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Foreign Company Registration
IN INDONESIA

There are two types of legal entities we can help with : Foreign Direct Investment Company and Representatives Branch / Office

IZIN.co.id provides professional services to set up companies and to own business permits in Indonesia. Since 2012, We help foreign entrepreneurs to understand Indonesia's business law and regulation to create the best decision that fits their business needs. Every permit creation processes will be transparantly notified through advance tracking system.

PMA

Company Registration Indonesia: Advisory on Legal Entities

When a foreign investor or business wants to register a company in Indonesia, there are 2 types of legal entities we can help with: Foreign Direct Investment Company and Representative/Branch Office.


Foreign Direct Investment Company (PT PMA)

Foreign Direct Investment Company (also known as Foreign Owned Company) or PT PMA is limited liability companies. They may either be completely foreign-owned or established through a joint venture with Indonesian partners in accordance with the Negative Investment List. At least one shareholder of a PMA must be a foreigner. PT PMA is the best way to get your business started in Indonesia as this type of entity allows foreigners to earn revenue in Indonesia.


Representative/Branch Office (KPPA)

A Representative Office is also commonly referred to as a branch office, foreign companies or investors can fully own a Representative Office. This setup works best for non-sales-related business activities (e.g. setting up call centers, design houses, market research). It is also an interim solution for preparing the establishment of PT PMA. KPPA is not allowed to earn revenue in Indonesia but is able to hire employees and issue work permits.


Difference Between The Two

Foreign Direct Investment Company
(PT PMA)
Representative/Branch Office
(KPPA)
Activities

Any business activities which are not banned by Negative Investment List. Required to invest with minimum IDR 10 billion after obtaining the Capital Investment Registration or Business License, in the first 5 years. This amount is applied to one business sector and will be multiplied in accordance with how many business sectors needed.

Limited to the preparation of PT PMA establishment, market research, promotion, etc. Not allowed to sign any contract, issue invoice, receive payment, or even apply for any other license, such as an import license. It does require to have the exact same name as the parent company.

Investment

Above 10 Billion Rupiah (USD 800.000)

Stakeholder

Minimum 2 shareholders, 1 Director, and 1 Commissioner. All the stakeholders can be a foreigner representative as the director and/or the commissioner.

"1 Chief of Representative Office Can be local or foreigner, except for Construction Representative Office which shall have local chief "

Authorized Capital

Above IDR 10 billion (USD 800 000) as the paid-up capital injected into the company’s bank account once the company is well established.

Additional Requirement

"For a business line that shall apply for Investment Capital Registration, it is mandatory to fulfill investment plan before getting Business License and running a business. For the business line that directly apply for one-year Business License, it is allowed to start running the business or apply any further license required while realizing the investment plan. "

Tax Obligations
  1. PPh 21 (Employee income tax) Progressive Rate

  2. PPh 25/29 (Corporate income tax) Progressive Rate

  3. PPh 23 (Withholding tax for service provider) 2%

  4. PPh 26 (Withholding tax for abroad services) 20%

  5. PPn (Value added tax) 10%, if tax subject is a registered VAT Payer

  6. PPh article 4, clause 2 (Witholding tax for construction) 10%

  1. PPh 21 (Employee income tax) Progressive Rate

  2. PPh 23 (Withholding tax for service provider) 2%

  3. PPh 26 (Withholding tax for abroad services) 20%
    PPh article 4, clause 2 (Witholding tax for Tax Obligations construction) 10%

Mandatory Tax Report
  • PPh 21, PPh 23, PPh 26, PPh article 4 clause 2 (Monthly Report)

  • PPh 25/29 (Corporate income tax) [Annually]

  • PPh 21, PPh 23, PPh 26, PPh article 4 clause 2 (Monthly Report)

Required Documents
  • Copy of Passport with minimum 18 months of validity.

  • Company Legal document if the shareholder is a legal entity. (Plus Director’s Passport with minimum 18 months of validity).

  • Lease Agreement or Deed of sales and purchase. (only if there are plan to buy an office space).

  • Company Address

  • LoA (Letter of Appointment from Director of the Mother Company) legalized by corresponding Embassy

  • Letter of Intent (Legalized by corresponding Embassy)<< /li>

  • Letter of Statement (Legalized by corresponding Embassy)

  • Letter of Reference (Issued by Embassy)

  • Copy of valid Passport with minimum 18 months of validity

  • Company Legal document if the shareholder is a legal entity. (Plus Director’s Passport with minimum 18 months of validity)

  • Lease Agreement or Deed of sales and purchase. (only if there are plan to buy an office space)

  • Representative Office Address

Legal Documents Provided by IZIN.CO.ID
  • Notarial Deed of Establishment

  • Approval from Ministry of Law and Human Rights

  • Company Tax Identification Number (NPWP)

  • Business Identification Number (NIB)

  • Company Tax Identification Number (NPWP)

  • Business Identification Number or NIB (Special for Trading Representative Office)

  • Representative Office Registration Certificate (Permit)

Price List

Company Incorporation Service

IDR 15,000,000,-

(with condition already have an existing business address)

Inclusive of :

  • Checking & Registering Company Name
  • Deed of Establishment
  • Approval from Ministry of Law and Human Rights
  • Company Tax Identification Number (NPWP)
  • Business License (IU) / Business Registration Number (NIB)
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COMPANY INCORPORATION + BUSINESS ADDRESS

IDR 22,500,000,-

(virtual office)

Inclusive of :

  • Checking & Registering Company Name
  • Deed of Establishment
  • Approval from Ministry of Law and Human Rights
  • Company Tax Identification Number (NPWP)
  • Business License (IU) / Business Registration Number (NIB)
  • The State Gazette (BNRI)
  • Prestigious Business Address
  • Receive Mails & Parcels
  • SMS or Email Notification
  • Reception Service
  • Free Building Domicile
  • Perjakbi (Shared Office Entrepreneur Association of Shared Office) Certificate
  • Dedicated Local Telephone Number
  • Professional Call Answering
  • Free Call Transfer Worldwide
  • 8 Hours Meeting Room / month
  • 8 Hours Workstation / month
  • 3 Hours Executive Office Suite / month
  • Access to meeting room usage at any of vOffice locations
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COMPANY INCORPORATION + SERVICED OFFICE

IDR 25,000,000,-

(serviced office)

Inclusive of :

  • Checking & Registering Company Name
  • Deed of Establishment
  • Approval from Ministry of Law and Human Rights
  • Company Tax Indentification Number (NPWP)
  • Business License (IU) / Business Registration Number (NIB)
  • The State Gazette (BNRI)
  • Prestigious Business Address
  • Receive Mails & Parcels
  • SMS or Email Notification
  • Reception Service
  • Free Building Domicile
  • Perjakbi (Shared Office Entrepreneur Association of Shared Office) Certificate
  • Dedicated Local Telephone Number
  • Professional Call Answering
  • Free Call Transfer Worldwide
  • Fully Furnished Office Room
  • Electricity & Fiber Optics WIFI
  • Daily Cleaning Service & General Office Maintenancee
  • Free Flow Refreshment
  • 15 Hours Meeting Room / month
  • Access to meeting room usage at any of vOffice locations
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Additional Services

Representative Office

Representative Office is a local branch of a foreign parent company that is established to explore the market, promote their products, find business partners, and get to know Indonesia's customers and culture.

IDR 15.000.000

Temporary Stay Permit Card (KITAS)

Also known as a working visa. A legal document required by foreigner to work temporarily in Indonesia

Start from

IDR 25.000.000

Permanent Stay Permit Card (KITAP)

A permanent stay visa in Indonesia (KITAP) is a five-year-long permit that enables foreigners to stay in the country long-term without extending their visa on a monthly, quarterly, or yearly basis.

Start from

IDR 35.000.000

Business Visa

Both single-entry and multiple-entry business visas enable foreigners to come to Indonesia for business reasons such as conferences, training, or workshops. A business visa holder is allowed to stay in Indonesia for up to 60 days.

Start from

IDR 5.500.000

LKPM Reporting

Laporan Kegiatan Penanaman Modal (LKPM) stands for the Invesment Activity Report in Indonesia. BKPM (Investment Coordinating Board) requires submission of a quarterly invesment activity report for each line of business from foreign-owned companies in Indonesia.

Start from

IDR 5.000.000

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