How Long Does it Take to Register a Business in Indonesia?
Corporate Secretary Service – A foreign investor in a PT must register as a PT PMA. You need to know which business fields are open or closed to PT PMA. This is regulated in Presidential Regulation Number 44 of 2016 concerning the Negative Investment List (DNI / Daftar Negatif Investasi). The DNI / Daftar Negatif Investasi (Negative Investment List) shows which business fields are open to investment, both domestic and foreign. It also shows how much foreign investment is allowed in each field. The DNI and the Economic Policy Package Volume X set out which business fields are open or closed to investment.
The DNI and Economic Policy Package X divide business fields into open and closed. Some examples of open fields are:
- 100% open to PMA: restaurants, bars, cafes, movie industry;
- Partially open to PMA: plant and food cultivation, oil and gas contracting, car maintenance, security consulting;
- Closed to PMA: retail trade in antiques, laundry, beauty salons, publishing.
To start a PT PMA, you need to do several things.
1. Principal Permit
To get a Principal Permit, apply through the BKPM One Stop Integrated Service (Pelayanan Terpadu Satu Pintu / PTSP). Registration with BKPM (Badan Koordinasi Penanaman Modal) has two stages:
- Submission of the registration permit: The registration permit checks if the business is allowed.
- The principal license is applied for by completing the application. Documents needed: The principal permit is like the trading business license or Surat Izin Usaha Perdagangan (SIUP) for PT PMDN.
2. Make the Deed of Establishment
After getting the permit, make a Deed of Establishment of PT PMA to a notary. Before going to the notary, prepare the company name, address, capital, shares, and management.
The notary will check with the AHU if the name can be used before making the deed. If the name is okay, the notary will make the deed. A copy of the deed will be ready in 14 days.
3. Get a Domicile Certificate
The Company Domicile Certificate or Surat Keterangan Domisili Perusahaan (SKDP) proves the company’s place of operation is legitimate. Get an SKDP from the village office where the company is located. The SKDP usually takes 3-8 days.
Read Also: How to Register a Business Name in Indonesia?
4. Get TIN or NPWP
Company NPWP takes about 7 days. The company also needs a Taxable Entrepreneur (Pengusaha Kena Pajak / PKP) letter. The NPWP is processed at the Tax Office in the company’s home city.
5. Bank account name
A bank account is created in the company’s name. The shareholders then deposit the share capital into the company’s treasury. The notary gets proof of the deposit and then submits the company’s authorization to the MOLHR RI.
6. Register by Notary
After the company is set up and its accounts are ready, the notary will apply for the company to be registered as a legal entity. You have 60 days after the Deed of Establishment is made to submit this. The Ministry of Law and Human Rights (Kemenkumham RI) will issue a decree on the legal entity ratification of PT PMA.
7. Announcement
The State Gazette will announce the legalization of PT PMA within 14 days of the Ministry of Law and Human Rights’ decree (Article 9, paragraph 3, Permenkumham 2010). The PT PMA will get the published supplement to the State Gazette from the notary who processed the legal entity validation application.
8. Apply TDP (Tanda Daftar Perusahaan)
After the company is legalized, it can apply for a Company Registration Certificate (TDP). It takes 14 working days. You can do this on the One Stop Integrated Service Agency or Badan Pelayanan Terpadu Satu Pintu (BPTSP) website.
9. 1 license 1 company
Different companies need different licenses. Common permits include location, foreign worker, representative office, and other permits.
10. Permanent Business License or Izin Usaha Tetap (IUT)
PT PMA must apply for a Permanent Business License or Izin Usaha Tetap (IUT) after one year. This license allows PT PMA to start activities or production. The company must submit an Investment Activity Report (Laporan Kegiatan Penanaman Modal / LKPM) to BKPM every three months.
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