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Company Incorporation In Indonesia

There are three types of privately owned company in Indonesia, namely:
1. Firma or Fa (partnership, partners assume unlimited liabilities)
2. Commanditaire Vennootschap or CV (limited partnership or sole proprietorship, active directors assume unlimited liabilities)
3. PT (Perseroan Terbatas) or limited liability company

Perseroan Terbatas (PT) or limited liability company is by far the most common company establishment in Indonesia. There are two types of PT according to its shareholding structure:
1. Domestic Investment Company (PMDN)
2. Foreign Investment Company (PMA)

In 2018, in order to simplify business licensing procedures, the government of Indonesia introduced an Online Single Submission (“OSS”) web-based platform. The following documents, applicable to both PMDN and PMA are required for the submission:

1. Deed of Establishment
The following information will be needed for notary public to create the Deed:

• Name of the company
– It must be a unique name consisting of three words. For PMDN the name must be in Bahasa Indonesia

• Ownership Structure
– A minimum of two founders/shareholders is required. For PMDN all shareholders must be Indonesian citizens, for PMA at least one of the shareholders must be a foreigner

• The purpose and objective of the company
– Perpres 44 issued in 2016 regulates the list of business fields which are closed and opened to investment
– KBLI 2017 (Klasifikasi Baku Lapangan Usaha Indonesia) provides guidelines for industry classification

• Company’s capital
– For PMDN, the minimum authorized capital is Rp50million, of which 25% must be issued and paid
– For PMA the minimum issued capital is Rp10billion, of which 25% must be issued and paid

• Management
– A minimum of one director and one commissioner are required

2. Approval of Deed from Minister of Law and Human Rights
– The approval legalizes the status of the PT as a limited liability company

3. Business Domicile Letter
– Specifically for DKI Jakarta, Perda 1/2014 requires business domicile to be located in approved business zone
– Surat Edaran Kepala BPTSP DKI Jakarta No. 6/2016 allows virtual office address to be used as business domicile

4. NPWP (Nomor Pokok Wajib Pajak) or Tax Identification Number
– NPWP and SKT Pajak (Surat Keterangan Pajak) are required
– PKP (Pengusaha Kena Pajak) is optional

5. BPJS Participation Cerficate
– Issued by BPJS (Badan Penyelenggara Jaminan Sosial), this is a national social security program for employees
– In practice, this can be done later after NIB is obtained

Once you have the complete documents stated above, you can proceed with the OSS and obtain the following:
NIB (Business Identification Number), and
Izin Usaha (Business Permit)

The whole process takes between 14-28 days depending on the availability and readiness of the required documents and resources. For those who are not familiar with the procedures, it is advisable to consult serviced office and virtual office providers like Amethyst Executives Suites that will assist you in the process and gives you one stop solution service.

The above article is contributed by Amethyst Executive Suites, provider of Serviced Office, Coworking Space and Virtual Office with offices located at Sahid Sudirman Center, Jl. Sudirman (Central Jakarta CBD) and 18 Office Park, Jl. Simatupang (South Jakarta CBD). To find out more about our services and promotional offers, please visit www.amethystsuites.com or call +62 896 3694 1711 (Sahid Sudirman Center) or +62 896 3694 1722 (18 Office Park).