Indonesia Company Registration and Incorporation Service

The primary types include State-Owned Companies (BUMN), Private-Owned Companies (such as CV and PT/Limited Liability Company), and Representative Offices (KPPA). For foreign investors, the most common entity is a PT PMA (Foreign Direct Investment Company).

A PT (Perseroan Terbatas) is a limited liability company that can be 100% locally owned. A PMA (Penanaman Modal Asing) is a PT specifically structured for foreign investment, requiring at least 1% foreign ownership and adhering to foreign investment regulations. A KPPA is a Representative Office that allows a foreign company to have a presence in Indonesia for marketing and research but cannot engage in direct commercial sales.

Company incorporation is the legal process of establishing a new corporate entity that is entirely separate from its owners. It involves registering your business with the Indonesian government, which grants the entity its own legal rights and liabilities.

Incorporating your business provides limited liability protection for owners, enhances corporate credibility, improves access to capital and financing, ensures the perpetual existence of the company, and may offer significant tax benefits and incentives.

For a local PT (PMDN), you need at least 2 shareholders, 1 director, and 1 commissioner, with varying capital requirements based on company size. For a PT PMA, you need 2 shareholders, a director, a commissioner, a minimum investment plan of IDR 10 billion per business activity, and a registered commercial address.

The process involves several key steps: registering the company name, executing the Deed of Establishment before a Notary, obtaining a Domicile Certificate, acquiring a Tax Registration Number (NPWP), and securing a Business Identification Number (NIB) through the OSS system.

The cost varies by entity type. For a foreign-owned PT PMA, the government mandates a minimum investment plan of IDR 10 billion, with a minimum paid-up capital of IDR 2.5 billion. Service fees for the actual registration and incorporation process will apply separately.

Yes, foreigners can own up to 100% of a PT PMA depending on the specific business sector and the Positive Investment List (DNI). Certain sectors may have restrictions requiring partial local ownership, but many are fully open to foreign investment.

The standard corporate income tax (CIT) rate in Indonesia is currently 22%. Depending on the company's gross revenue and whether it is publicly listed, it may qualify for further tax reductions.

You can verify a company's registration status through the Ministry of Law and Human Rights (MoLHR) online portal known as AHU Online (https://ahu.go.id/). This public platform allows you to search for registered limited liability companies and access their corporate profile.