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Bizinone - Incorporation in Indonesia
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Types of Business Entity for foreigners

Foreigners should select one of two company types depending on business characteristics and limitation from Indonesian regulations.

Limited Liability Company (PT PMA) Representative Office *2
Invested Capital Require at least USD1,000,000 of investment with USD300,000 paid in capital None
Ownership Foreign Shareholder in some industries, full ownership is not allowed for foreigners (NIA*1) Foreign Mother Company
Type of Business No restrictions on: issuing an invoice, importing products, and exporting products. Only marketing, research or advertising is allowed: Not allowed for invoicing, importing and exporting
Governance Minimum required company governers:
(2) Shareholders (1) Director
(1) Commissioner
No requirements for shareholder, director, commissioner.
License Depending on the business, a number of business licenses may be required from different government departments. Depending activities, a number of business licenses may be required.
Working Pass KITAS (Indonesia working permit)is required for foreigners. KITAS
Tax Rate 25% No tax

  1. NIA(Negative Investment List): Depending on business classification, foreign ownership is limited from 0% to 100%. Please refer to the knoweldgebase DB section.
  2. There are two types of representative offices: the General Representative Office (KPPA) and the Representative Office of Foreign Trade Company (K3PA). A K3PA can be opened if the parent company is the principal of products that is going to be promoted in Indonesia. Broker companies are not allowed to open a K3PA in Indonesia. The general representative office license is issued for 5 years but the trade representative office license is issued for three years, which can be extended perpetually. General representative offices can only be opened in the capitals of provinces in Indonesia. A K3PA can be opened in any location.

Process of company incorporation for PT PMA

Process Duration (Working days)
1. Approval of company name 1
2. Approval of Principle Licenses (Izin Prinsip Penanaman Modal) at the Indonesian Investment Coordinating Board (BKPM) 7
3. Preparation of Article of Association (AKTA Pendirian) by notary 2~3
4. Obtain Certificate of Domicile at the local government office 2~3
5. Obtain tax payer registration number (NPWP) 3
6. Open a bank account under company name
* In order to open account, a NPWP is required
7. Obtain Deed of Establishment (Legalization) at the Ministry of Law and Human Rights 2~3
8. Obtain Company Registration Certificate (Tanda Daftar Perusahan) 5~7

* Above working days can be extended due to delays in Government Office

Required Documents

  1. Company Details
    - Name comprising of 3 words
    - Address and verifying document of office
    (Property purchasing agreement or rental agreement)
    - Telephone number / fax number / email

  2. Business Scope
    - Business category and business plan
    - Import/export item and its estimated annual amount
    - Annual revenue
    - Manufacturing process chart (only for manufacturing industries)
    - Annual production amount (only for manufacturing industries)

  3. Shareholders
    - Minimum 2 shareholders
    - Share composition details
    - Documents verifying shareholder
    (1) In the case when the shareholder is a company
    1. Certificate of company registration(English)
    2. Notified Articles of Association (English)
    3. Details of president director (passport, address, email)
    (2) In the case when the shareholder is a person: Copy of passport, address, email

  4. Directors - BOD / Commissioner: Minimum 1 director and 1 commissioner
    - Each director/commissioner’s passport copy and address