Requirements and Procedures to Establish the Company in Indonesia

Many foreign investors are interested in having the company establishment in Indonesia. It can be seen from the increasing growth of the economy of Indonesian country within years. However, to set up the company establishment in Indonesia, you need to comply with the regulations. Here are the requirements and procedures to prepare if you decide to start a company in this country.

Types of the company establishment in Indonesia

There are 2 types of the company establishment in Indonesia.

1. A limited liability company or PT Penanaman Modal Asing (PT PMA)

Based on the article 37 of BPKM (Indonesian Investment Coordinating Board) regulation Number 13 the Year 2017 about the guidelines and procedures for licensing and capital investment facilities, you can set up a company establishment in Indonesia by taking the shares of the company or buying shares in the established PT PMA.

      2.The foreign representative office or Kantor Perwakilan Asing (KPPA)

Based on the article 37 of BPKM (Indonesian Investment Coordinating Board) regulation Number 13 the Year 2017 about the guidelines and procedures for licensing and capital investment facilities, you are also able to establish KPPA in Indonesia as long as you have the KPPA activities license.

The Requirements Needed for a Company Establishment in Indonesia

Here are the following requirements needed if you want to have a company establishment in Indonesia.

1. The legalized deed of establishment
2. The principle license and the business license from Indonesia Investment Coordinating Board or BKPM
3. The decree of the minister regarding the legalization of the legal entity status of the PT PMA from the ministry of law and human rights
4. The domicile letter from the local district authority
5. The company registration certificate (TDP) from the agency for integrated licensing services (BPPT)
6. The tax identification number (NPWP) and the taxable entrepreneur confirmation (PKP) from the tax office
7. The manpower report and the company welfare report from the sub-department of the Ministry of Manpower

The Procedures of the Company Establishment in Indonesia

To set up the company establishment in Indonesia, you can do such procedures below. Here are the procedures.

1. You need to obtain the principle license. This license is issued by BKPM.
2. Once you obtain the principle license, you can register a company through a public notary in Indonesia.
3. You need to obtain the deed of establishment. A public notary must legalize this deed of establishment.
4. After registering your company in the Ministry of Law, you can obtain the domicile letter that is issued by the regional administrative office.
5. Later, you need to register your company for taxation. Once you register your company, you will obtain the tax identification number or corporate tax identification.
6. After that, you can obtain the company registration certificate.
7. Later, you can be prepared for the operation of your company by making the purchase, opening the bank account, and applying for the work permit in Indonesia.
8. Once your company is ready to operate, you can register for the business permanent license that is issued by BKPM.

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