{"id":35822,"date":"2020-06-18T17:33:00","date_gmt":"2020-06-18T09:33:00","guid":{"rendered":"https:\/\/zegal.com\/?p=35822"},"modified":"2023-01-18T14:24:57","modified_gmt":"2023-01-18T06:24:57","slug":"company-incorporation-step-by-step-indonesia","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-sg\/blog\/post\/company-incorporation-step-by-step-indonesia\/","title":{"rendered":"Company Incorporation Step by Step: Indonesia"},"content":{"rendered":"\n<p><span style=\"font-weight: 400;\">Here we&#8217;ll delve into the steps required for registering a company in Indonesia. We include all the procedures, and the estimated timelines for\u00a0 registering a company.\u00a0<\/span><\/p>\n<h4><b>What are the Minimum Setup Requirements to Register a Company in Indonesia?<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">There are different forms of business entities in Indonesia, listed below are the top 2 common entities in the Indonesian business scene.\u00a0<\/span><\/p>\n<p><strong>Local Company (PT PMDN)<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Local Shareholders &#8211; 2<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Local or Foreign Director, must have a Tax ID &#8211; 1<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Local Commissioner &#8211; 1\u00a0<\/span><\/li>\n<\/ul>\n<p><strong>Foreign Investment Company (PT PMA)<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Local or Foreign Shareholders &#8211; 2<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Local or Foreign Director &#8211; 1\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Local of Foreign Commissioner &#8211; 1<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Besides setting up a PT-company, the third common option is to set up a representative office.\u00a0<\/span><\/p>\n<h4><b>Registration Timeline\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">There are many stages and required documents that need to be obtained and approved in order for a business entity to be set up in Indonesia. The estimated process to complete registration is roughly <\/span><b>2-3 months<\/b><span style=\"font-weight: 400;\"> and costs around <strong>IDR 2,000,000.<\/strong>\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A new online system, Online Single Submission (OSS), has been set up and monitored by the Coordinating Ministry for Economic Affairs (Kemenko). The <\/span><a href=\"http:\/\/www.oss.go.id\"><span style=\"font-weight: 400;\">OSS<\/span><\/a><span style=\"font-weight: 400;\"> will facilitate the online procession of licenses that are required for business registration. <\/span><\/p>\n<h4><b>Step 1: Obtain a Company Name\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The proposed company name must be obtained and cleared with a notary (authorised personnel) through a computerised processing system. The notary must also pay a fee of <\/span><b>IDR 200,000<\/b><span style=\"font-weight: 400;\"> at an authorised bank in the process. Once the company name is approved, the notary will obtain clearance as well as a payment receipt with a <\/span><b>unique code<\/b><span style=\"font-weight: 400;\">. The process would approximately take <\/span><b>1 working day<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The unique code will be the key to obtaining and reserving the company name for a <\/span><b>maximum of 60 days.\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The company name must not:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Have been lawfully used by\/ similar to any other company\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Be identical or similar to any name of a state, government, or international agency without official approval<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Fail to conform to the purposes\/ objectives\/ activities of the company\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Consists of a set of numbers, letters or figures that do not form any words\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Ministry of Law has to approve the proposed company as well and it takes <\/span><b>1 working day<\/b><span style=\"font-weight: 400;\"> for the approval.<\/span><\/p>\n<h4><b>Step 2: Deed of Establishment\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The deed of establishment has to be approved by the Ministry of Law and Human Rights. The application for approval of establishment must be filled up and submitted electronically along with the certificate of the bank account and an official copy of the bank transfer advice.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If it is approved, the Ministry of Law will issue the legalisation on the establishment of the company as well as announce the establishment of the company in the Supplement State Gazette within the following 14 days.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The process of application takes an estimated <\/span><b>3 working days.<\/b><\/p>\n<h4><b>Step 3: Application for the Certificate of Company Domicile<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">All Indonesian limited liability companies are required to apply for a Certificate of Company Domicile. This certificate will be issued by either the local district office or the building management company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The application will take approximately <\/span><b>3 working days<\/b><span style=\"font-weight: 400;\"> to be processed and the certificate will be issued. This certificate is important for the application of other documents.\u00a0<\/span><\/p>\n<h4><b>Step 4: Obtain a Tax Registration Number (NPWP)<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">A company is required to be in possession of a valid tax ID for financial purposes and to partake in economic activities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In order to apply for the NPWP, the company must submit the deed of establishment, identity card of one active company director and a statement letter to confirm the place of business of the company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The application process takes roughly <\/span><b>2-3 working days<\/b><span style=\"font-weight: 400;\"> before the NPWP is issued.<\/span><\/p>\n<h4><b>Step 5: Obtain the<\/b> <b>Business Identification Number (NIB)<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">This unique company profile number serves as an identification for the company for official and formal application for other permits or licenses.\u00a0<\/span><\/p>\n<h4><b>Step 6: Apply for other relevant documents<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Depending on the nature of the company, there might be additional operational licenses or permits required in order to officially commence business operations. It is advisable to research the different types of requirements for your business activities and to be prepared with the previously mentioned identification numbers for a smoother application process.\u00a0<\/span><\/p>\n<p><b>Accounting<\/b><\/p>\n<p><span style=\"font-weight: 400;\">All companies are required to meet the accounting standards as stated by the DSAK-IAI (Dewan Standar Akuntansi Keuangan-Ikatan Akuntan Indonesia). Accounting records must be filed every fiscal year (1st January &#8211; 31st December).\u00a0<\/span><\/p>\n<h5><b>Corporate Tax Requirements<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">The amount payable in tax is dependent on the net income that a company obtains within a fiscal year. For big companies it is around 20% while small enterprises are given a 50% tax discount rate. Additionally, there is a flat 25% tax rate on corporate income.<\/span><\/p>\n<h5><b>Annual General Meeting<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">Companies are usually required to hold their Annual General Meeting at least 6 months after the end of their financial year.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><b><i>This article does not constitute legal advice.<\/i><\/b><\/p>\n<p style=\"text-align: center;\"><i><span style=\"font-weight: 400;\">The opinions expressed in the column above represent the author\u2019s own.<\/span><\/i><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/register.zegal.com\/\"><b>Start managing your legal needs with Zegal today<\/b><\/a><\/p>\n<p>MORE IN THIS SERIES: Company Incorporation: <a href=\"https:\/\/zegal.com\/blog\/post\/how-to-start-a-business-in-hong-kong\/\">Hong Kong<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">Singapore<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-japan\">Japan<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-new-zealand\/\">New Zealand<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-australia\/\">Australia<\/a>,<a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-taiwan\/\">Taiwan, <\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-macau\/\">Macau<\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">, <\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-china\/\">China<\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">, <\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-philippines\/\">Philippines<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/incorporation-british-virgin-islands\/\">BVI<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-vietnam\/\">Vietnam<\/a>,<a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-thailand\">Thailand<\/a>,<a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-indonesia\/\">\u00a0Indonesia<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-cayman-islands\/\">Cayman Islands<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-united-kingdom\">United Kingdom<\/a><\/p>\n<p><a href=\"https:\/\/zegal.com\/legalguide\/incorporate-your-business\/\"><span style=\"font-weight: 400;\">READ MORE: Documents required when incorporating your business<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":96,"featured_media":36126,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[14278,133],"tags":[7042,10607,25,8848,10307],"usecases":[],"businesstypes":[],"country":[],"class_list":["post-35822","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-management","category-startup","tag-accounting","tag-agm","tag-company-incorporation","tag-tax-rules","tag-z-syndicate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Company Incorporation Step by Step: Indonesia | Zegal Singapore<\/title>\n<meta name=\"description\" content=\"There are many steps to setting up your business in Indonesia. 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