Indonesia Company Registration
Expand Your Business into Indonesia
Tax Pal Solutions provides complete support for Indian investors looking to establish a company in Indonesia. From PT PMA incorporation to legal compliance, tax registration, and work permits, we simplify the process for seamless international expansion.
Key Advantages of Setting Up in Indonesia
- Thriving Economy – Indonesia is the largest economy in Southeast Asia, with GDP over USD 1.4 trillion and a young, digitally active population.
- Strategic Location – Positioned between the Indian and Pacific Oceans, offering efficient access to ASEAN and global markets.
- India-Indonesia Trade Benefits – Bilateral trade agreements simplify customs, tariffs, and market entry.
- High-Growth Sectors – Opportunities in IT, fintech, manufacturing, renewable energy, digital economy, and education.
Business Structures for Foreign Investors
| Structure |
Description |
Foreign Ownership |
Capital Requirement |
Activities Permitted |
| PT PMA (Foreign-Owned Company) |
Full operational entity for commercial activities, can hire staff |
Up to 100% |
IDR 10 billion (~INR 55–60 lakh) |
Trading, services, manufacturing, investment |
| Representative Office (KPPA) |
Liaison, market research, promotion, non-commercial |
100% |
No minimum |
Market research, promotion, advisory |
| Limited Liability Company (PT) |
Local entity, 100% Indonesian ownership |
Not allowed |
Varies |
Commercial activities |
| Sole Proprietorship (UD) |
Single-owner small business |
Not allowed |
Varies |
Small-scale commercial operations |
Eligibility for Indian Nationals
| Eligibility Criteria |
Requirement |
| Age & Legal Capacity |
At least 17 years old, legally competent |
| Directors & Commissioners |
Minimum 1 director and 1 commissioner, local or foreign |
| Shareholders |
Minimum 2 (individuals or corporate entities), proof of identity required |
| Capital Investment |
Minimum IDR 10 billion (paid-up and committed) |
| Business Address |
Physical or virtual office with Domicile Letter |
| Compliance |
Must follow OSS system, BKPM guidelines, and tax obligations |
Registration Process
- Company Name Approval – Submit 3 options in Bahasa Indonesia, approved by Ministry of Law & Human Rights.
- Deed of Establishment & Articles of Association – Drafted by a certified Indonesian notary, includes KBLI code, capital, and shareholder structure.
- Ministry Approval – Obtain Certificate of Incorporation and SK Kemenkumham.
- Registered Address – Secure physical or virtual office, acquire Domicile Letter.
- Tax Registration – Obtain NPWP (Taxpayer Identification Number).
- Business Identification Number (NIB) – Issued via OSS system, required for licenses and banking.
- Capital Investment Compliance – Submit paid-up capital and total investment statement.
Required Documents for Indian Investors
| Document Type |
Details |
| Passport & Photographs |
Notarized copies |
| Shareholder Proof |
Corporate or individual registration documents |
| Power of Attorney (if applicable) |
For representatives handling registration |
| Deed of Establishment & Articles |
Drafted in Bahasa Indonesia by a certified notary |
| Domicile Letter |
Proof of registered business address |
| KITAS (for foreign directors) |
Required for work permits |
Costs of Registration
| Cost Component |
Amount (IDR) |
Approx. in INR |
Details |
| Notary & Legal Documentation |
10–15 million |
55,000–80,000 |
Deed drafting, Articles of Association |
| Name Approval & Deed Registration |
1–2 million |
5,500–11,000 |
Ministry of Law fees |
| BKPM & OSS Registration |
Free |
Free |
Government platform access |
| NPWP Tax ID |
Free |
Free |
Taxpayer registration |
| Business Identification Number |
Free via OSS |
Free |
Multi-purpose registration number |
| Virtual Office (Optional) |
5–10 million/yr |
27,000–55,000/yr |
For companies without physical office |
| Ongoing Accounting/Legal |
5–15 million/yr |
27,000–82,000/yr |
Annual audits, tax filing, advisory services |
Post-Registration Compliance
- Corporate Bank Account – Required for capital, payroll, and transactions.
- Business Licenses (Izin Usaha) – Obtain sector-specific licenses through OSS.
- Tax & Investment Reporting – Submit annual/monthly tax returns and LKPM reports to BKPM.
- Work Permits (KITAS) – Indian expatriates require KITAS for legal operations, renewable every 6–12 months.
