Navigating the company registration process in Indonesia involves several steps and interactions with different government institutions. Here's a general overview of the process:
Preliminary Research: Conduct market research, assess the feasibility of your business idea, and determine the appropriate business entity for your company (e.g., PT, CV, Firma, Sole Proprietorship).
Company Name: Prepare several alternatives for your company name in case the availability is no longer there. Tips! Make your company name unique.
Company structure: Decide on your company structure starting from the shareholders, the shareholding, director(s) and commissioner (s). The main differences of the three are:
Shareholders are the owners of the company but they do not necessarily have to run the company. Can be individuals or legal entities or a combination of both. Minimum is two.
Director(s) is an executive position in the company. The director runs the company and decides how to manage and execute the business operations. Minimum is one.
Commissioner(s) is a non-executive position in the company. The main role of a commissioner is to supervise the director in running the business. Commissioner is the eyes and ears of the shareholders. Minimum is one.
Office location: browse some options where you plan to have your company registered. One feasible option mostly used by newly established companies is to lease an office at a coworking space. However, for some areas in big cities (especially Jakarta) it can be expensive. Other option is to rent a ruko, which is an abbreviation of “rumah” and “toko”. A ruko is a building usually with two or three floors.
Registration with Ministry of Law and Human Rights (MOLHR), Tax Office and OSS: Upon signing the deed of incorporation with a notary. These steps enable your company to be established legally and ready to start the business operation. You will obtain a letter of decree from the MOLHR as a prove that your company is registered legally in Indonesia, taxpayer identification (NPWP) as a prove that your company is registered with the tax office and NIB (along with other documentations) as a prove that your company is already registered in the OSS system and has the required permit to be operational.
Bank Account: There are many local banks available in Indonesia but not all of them are flexible and friendly with PMA. You will have to check with the bank managers of each bank on the requirements as each bank and branch operate on different standards and procedures. Some local banks you might want to consider are Mandiri, Permata, and BCA. We recommend opening the account with local banks but there are options for foreign banks such as CIMB, HSBC, OCBC, Citibank and so on.
Others:
BPJS and Manpower registration
BPJS is the state system for health insurance (BPJS Kesehatan) and social security (BPJS TK). Any established company in Indonesia is mandatory to register its employees to BPJS as regulated in Undang Undang No. 24 Tahun 2011
Manpower registration is an account set-up with the Ministry of Manpower. This report must be updated every year.
These two registrations must be fulfilled should you need to process a work KITAS for expats who plans to work in Indonesia.
Throughout the registration process, it's advisable to engage a professional service provider, such as a legal advisor or a company registration service, to ensure accurate preparation of documents, smooth communication with authorities, and compliance with local regulations.
Note: The specific requirements and procedures may vary depending on the type of business entity, location, and industry. It's recommended to consult with local experts or authorities for detailed guidance based on your specific circumstances.
Our consultants have the expertise to guide you on the process and advise you on the requirements. Contact us to learn more on the requirement for your business in Indonesia.
WhatsApp: +62 859-3323-1567
Email: contact@lglbee.com
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