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Foundation (NGO) Registration Indonesia

Overview

A foundation (Yayasan) or Non-Governmental Organization (NGO) in Indonesia is a non-profit legal entity that functions to carry out social, religious, educational, health, cultural, environmental, and community empowerment activities. Unlike a PT, the Foundation does not have a commercial purpose to share profits, but can carry out business activities as long as the results are used again for the Foundation.

Business Hub Asia provides Foundation registration services in Indonesia according to legal provisions fulfilled according to Law No. 16 of 2001 jo. Law No. 28 Year 2004. With our professional assistance, the process of establishing a Foundation will be fast, transparent, and follow regulations.

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Key Features

Legal Structure Consultation & Governance Advisory

Assistance in determining the objectives, fields, and organizational structure of the Foundation, including Consultation on internal regulations, governance, and legal compliance.

Notarial Deed & MoLHR Approval

Preparation of the deed of establishment and approval from the Ministry of Law and Human Rights.

Tax ID & OSS Registration (NIB)

Foundation NIB registration through OSS for legal entity identity. Including the creation of a Taxpayer Identification Number for the Foundation's fiscal compliance.

Minimum Requirements

Minimum Administrators

Minimum of 3 administrators: Trustees, Management, and Supervisors

Identity Documents

Copy of ID card of the founder and board

Foundation Name

Must be unique (not the same as any registered Foundation)

Office Address

Address of the Foundation's domicile office

Purpose & Activity Field

Social, educational, religious, or other specified purpose

Initial Capital

At least IDR 10 million for domestic activities (may vary for foreign foundations)

Process and Timeline

1

Initial Consultation & Structure Development

Determination of fields, objectives, names, and board composition. Estimated Time: 1 working day.

2

Notary Deed Preparation

Preparation of the deed of establishment and signing before a notary. Estimated Time: 2-3 working days.

3

Ministry of Law and Human Rights Endorsement

Submission of the deed to the Ministry of Law and Human Rights for legal entity endorsement. Estimated Time: 5-7 working days.

4

Foundation NPWP & OSS (NIB) Registration

Submission of NPWP at KPP according to domicile and submission to OSS. Estimated Time: 1-2 working days.

5

Finalization of Legal Documents

Submission of all official Foundation documents to the client. 1 working day.

*The total estimated time to establish a foundation in Indonesia is 2-3 weeks.

Important Consideration

  • The Foundation cannot be owned for commercial purposes or distribute profits to the management.
  • Business activities may be carried out if they support the objectives of the Foundation and all proceeds are used for Foundation activities.
  • The name of the Foundation must be unique and follow Kemenkumham regulations.
  • Changes in the composition of the board, address, or articles of association must be reported to the Ministry of Law and Human Rights.
  • Foreign foundations have additional requirements, such as recommendations from relevant technical ministries.

Frequently Asked Questions

Can the Foundation generate business profits?

The Foundation can do business, but all profits must be used to support the Foundation’s activities.

Can foreigners establish a Foundation?

Yes, with additional requirements, including recommendations from relevant ministries for the establishment of foundations.

Is the Foundation required to have NIB and must pay taxes?

Yes, NIB is needed as an official identity and the Foundation is required to report taxes, despite its non-profit status.

Is it possible to change the purpose of the Foundation in the future?

Yes, through amendments to the Articles of Association with the approval of the Ministry of Law and Human Rights.

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