure.

The most common forms of business entities in Indonesia are:

PT (Perseroan Terbatas): A limited liability company, available in two types:
- Local PT: Fully owned by Indonesian citizens.
- PT PMA (Penanaman Modal Asing): A foreign-owned company structure.
Representative Office: For foreign companies that wish to conduct marketing or liaison activities, but not revenue-generating business.

For most foreign investors intending to run full operations, PT PMA is the most relevant structure.

Looking for a strategic business location in BSD City’s growing market?

West Village Business Park is surrounded by luxury homes, malls, hospitals, and office hubs, offering direct access to a large captive market.

An ideal choice for professionals and investors seeking long-term value in a fully developed area.

Requirements for Foreign-Owned Companies (PT PMA)

To establish a PT PMA, you need:

Minimum investment plan of IDR 10 billion (approx. USD 650,000), including capital and operational funding.
Minimum placed and paid-up capital of IDR 10 billion.
Two shareholders (can be individual or corporate).
One local director and one commissioner (director can be foreign).
A business location in Indonesia with valid address documentation.

Foreign ownership limits vary depending on your business sector and are regulated by the Positive Investment List issued by BKPM (Indonesia Investment Coordinating Board).

Step-by-Step Company Registration Process

Here’s the general process to register a company in Indonesia:

a. Reserve Company Name

You must choose a unique company name and reserve it through the Ministry of Law and Human Rights.

b. Draft the Deed of Establishment

A notary will draft your company’s Deed of Establishment, which includes Articles of Association. This must be signed by all shareholders and legalized.

c. Obtain Legal Entity Status

Submit the Deed to the Ministry of Law and Human Rights to get official recognition of your company’s legal entity status.

d. Register Through the OSS System

The Indonesian government uses the Online Single Submission (OSS) system for business licensing. Through OSS, you will obtain:

Business Identification Number (NIB)
Business license
Location permit
Environmental permit (if applicable)

e. Tax Registration and BPJS

You must also:

Obtain a Taxpayer Identification Number (NPWP) at the local tax office.
Register for BPJS (Social Security and Health programs) for your employees.

Estimated Timeline and Cost

Timeframe: 2–6 weeks depending on documentation and business sector.
Cost: Varies based on service provider and complexity, but often starts from USD 3,000 for full incorporation services.

After Registration: Opening a Bank Account and Hiring

Once your company is registered, you can:

Open a corporate bank account using your Deed, NIB, and NPWP.
Hire local or foreign employees, ensuring you follow the foreign manpower regulations for work permits (KITAS).

Important Considerations for Foreigners

Local Partner: Not mandatory for PT PMA, but collaboration with local consultants or partners helps navigate bureaucracy.
Sector Restrictions: Some industries still limit foreign ownership, always check the Positive Investment List (Daftar Prioritas Investasi).
Reporting Obligations: Annual financial reports and investment activity reports (LKPM) are required.

Registering a company in Indonesia is entirely possible for foreign investors with the right knowledge and preparation.

While bureaucracy can be challenging, the process has improved significantly with digital systems like OSS.

For smoother registration, consider working with a licensed consultant or local legal firm to ensure compliance with current laws and sector-specific rules.

By following the correct steps, your company can legally operate and thrive in one of Asia’s most dynamic markets.