Alternative Text

Vichi Lestari

Admin  |  27 February 2017

  Incorporating a Company in Indonesia is not as hard or complicated as it was heard. Sometimes it just take a little bit of time. In most cases there are many types of business entity but this time we will further discuss about Limited Liabitily Company. Worry not, once you obtain a Ministry of Law and Human Right’s Decree (Surat Keputusan Mentri Hukum dan Ham) regarding the legal status of your Company then your Company may act as an entity separate from the founders or shareholders. Now the first step in incorporating a company is that :

 1. Find a partner, do note that our Company Law stipulates that incorporating a company to be done by at least two shareholders (may be your spouse provided that the both of you having a prenuptial agreement)
2. Find a name, name must at least consist of 3 words (for Indonesian citizen, it has to be in Indonesian language), which haven’t been used by any other PT and register the name through notary;
3. Choose your office address (office address must be in office area or building so that it will not be difficult to apply for domicile);
4. Choose your business line- you may consult to your legal consultant for this;
5. For Foreigner, is to submit a BKPM application (please be mindful on what is a negative list and open business line with conditions) – we will discuss further detail on a PT PMA (Foreign Invested Company);
6. Choose number of shares, shares nominal and subscribed/paid-up capital (for Indonesian minimum to obtain SIUP is more than IDR 50,000,000,-);
7. When applying to the notary (or agent usually some people goes to agent instead of notary but of course agent will have to go through notary), normally you will received the following document package:
a. Name Approval;
b. SK BKPM (Foreign Investment Coordinator Board Approval);
c. Deed of Incorporation (where you arrange your shareholder and management rights and obligation here) – please be mindful on this some would use a template to just sign but do read carefully and arrange your game plan here;
d. SK MENKEH (Ministry of Law and Human Rights’ Decree);
e. Domicile Letter/Certificate of Domicile (SKDP), different from Letter of Domicile from Building- remember to have always apply for extension when expired;
f. NPWP (Tax ID) and you may apply for PKP if you want to issue a VAT INVOICE;
g. SIUP (Business License) – remember that a PT PMA or foreign invested company have SK BKPM or Permanent License in place of SIUP – however depending on their business line sometimes they need another extra license, or there are some other business line that is not governed by BKPM or Trade license, such as financial institution;
h. Company Registry;
i. State Gazzette;
8. The whole process may take 3-6 month sometimes due to your own cooperation in signing or choosing or submitting data, you may download our form here to see the list of required documents in regards to the incorporation of PT;

Feel free to download Documents for Incorporating Company in Indonesia.


Other Article

Financing in Startup

Admin  |  28 February 2017