Establishment Process
After you have decided on which company type best suits your business plans in Indonesia, AdvintA can complete your company registration as detailed in the schedule below.
This table provides a quick overview of the company establishment registration process for each legal entity:
Company establishment process by legal entity type*
| Entity | Description | Authority | Notes |
| PT & PMA | Legal entity & company name registration | Ministry of law & human rights | Name consisting of 3 approved Indonesian words |
| PT & PMA | Deed of incorporation & article of association (Akta) | Local notary office | In the presence of the notary |
| PT & PMA | Company establishment ratification (SK) | Ministry of law & human rights | Approval of the Ministry |
| KPPA | Representative office license (KPPA Izin) | Indonesian investment coordination board | Rental space in approved location & building |
| PT, PMA & KPPA | Company domicile certificate (SKDU) | Local government agency | Applicable government district |
| PT, PMA & KPPA | Tax identification number registration (NPWP) | Directorate-general of taxation | Re tax reporting & tax return |
| PT & PMA | Business identification number registration (NIB) | Capital investment coordination board | Includes company registration & principal business licensing (IP) |
| KPPA | Company certificate registration (TDP) | Ministry of trade | Business activities restricted |
| PT & PMA | Business licensing registration (Izin Usaha) | Applicable authorities | If a specific business sector license is required |
| PT & PMA | Opening corporate bank account | Local bank branch | Use of a personal bank account prohibited |
| PT, PMA & KPPA | Visa procurement | Directorate-general of immigration | Required to manage your business on location |
*This information is not legally binding and may be subject to change
Summary
The duration of the establishment process varies from approximately 1 to 3 months:
- PT: 1 – 2 months
- PT PMA: 2 – 3 months
- KPPA: 1 – 1.5 months
When you want to employ business activities which are on the Indonesian negative investment list Daftar Negatif Investasi (DNI), then you should consider setting up a local PT.
When you want to retain full directorship and ownership, then you should set up a foreign PT. PMA.
When you already have a company outside Indonesia, but first want to explore the Indonesian market opportunities, then you can set up a KPPA.
Whatever your choice, our professional network and direct access to Indonesian (government) institutions and their relevant representatives gives you a key advantage in dealing with the local bureaucracy. The partners’ channels into government institutions enable us to cut through red-tape, liaison with the appropriate government officials and efficiently utilize the mazes in the system, while meeting all legal necessities.