Company formation and registration in Indonesia

Legal Framework:

• Company formation is primarily governed by Law No. 40 of 2007 concerning Limited Liability Companies (Perseroan Terbatas or PT).  
• Foreign investment is regulated by Law No. 25 of 2007 concerning Investment and related regulations.

Company Types:

• The most common company type for foreign investors is a Foreign Investment Limited Liability Company (PT PMA).
• Representative offices (Kantor Perwakilan) can also be established for specific purposes.

Investment Coordinating Board (BKPM):

• The Investment Coordinating Board (Badan Koordinasi Penanaman Modal or BKPM) plays a crucial role in foreign investment.  
• BKPM handles licensing and approvals related to foreign investment.  

Registration Process:

• The registration process involves:
• Obtaining an Investment Registration Number (NIB) through the Online Single Submission (OSS) system.
• Drafting and notarizing the Articles of Association (Anggaran Dasar).  
• Obtaining approval of the Articles of Association from the Ministry of Law and Human Rights.  
• Obtaining a Tax Identification Number (NPWP).  
• Obtaining necessary business licenses and permits.  

Online Single Submission (OSS):

• The OSS system is an electronic platform for business licensing.  
• It aims to streamline the licensing process.  

Required Documents:

• Required documents typically include:
• Articles of Association.
• Shareholder information.
• Director and commissioner information.
• Proof of registered office address.
• Investment plan.

Minimum Capital Requirements:

• Minimum capital requirements vary depending on the business sector.  
• Specific regulations apply to foreign investment.

Foreign Investment Limitations:

• Certain business sectors are subject to foreign investment limitations or restrictions, as outlined in the Negative Investment List (Daftar Negatif Investasi).  
• This negative investment list is now replaced by the priority investment list.

Tax Registration:

• Companies must obtain a Tax Identification Number (NPWP) from the Directorate General of Taxes.  

Business Licenses and Permits:

• Specific business licenses and permits are required depending on the company's activities.  
• These permits are issued by relevant Indonesian authorities.  

Language:

• Official documents must be in Indonesian.