Looking to enter the Indonesian market? Enterworld is here for you. With our expert professionals, you can successfully launch your business in the thriving country of Indonesia. Start your business journey today with company registration in Indonesia- 99% success rate guaranteed at the best price.
Indonesia is a country located in Southeast Asia, popularly known for its large population and growing economy. The country has numerous sectors that are open to new investment with 100% foreign ownership. If you are planning to start a business in Indonesia, you will find opportunities in areas like manufacturing, digital services, tourism and e-commerce. Company registration in Indonesia is easy and effortless with Enterworld.
The government is initiating laws and policies to welcome foreign investment, making the environment more supportive and business-friendly. Company registration in Indonesia requires following specific legal steps, including documentation, license approvals and following compliance rules.
Indonesia is blessed with natural resources, making it a hotspot for investment and trade. The market of Indonesia is rich in diverse cultures, offering a unique market for entrepreneurs. Confused about exploring the Indonesian market? Enterworld will help you handle the entire business setup. With our 10+ years of experience, we will ensure your company is registered with ease.
Types of Structures for Company Registration in Indonesia
There are various types of structures for company registration in Indonesia. Choosing the right structure will impact your liability, ownership and tax for your company. This will also help you ensure compliance and will help shape your business operations in the country.
Limited Liability Company (LLC) or Perseroan Terbatas
Company registration in Indonesia as a limited liability company, locally known as Perseroan Terbatas, is the most popular structure for both residents and foreign entrepreneurs. This structure offers limited liability protection for the shareholders.
To establish a limited liability company in Indonesia, you will need a minimum of two shareholders and a minimum of one director. As a foreign entrepreneur in Indonesia, you can establish a limited liability company known as Perseroan Terbatas Penanaman Modal Asing or PT PMA. You can enjoy 100% foreign ownership and have the legal authority to operate in the country.
Limited Liability Partnership or Commanditaire Vennootschap
Start a Business in Indonesia as a limited liability partnership, commonly known as a Commanditaire Vennootschap structure, which is incorporated by one or more partners. This partnership has two types of partners, i.e., silent (limited) partners and active (managing) partners.
The active partners are entirely responsible for the business operations and debts, while the silent partner will only contribute to the capital and have limited liability protection. The advantage of a limited liability partnership is flexibility in ownership, cost-effective operations, simplified company registration and faster setup compared to a limited liability company.
Sole proprietorship (UD)
A sole proprietorship in Indonesia, locally known as Usaha Dagang (UD), is a structure designed for individual owners and sole shareholders in a company. A sole proprietorship has unlimited liability but enjoys complete control of the business operations and profits without any restrictions. This is a simple structure without any requirement for a minimum share capital.
To establish a sole proprietorship in Indonesia, you can use the owner’s name or even select and reserve a trade name for your business. The advantage of a sole proprietorship in Indonesia is a cost-effective business setup and a minimal administrative burden.
Representative office
Incorporation for foreign investors in Indonesia, as Kantor Perwakilan Perusahaan Asing or KPPA, is a structure designed for foreign entrepreneurs. This structure is preferred by foreign entrepreneurs who wish to enter the Indonesian market to conduct non-commercial business activities such as networking, supervision, research, investigating and marketing of the services and products of the existing foreign company.
The business activities of a representative office are entirely handled by the foreign parent company. There are other representative offices in Indonesia, such as KPPA MIGAS for oil and gas, BUJKA for construction services and KP3A for foreign trade.
Cooperative (Kopersai)
Company registration in Indonesia as a cooperative, commonly known as Kopersai, is a structure formed through mutual understanding for a common cause and mutual benefit. A cooperative is a structure of two types: a primary cooperative, established with a minimum of twenty individuals, and a secondary cooperative that is formed with a minimum of three primary cooperatives to complete the goals.
The advantage of a cooperative structure is improved access to the market, strengthening of the local economy, social assistance and empowerment to support entrepreneurship.
Subsidiary company
A subsidiary company is a structure that is established as an LLC in Indonesia. A subsidiary structure allows a foreign company to enter the Indonesian market in the industrial sector and for the country’s consumer base.
The key benefits of a subsidiary company in Indonesia are easy market access, investment incentives and offers broader foreign participation. It is a separate legal entity from its parent company. Additionally, it offers legal protection to manage the subsidiary company’s finances and operational risks. It also provides foreign companies with easy access to other ASEAN markets.
Enjoy 100% Foreign Ownership
What are the Requirements for Company Incorporation in Indonesia?
Legal requirements for businesses in Indonesia, such as selecting a company name, securing a registered office address and applying for a specific business license, are mandatory. The other key requirements for company incorporation in Indonesia include:
Online Company Registration in Indonesia
Company registration in Indonesia is a mandatory requirement to operate in the country legally. You can register your company through the Indonesian OSS system (Online Single Submission) for your Business Identification Number (NIB).
Company Name
Choosing and reserving a company name for your business is a requirement for company registration in Indonesia. The chosen company name must be available, unique, and not have any trademark violations.
Registered Business Address
A registered physical business address is a requirement for all businesses. The local district office will provide the domicile letter for you to show proof of address during the process of company registration in Indonesia.
Why is Company Registration in Indonesia a Top Choice?
Indonesia offers excellent opportunities for foreign entrepreneurs. The country also offers 100% foreign ownership and a strategic position in Southeast Asia, including a large and young population, making company registration in Indonesia a top choice for foreign entrepreneurs.
Tax-Friendly Business Setup in Indonesia
Indonesia offers a tax-friendly business setup through government support and incentives like tax holidays, setting up a company in the Special Economic Zones (SEZs) and tax allowances. Indonesia also has double tax agreements that benefit business trade.
Resilient Economic Growth
The country has a resilient economic growth, making it an excellent destination for foreign investment. The economy of Indonesia is supported by strong domestic consumption and the country’s strategic infrastructure projects, providing long-term success.
Strategic Location
Indonesia is located in a strategic location, which gives you easy access to the other ASEAN countries, connecting you to major markets like China, India, Australia and the Asia-Pacific region. This reduces the logistics cost during trade.
What are the Benefits of Company Incorporation in Indonesia?
Indonesia is a thriving country for business, particularly because of its large and diverse economy, strategic location and support from the government. The other key benefits of company incorporation in Indonesia include:
The government of Indonesia offers attractive incentives to support the entrepreneurs of the country. The incentives include tax holidays, reduced tariffs, a strong economy and access to a high-quality infrastructure.
Strategic Location
Indonesia is located strategically in Southeast Asia, connecting the country to major countries of the world for trade. It is located along global trade routes, supported by various trade agreements.
Thriving Industries
Indonesia is home to various thriving industries such as manufacturing, automotive, renewable energy, digital technology and agriculture. Many industries are growing as the government is backing them by implementing various initiatives.
Easy Access to the Regional Market
Indonesia offers its foreign entrepreneur’s easy access to the regional market through online company registration processes which can be done remotely. As a foreign investor, you can complete the process without having to travel to the country.
Tax Incentives
The country offers tax incentives like corporate income tax reduction, VAT and export duty exemptions, 100% foreign ownership, local tax incentives and global minimum tax. Indonesia also has Double Tax Agreements to help businesses avoid being taxed twice.
Large Domestic Consumer Base
Indonesia has a large domestic consumer base with a population of over 270 million. The country also has a diverse market that is suitable for most entrepreneurs, offering comprehensive market opportunities.
Business-Friendly Policies
The government of Indonesia offers business-friendly policies to promote foreign investment in the country. These policies provide a liberal business environment with improved transparency and investment incentives for businesses.
Minimal Regulation Requirement
Indonesia is known as a country that has minimal regulations that are transparent with fewer legal requirements. The country also has a simplified registration process with minimal documentation and reduced bureaucracy.
Documents Needed
Documents Required for Business Setup in Indonesia
Copy of Passport (Shareholders and Directors)
Identification documents (Shareholders and Directors)
Deed of Establishment
Investment plan (for foreign companies)
Registered address proof
Copy of rental agreement
The list of three proposed trade names
Articles of Association (AoA) and their amendments
Statement of Domicile
Company letterhead
Statement for lease (if applicable)
Details of the structure of the board of directors
Letter of Appointment (LoA) signed by the director
Statement for lease (if applicable)
Company Registration in Indonesia
Profitable Ideas for Company Incorporation in Indonesia
E-commerce industry
Digital marketing and app development
Tourism and Hospitality
Manufacturing
Waste management
Exports industry
Services sector
Fintech and digital payments
Infrastructure and construction
Frequently Asked Questions on Online Company Registration in Indonesia
Yes, you can start a business as a foreigner in Indonesia. The most common structure
for company registration in Indonesia as a foreigner is the PT PMA (Perseroan
Terbatas Penanaman Modal Asing), which is a foreign-owned LLC. To legally operate in
Indonesia, you will need to register your company with the Ministry of Law and Human
Rights (MOLHR) through the Online Single Submission (OSS) system.
To legally operate a business in Bahrain, you will first have to register your
company online through the official website of the Ministry of Industry, Commerce
and Tourism's (MOICT) Silijat portal. You can either do mainland company formation
in Bahrain or a freezone company formation, and you will be required to select and
reserve a company name under the guidelines of company naming approved by the MOICT.
Company Name: The company name to do business in Indonesia must have
at least three words and will have to be approved by the Ministry of Law and
Human Rights.
Company Structure: The most preferred structure for company
registration as a foreigner in Indonesia is Perseroan Terbatas Penanaman
Modal Asing (PT PMA), which allows 100% foreign ownership.
Shareholders and Directors: To establish a foreign-owned company, you
will need a minimum of two shareholders and one director who must be a
resident of Indonesia.
Minimum Share Capital: As a legal requirement, you will need a
minimum share capital of 10 billion Indonesian Rupiah (IDR) for company
incorporation.
Company Location: Having a registered company location for your
foreign-owned business is mandatory, and you must comply with local
regulations.
Notary Public: A company deed of establishment must be signed in
front of a public notary to prepare the company documents.
Licenses and Permits: Apply for industry-specific licenses and
permits required for foreign-owned companies in Indonesia through the Online
Single Submission (OSS) system.
The standard income tax rate in Indonesia is 22%. However, some companies, like
publicly listed companies that list company shares on the Indonesian stock
exchange, are eligible for a tax reduction of 3%, offering a tax rate of 19%. To
be eligible for the tax reduction, you will have to meet specific conditions,
such as having 40% of the capital traded publicly.
Additionally, small and medium-sized businesses (SMEs) with an annual
turnover of less than IDR 50 billion will be eligible for a 50% tax
reduction on their taxable income.
To register a company in Indonesia, you will first have to select a legal
structure and reserve a company name. You will also have to prepare for a deed
of establishment and gather other essential documents such as a domicile letter,
identity proof and physical address proof. Finally, once your documents are
ready, you will have to register your company with the Ministry of Law and Human
Rights (MOLHR) through the OSS system to obtain your Business Identification
Number (NIB).
Yes, as a foreign national, you can own a company in Indonesia; however, you
will have to appoint a local director who is required to be a permanent
resident of Indonesia. You will also have to appoint commissioners to manage
the company. To legally operate a foreign-owned company, you will have to
comply with the local laws. You will also need a minimum of two shareholders
and a minimum share capital of IDR 10 billion for company incorporation.
The NIB is known as Nomor Induk Berusaha, which is an Indonesian Business
Identification Number (BIN). NIB is a legal business number that is an
official identifying number for all businesses through the Online Single
Submission (OSS) system. The Nomor Induk Berusaha (NIB) represents as an
official business license for the companies established in Indonesia.
Indonesia is a good country to do business in, as the country offers
incentives to support entrepreneurship and foreign investment. The country
has a large and resilient economy with high domestic demand and abundant
natural resources. In addition to this, the country also has a growing
consumer market, making Indonesia an excellent destination to do business.
Abundant Natural Resources: Indonesia is rich in natural
resources, offering numerous opportunities in related industries
like agriculture, oil, and gas.
Strategic Location: Indonesia is located in a key position in
Southeast Asia, providing strong connectivity for global trade.
Large and Growing Market: Indonesia has a vast and expanding
market with a strong customer base across multiple industries.
Diverse Economic Sectors: Manufacturing and natural resources
are major contributors to Indonesia’s GDP, and the country provides
excellent opportunities across diverse sectors.
The minimum capital requirement in Indonesia is only for the foreign-owned companies; the local domestic companies do not require any share capital for company incorporation. The minimum capital required during company incorporation is IDR 2.5 billion, which has been implemented since 6th October, 2025.
Minimum Paid-up Capital: The minimum share capital is IDR 2.5 billion, which must be deposited at the time of foreign company registration in Indonesia.
Change in Regulation: The regulations have been updated through the Minister of Investment Regulation No. 5 of 2025 to support foreign investment.
The time required for company registration in Indonesia is around 1 to 3 months. The exact time will depend on the business activity, the structure you choose and if the documents submitted are completed. However, the process can be completed digitally through the One Single Submission (OSS) system, simplifying the process.
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