Company Registration in Indonesia for Foreign Investors
From entity selection to your NIB and bank account — Business Hub Asia manages your entire Indonesia incorporation, end to end. Operational in as little as 4 to 5 weeks.
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Entity Structures
Company Types We Register in Indonesia
Choosing the right legal structure is the first critical decision when entering the Indonesian market. Here are the four entities Business Hub Asia helps establish, with the PT PMA being the most common choice for international investors.
Most Popular for Foreign InvestorsStart PT PMA Setup
PT PMA (Perusahaan Terbatas Penanaman Modal Asing)
A PT PMA is the primary vehicle for foreign direct investment in Indonesia. It grants foreign nationals and corporations the legal right to operate a commercial business, hire staff, generate revenue, and sign contracts under Indonesian law. Ownership by foreign shareholders is permitted in most sectors, subject to the Positive Investment List.
- Ownership: Up to 100% foreign-owned (sector-dependent via Positive Investment List)
- Minimum shareholders: 2 (individuals or legal entities)
- Can invoice & hire: Yes, full commercial operations allowed
- Best for: Trading, manufacturing, technology, F&B, consulting, services
- Estimated timeline: 4 to 5 weeks
Domestic Investment Company
PT PMDN
A PT PMDN is a domestic investment company structured for Indonesian-owned businesses. It is the appropriate entity for local entrepreneurs, Indonesian joint venture partners, or for business sectors legally restricted to domestic ownership. Business Hub Asia provides full registration support for PMDN incorporation across all sectors.
- Ownership: Indonesian nationals or legal entities only
- Best for: Local entrepreneurs, Indonesian JV partners, restricted sectors
- Full commercial operations: Yes
Market Entry
代表处（KPPA）
A Representative Office (Kantor Perwakilan Perusahaan Asing) lets a foreign company establish a legal presence in Indonesia for market research, liaison, and coordination activities. It cannot invoice clients, generate revenue, or conduct commercial transactions. Ideal for companies exploring the market before committing to a full entity.
- Commercial activity: Not permitted
- Best for: Market research, partner liaison, pre-investment exploration
- Lower setup barrier: No minimum capital requirement
Non-Profit Foundation
Yayasan（基金会）
A Yayasan is a non-profit foundation structure under Indonesian law. It is suited for specific purposes such as education, social enterprise, humanitarian programmes, or philanthropy. Business Hub Asia can assist with Yayasan registration for organisations with qualifying objectives.
- Structure: Non-profit, foundation-based
- Best for: Education, social enterprise, charity, humanitarian activities
Not sure which structure fits your business?
Our consultants will assess your sector, ownership plans, and goals to recommend the right entity.
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What We Handle
Our Indonesia Incorporation Services
Business Hub Asia provides fully managed Indonesia incorporation services — from your initial consultation through to operational readiness. You focus on your business. We handle the paperwork, filings, and coordination.
Phase 1
Pre-Setup
Phase 2
法律机构
Phase 3
Post-Registration
Need work permits, KITAS, or ongoing accounting support after incorporation? We offer full post-registration services.
Before You Begin
Minimum Requirements by Entity Type
Each company structure carries different legal requirements. Select an entity type below to view what is needed before the company setup in Indonesia can begin.
- PT PMA
- PT PMDN
- Rep Office (KPPA)
- Yayasan
PT PMA
股东
- Minimum 2 shareholders required
- Can be individuals or legal entities
- Foreign nationals and corporations permitted
- Foreign ownership up to 100% in open sectors
Directors & Commissioners
- Minimum 1 Director (can be a foreigner)
- Minimum 1 Commissioner
- At least 1 Commissioner must be an Indonesian national or resident
- Directors require KITAS/KITAP if residing in Indonesia
Capital Requirements
- Minimum paid-up capital: IDR 2.5 billion
- Capital is stated in the deed — not required to be deposited upfront in all cases
- Capital must reflect genuine business investment intent
注册地址
- A valid Indonesian business address is required
- Must be in a commercial or mixed-use zone
- Virtual office addresses are accepted for most business types
- BHA provides compliant addresses in Jakarta, Bali, and Semarang
- Valid passport copies & proof of registered address: Required for all shareholders, directors, and commissioners.
- Power of Attorney: If signing is done remotely.
- Shareholder structure chart: To map out ownership.
- 对于公司股东而言： Company deed and relevant business license.
Estimated Timeline: Up to 10 working days from the time all requirements are complete.
PT PMDN
股东
- Minimum 2 shareholders required
- Must be Indonesian nationals or Indonesian legal entities
- Foreign shareholders not permitted under PMDN structure
Directors & Commissioners
- Minimum 1 Director
- Minimum 1 Commissioner
- Directors and commissioners are typically Indonesian nationals
Capital Requirements
- No universal minimum capital amount under PMDN
- Sector-specific capital requirements may apply
- Micro and small businesses qualify for simplified registration
注册地址
- Valid Indonesian business address is required
- Must comply with local zoning regulations
- Virtual office addresses are generally accepted
Documents typically required: Indonesian KTP (National ID) copies for all shareholders and directors, Power of Attorney if applicable, proof of registered address, and NPWP (Tax ID) for all Indonesian shareholders.
Estimated Timeline: Up to 7 working days from the time all requirements are complete.
Rep Office (KPPA)
Parent Company
- Must be a legally established foreign company
- Company deed, articles of association, and director resolution required
- Parent company appoints an Indonesia-based Chief Representative
Chief Representative
- At least 1 Chief Representative required
- Can be a foreigner or Indonesian national
- If a foreigner, a KITAS (work/stay permit) is required
Capital Requirements
- No minimum capital requirement for KPPA
- Operational funding comes from the parent company abroad
注册地址
- A valid Indonesian office address is required
- Must be a commercial zoning location
Documents typically required: Apostilled company documents from the parent company’s country, board resolution appointing the Chief Representative, Chief Representative’s passport, and proof of Indonesian registered address.
Estimated Timeline: Up to 3 working days from the time all requirements are complete.
Yayasan
Founders
- Minimum 1 founder (individual or legal entity)
- Indonesian nationals or foreign nationals permitted
- Founders have no ownership rights over foundation assets
Governing Board
- 3 governing bodies required: Executive Board, Supervisory Board, and Advisory Board
- Each body must have at least 1 member
- No member may hold positions in more than one board
Initial Assets
- Minimum initial assets required: IDR 10 million (domestic foundation)
- For foreign-funded foundations: minimum USD 100,000,000 or equivalent
- Assets are separated from founders' personal assets
注册地址
- A valid Indonesian address is required
- Must be consistent with the foundation's stated objectives
Documents typically required: Valid ID (passport or KTP) for all founders and board members, foundation purpose statement, initial asset evidence, and proof of registered address.
Estimated Timeline: Up to 7 working days from the time all requirements are complete.
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Questions About Company Registration in Indonesia
Common questions from foreign investors and business owners exploring Indonesia incorporation services.
外国人可以拥有印尼PT PMA公司的100%股份吗？
In many sectors, yes. Indonesia’s Positive Investment List (issued under Government Regulation No. 5 of 2021) defines which sectors are open to up to 100% foreign ownership and which carry partial restrictions. The majority of sectors in manufacturing, technology, trading, and services are fully open. Your BHA consultant will verify your specific KBLI code and ownership eligibility before registration begins.
What is the difference between a PT PMA and a PT PMDN?
A PT PMA (Foreign Capital Investment Company) allows foreign shareholders to hold equity and operate commercially in Indonesia. A PT PMDN (Domestic Capital Investment Company) is reserved for Indonesian nationals or entities. The key distinction is ownership eligibility: foreigners use PT PMA; Indonesian nationals use PT PMDN. Both structures allow full commercial operations.
How long does company registration in Indonesia take?
A PT PMA registration typically takes 4 to 5 weeks from the point documents are complete. A PT PMDN can be completed in 2 to 3 weeks. A Representative Office (KPPA) generally takes 3 to 4 weeks. Yayasan registration takes approximately 4 to 6 weeks, partly due to the State Gazette publication requirement. The most common source of delays is incomplete or incorrectly apostilled documentation.
Do I need to be physically present in Indonesia to register a company?
No. Most of the registration process can be completed remotely through a Power of Attorney (POA). Business Hub Asia handles all in-person filings and government coordination on your behalf. You will need to sign and notarise certain documents, but this can typically be done at an Indonesian embassy or consulate in your home country.
What is the minimum capital requirement for a PT PMA?
The minimum stated capital for a PT PMA is IDR 10 billion, with a minimum paid-up capital of IDR 2.5 billion. This capital is stated in the deed of establishment and is intended to reflect genuine investment intent. It is not required to be fully deposited at a bank at the time of notarial signing in all cases, though your consultant will advise based on your specific sector and structure.
What is a Representative Office (KPPA) and who is it for?
A Representative Office (KPPA) allows a foreign company to have a legal presence in Indonesia for liaison, coordination, and market research activities. It cannot generate revenue or invoice Indonesian clients. It is best suited for companies that wish to explore the market, manage local partners, or prepare for a full entity setup without immediately committing to a PT PMA.
What ongoing compliance is required after registration?
After company registration in Indonesia, a PT PMA is required to file quarterly LKPM (Investment Activity Reports) with BKPM, submit annual corporate tax returns, hold an Annual General Meeting (RUPS), and maintain proper accounting records. Business Hub Asia’s accounting and compliance team can handle all post-registration obligations on an ongoing basis.
Can my PT PMA hire foreign employees?
Yes. A PT PMA can sponsor foreign workers for positions that are not restricted to Indonesian nationals. Foreign employees require a KITAS (Temporary Stay Permit) and Expatriate Placement Plan (RPTKA) approval. Business Hub Asia’s immigration team can manage the full work permit and KITAS process for your expatriate staff alongside your incorporation.
What is a Yayasan and can a foreigner establish one in Indonesia?
A Yayasan is a legally recognised non-profit foundation in Indonesia, used for educational, social, humanitarian, or charitable purposes. Foreign nationals can be involved in establishing a Yayasan, though specific requirements apply, including higher minimum initial assets for foreign-funded foundations. It is not a commercial entity and cannot be used for profit-generating business activities.
Which sectors are restricted for foreign investment in Indonesia?
Indonesia’s Positive Investment List outlines sectors that are fully open, partially restricted (with ownership caps or local partnership requirements), or closed to foreign investment. Sectors with partial restrictions include certain areas of media, telecommunications, education, logistics, and retail trade. Fully closed sectors include specific areas of defence and national security. Your BHA consultant will check your specific KBLI code against the current list before you proceed.
Ready to Set Up Your Business in Indonesia?
Whether you are starting with a PT PMA, exploring a Representative Office, or need guidance on which structure fits your goals, our team is ready to help.
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