A Comprehensive Guide to Company Incorporation in Indonesia


Indonesia, with its vibrant economy, abundant natural resources, and strategic location, has emerged as a prime destination for foreign investment and business expansion. If you’re considering establishing your company in this diverse and dynamic country, it’s essential to understand the process of company incorporation. In this comprehensive guide, we’ll walk you through the steps and requirements for successfully incorporating a companies incorporation in Indonesia.

1. Choose the Right Business Structure

The first step in company incorporation is selecting the appropriate business structure. Indonesia offers several options, including:

  • Limited Liability Company (PT): This is the most common structure and is suitable for most businesses. It offers limited liability for shareholders and can be wholly owned by foreigners.
  • Representative Office (RO): If you’re looking to explore the Indonesian market without engaging in commercial activities, an RO might be suitable.
  • Foreign-Owned Company (PT PMA): This structure is for foreign investors and allows for partial or full foreign ownership, depending on the industry.
  • Cooperative: A cooperative is ideal for businesses focused on community development and collaboration.

2. Fulfill Capital Requirements

For PT and PT PMA, there are minimum paid-up capital requirements that need to be met. The amount varies based on the business sector and is subject to change, so it’s crucial to check the latest regulations.

3. Choose a Business Name

Your chosen business name must be unique and in compliance with the regulations set by Indonesia’s Ministry of Law and Human Rights. A name search should be conducted to ensure your desired name is available.

4. Prepare the Necessary Documents

Gather the required documents, which usually include:

  • Articles of Association (AoA): This outlines the company’s structure, capital, objectives, and internal regulations.
  • Deed of Establishment: A formal legal document that establishes the company.
  • Shareholders’ Identification: Passport copies of shareholders and directors.
  • Proof of Capital: Bank statements or other financial documents.
  • Domicile Letter: Proof of the company’s address in Indonesia.
  • Tax Identification Number (NPWP): All shareholders and directors must have this.
  • Business License: Depending on the industry, specific licenses may be required.

5. Obtain Approvals and Permits

Depending on your business type and sector, you might need additional approvals and licenses from relevant government agencies, such as the Investment Coordinating Board (BKPM) and sector-specific ministries.

6. Submit the Application

Submit the required documents to the Ministry of Law and Human Rights. You can do this through an online system or by physically visiting the office.

7. Receive Notarial Deed and Tax Registration

Once your application is approved, you’ll receive the notarial deed and tax registration. This marks the official establishment of your company.

8. Open a Bank Account and Obtain Licenses

With your company officially established, open a business bank account in Indonesia. Additionally, obtain any necessary operational licenses and permits specific to your industry.


Incorporating a company in Indonesia might seem complex, but with careful planning and adherence to the regulatory framework, it can be a smooth process. The country’s promising business landscape, growing consumer market, and strategic location make it a compelling choice for companies looking to expand their operations. As regulations may change, always consult legal and business experts or government sources to ensure accurate and up-to-date information throughout the incorporation process. With the right guidance, your journey to establishing a presence in Indonesia can be a rewarding one.

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