Company Registration Advisory in Indonesia
Engaging in a company registration in Indonesia is the first step to expanding your business operations legally into the country. There are many options business owners can opt for their company registration in Indonesia, but the most common types are a Foreign-Owned Company (PT PMA) or Representative Office. Each has its benefits, and one may be better suited for you based on your business expansion objectives. Let’s choose Peak Solutions as your Company Registration Advisory in Indonesia.
Type of Legal Entities in Indonesia
Below are the most common types of legal entities available in Indonesia
PT Registration - Who is it for and what are the benefits
PT Registration, short for Perseroan Terbatas company registration, is specifically for businesses in Indonesia that wish to establish a limited liability company.
PT Registration is suitable for Indonesian entrepreneurs who want to establish a formal legal entity to conduct their business activities. It provides a structure that separates personal assets from business liabilities, offering limited liability protection.
A PT (Perseroan Terbatas) is a local company, designed for Indonesian citizens and therefore we would only recommend setting up this type of business if you are either Indonesian or have a trustworthy Indonesian partner. If you are a foreigner we would recommend setting up a PMA. To find out more about PMA Establishment, you may check our PT PMA Establishment Page.
Additionally, there are some business entities that are only available to Indonesian Companies, therefore, even if you are a foreign company or individual, you may still need to set up a PT.
At Peak Solutions, we specialize in assisting businesses with PT company registration and provide comprehensive support throughout the process, helping you establish a strong legal foundation for your business in Indonesia.
Step to Register A PT Company in Indonesia
PT PMA Registration - Who is it for and what are the benefits
PT PMA registration refers to the process of establishing a foreign-owned limited liability company (PT PMA) in Indonesia. PT PMA company in Indonesia stands for Perseroan Terbatas Penanaman Modal Asing ( PMDA ), which translates to “Limited Liability Company with Foreign Direct Investment.”
PT PMA registration is specifically designed for foreign investors who intend to establish a company or expand their business operations in Indonesia. It provides a legal framework for foreign investors to participate in various sectors of the Indonesian economy, subject to certain restrictions and regulations.
Foreign investors can engage in PT PMA registration to set up new companies or acquire existing local companies. The registration process allows them to operate in various sectors such as manufacturing, services, trading, construction, agriculture, and many others, depending on the prevailing investment regulations and restrictions.
It’s important to note that PT PMA registration is subject to specific eligibility criteria, including minimum capital requirements, sector-specific regulations, and compliance with foreign ownership restrictions. The process involves various steps, such as obtaining licenses, and permits, and fulfilling administrative requirements, all of which are overseen by the Investment Coordinating Board (BKPM) in Indonesia.
At Peak Solutions, we have experts to help you set up a PT PMA registration and navigate the process, ensuring compliance, and maximizing your investment opportunities in Indonesia.
Step to Register A PMA Company in Indonesia
CV (Commanditaire Vennootschap)
CV is a form of business entity formed by two or more people who then entrust their capital to two or more people. This was done to run the company as well as being trusted to lead the company. The goal is to achieve common goals with different levels of involvement of each member. Therefore, in the CV there are two different allies.
CV was formed for business entities can carry out their business activities officially and legally according to law, because CV are generally established with a deed and registered through a notary so that it has legality.
Requirements
- Photocopy of KTP of Active Persero and Passive Persero.
- Photocopy of NPWP of Active Persero and Passive Persero.
- Company Stamp.
Note
- CV management consists of at least 1 Active Persero and 1 Passive Persero.
- Husband and wife who establish a CV together and don’t have a pre-nuptial agreement must engage one person to be a third party.
- Company seal will follow after the Company Name is final (Checked and ordered).
Representative Office
Suitable business entity for foreign companies looking to create an office in Indonesia with the purpose of market research. Please note, no profit can be generated.
- For Foreign Companies to open their representative office in Indonesia.
- For market research only.
- Cannot create any profit from or to Indonesia.
Establishment of a Firma (Partnership) in Indonesia
A Firma (or general partnership) is a type of business entity in Indonesia formed by two or more individuals who agree to run a business together under a shared name. This business structure is non-incorporated, meaning it is not a legal entity separate from its owners. As such, each partner shares full responsibility for the business’s operations, obligations, and liabilities
Key Characteristics of a Firma
- Formed by two or more Indonesian citizen.
- Unlimited liability: all partners are personally responsible for business debts and obligations.
- No minimum capital requirement.
- Flexible internal arrangement based on partnership agreement.
- Suitable for small-scale businesses or professional services (e.g., law firms, consultancies).
Understanding What a Foundation Is (Yayasan)
A foundation in Indonesia, known as a “Yayasan,” is a legal entity formed for social, religious, or humanitarian purposes. Unlike companies, foundations are non-profit organizations. Common objectives for establishing a foundation include charitable activities, education, religious promotion, and health services.
One significant distinction between a foundation and other entities is that a foundation cannot distribute profits to its founders or board members. Instead, it must reinvest any income toward its goals, ensuring its long-term sustainability
Key Characteristics of a Firma
- Formed by two or more Indonesian citizen.
- Unlimited liability: all partners are personally responsible for business debts and obligations.
- No minimum capital requirement.
- Flexible internal arrangement based on partnership agreement.
- Suitable for small-scale businesses or professional services (e.g., law firms, consultancies).
Cooperative Establishment
For those of you who wish to establish a family-based economic organization rooted in the principles of the people’s economy, forming a cooperative (koperasi) can be an ideal choice. A cooperative is a legal entity designed to promote the welfare of its members through mutual assistance, democratic decision-making, and equitable distribution of benefits.
Cooperatives in Indonesia can take various forms—such as savings and loan cooperatives, consumer cooperatives, or producer cooperatives—depending on the goals and needs of their members. This business model emphasizes collective ownership, solidarity, and fairness, making it well-suited for communities, small businesses, and family-run enterprises.
At Peak Solutions, we provide end-to-end support in cooperative establishment, including legal structuring, drafting of cooperative bylaws, registration with the Ministry of Cooperatives, and tax compliance assistance. Let us help you build a strong and legally compliant cooperative that reflects your community values and economic vision.
Frequently Asked Questions
Can foreigners set up business in Indonesia?
In general, yes foreigners are permitted to set up businesses in Indonesia, however, certain businesses are restricted to foreign ownership and others where foreign ownership stakes are limited by law. Please get in touch with us for more information.
Why do I need legal experts to start my business in Indonesia?
As a business owner or investor, it is important to understand the Indonesian law and legal system when conducting business. It’s important to keep in mind that Indonesian regulations are constantly changing, so it’s also important to stay up-to-date with the latest legal developments. By engaging a reliable legal consultants in Indonesia, investors and business owners can provide advice that their business operations with the peace of mind.
Why Choose Peak Solutions as Company Registration Advisory in Indonesia?
Choosing Peak Solutions as your Company Registration Advisory in Indonesia ensures expert guidance through the complex business registration process. They offer in-depth knowledge of local regulations, personalized support tailored to your business needs, and efficient handling of all paperwork and requirements. With a focus on professionalism and compliance, Peak Solutions helps you establish your business smoothly and successfully.
