The 5 Things to Know When Registering a Company in Indonesia

Starting a business in Indonesia can be a daunting task, especially if you are unfamiliar with the local regulations and procedures. However, with proper planning and guidance, incorporating a company in Indonesia can be a smooth and efficient process. In this article, we will outline the five things that you should know when registering a company in Indonesia, including the types of business structures available, the documents required, and the steps involved in the incorporation process. Additionally, we will recommend 3E Accounting Indonesia as a reputable Indonesia accounting firm that can assist you with company incorporation.

Choose the right business structure.

The first thing to consider when registering a company in Indonesia is the type of business structure that best suits your needs. The most common business structures in Indonesia are the limited liability company (PT) and the foreign investment company (PMA). PT is the most popular choice for small and medium enterprises, as it offers liability protection for the shareholders and is relatively easy to set up. PMA, on the other hand, is suitable for foreign investors who wish to fully own and control their business in Indonesia.

Prepare the necessary documents.

Before you can register with your company, you will need to prepare a set of documents that includes an article of association, a deed of establishment, and identification documents for the directors and shareholders. You may also need to provide proof of a business plan, a feasibility study, and other relevant documents, depending on the type of business you are establishing. It is important to ensure that all documents are properly notarized and translated into Indonesian.

Register with the Ministry of Law and Human Rights.

The next step in the incorporation process is to register your company with the Ministry of Law and Human Rights (MoLHR). This can be done through the online Single Submission System (OSS) or at the local One-Stop Service (OSS) office. You will need to submit the necessary documents and pay the registration fees at this stage.

Obtain a tax identification number (NPWP).

After your company has been registered with the MoLHR, you will need to obtain a tax identification number (NPWP) from the Directorate General of Taxation (DGT). The NPWP is a unique identification number that is used to track your company’s tax obligations and payments. You can apply for an NPWP online or at the local DGT office.

Register for other licenses and permits.

Depending on the nature of your business, you may also need to obtain other licenses and permits before you can start operating. This can include a business license, a trade license, and a labor permit, among others. You will need to apply for these licenses and permits at the relevant government agencies.

Incorporating a company in Indonesia can be a complex process, but with the right guidance and support, it can be a smooth and efficient experience. By choosing the right business structure, preparing the necessary documents, and following the steps outlined above, you can successfully register your company in Indonesia. To ensure a seamless incorporation process, we recommend working with a reputable Indonesia accounting firm such as 3E Accounting Indonesia. With their expertise and experience, they can guide you through the process and ensure that everything is taken care of properly.