How Long Does it Take to Register a Company in Indonesia?
Corporate Secretary Service Indonesia – To promote business growth in Indonesia, the government actively creates a facilitative environment for foreign investors through initiatives that lower barriers. Currently, the company registration process is simple and partially digitized for the ease of Indonesian company establishment.
Other than the first two steps that cannot be processed online, the rest of the process can be done online through an online system known as Online Single Submission (OSS). Approval of the establishment documents takes about ten working days, after which you can draft your articles of association and apply for a business license. The overall establishment/registration period is between two and three months.
Options for Indonesian Companies Wholly Owned by Foreign Entities
A company is considered a foreign company if there are foreign investors or shareholders in the company. Such companies must obtain approval from the board to coordinate investment before conducting business activities in Indonesia. The amount of capital invested in a particular business will determine the size of the business enterprise and the eligibility to sponsor foreign employee work permits. Indonesia allows total foreign ownership in industries that are not included in the Investment Positive List.
If you are a foreign business owner who wants to register your company for total ownership, you have the following options:
You can register your business company as a PT (Perseroan Terbatas)
PT is a local term that refers to a limited liability company, and it is the most common foreign company option established in Indonesia. It exists in three categories:
- Small size
- Medium-sized
- Large-sized PT Company
Paid-up capital varies depending on the category and is set upon approval by the Investment Coordinating Board. Most foreign and local investors with permanent residency can use this kind of option. This type of Business Company is easy to establish and offers limited liability for most foreign entities and local entities as it supports working visas. A PT company requires:
- One local director
- Two local shareholders
- One foreign or local commissioner
Read Also: Is it Hard to do Business in Indonesia?
You can register your company as a PMA (Foreign Investment / Penanaman Modal Asing)
PMA companies can be wholly or partially foreign-owned. The company is established under the regulations stipulated in the Undang-Undang Penanaman Modal Asing or Foreign Investment Law and approved by the Indonesian Badan Koordinasi Permodalan Indonesia or Capital Coordinating Board. The PMA companies can be transformed into public companies in the future.
You can register your company as a KPPA (Kantor Perwakilan Perusahaan Asing)
KPPA (Kantor Perwakilan Perusahaan Asing) is a foreign representative office, and the registration process takes 3-4 working weeks. This kind of company registration suits investors who want to study the Indonesian market for business-related research and development objectives. They act as buying and selling agents of the parent company. However, it is limited to certain business areas such as services, banking, trading, mining, gas, and oil.
How is the Process of Registering a Company in Indonesia?
Business registration and establishment depend on the type of your company, and this also determines the duration of registration. Here is the procedure for company registration in Indonesia:
Choose Your Business Structure
Decide which business structure is suitable for you. After that, you should establish or use professional services such as company secretary, human resources, accounting, etc. Take care of your employee needs, ongoing filing, and bookkeeping.
Choose a unique company name
The company name contains at least three different words. You are required to provide three options for your company name in English, Indonesian or both. These three name options save you the trouble of having to go back and think of a name if the first option has already been used. Once you have decided, you need to register the company name at the Ministry of Law and Human Rights. Make sure your company name is approved by Notaris as a sign that your business is legally incorporated.
Having a registered office
Once you are confirmed with your business formation, immediately make sure you have a registered office and mailing address.
Register your company for a business license
The process of obtaining a business license varies for each type of business. You must apply for a business registration certificate and company registration documents from the Ministry of Commerce office.
Don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!
