Indonesia, the largest economy in Southeast Asia, is attracting more and more foreign investors with its growing market and favorable business climate. Registering a company in this country opens up wide opportunities but requires an understanding of local specifics and legislation.

Types of companies

In Indonesia, the most common form for foreign investors is PT PMA (Perseroan Terbatas Penanaman Modal Asing) - a company with foreign investment. There are also representative offices of foreign companies and local PTs (similar to LLCs).

Registration process

• Obtaining principal approval from the Ministry of Investment (BKPM).
• Preparation and notarization of founding documents.
• Registration with the Ministry of Justice and Human Rights.
• Obtaining a tax number (NPWP).
• Registration with the local labor office.

The minimum authorized capital for PT PMA varies depending on the economic sector, but usually amounts to about 10 billion Indonesian rupiah (approximately 700,000 US dollars).

The registration process usually takes 2 to 3 months.

Jurisdiction features

• The corporate tax in Indonesia is 22%. There is also VAT (usually 10%) and a number of other taxes and fees.
• All official documents must be in Indonesian.
• In some sectors, the presence of a local partner is required.

How to register a company?

Registering a company in Indonesia can be a complex process, but with the right approach, it opens access to one of the most dynamically developing markets in the world. To simplify the company registration process, we recommend contacting IT-OFFSHORE specialists who can register a company in Indonesia for you on a "turnkey" basis.