Company Registration and Incorporation

The decision to start business set up in a new market is critical. Activities in the new country that involve substantial investment may lead to high risk because of different economic, cultural, political, and technological conditions that create major challenges.

Professional assistance is important to ensure that your business is set up properly. Just as every other market does, Indonesia has its own characteristics. Proper understanding requires deep insight into its culture, customs, and business environment.

Thanks to our local team and extensive expertise, HC can advise you on the most suitable way to enter the market effectively.

We provide comprehensive consultancy services to guide our clients through the process of starting up a business in Indonesia.


Local Company (PT) Foreign Owned Company (PMA) Representative Office

Company Registration

Minimum No. of Directors 1 1 Parent Company
Minimum No. of Shareholders 2 2 Parent Company
Minimum No. of Commissioner 1 1 NA
Minimum Paid Up Share Capital From US$3,745 US$200,000 None
Estimated Timeline of Incorporation 2-5 months 2-5 months 2 months
Indonesia Resident Company Secretary No No No
Resident director / manager required? Yes Yes Yes
Resident shareholder / partners required? Yes Depends on NIL (Negative Investment List) No
Government foreign investor approval required? No No No
Shelf companies available? Yes Yes No

Accounting and tax Considerations

Statutory corporation tax payable? Yes Yes Yes
Must file annual Indonesia tax return? Yes Yes Yes
Must file annual financial statements? No No No
Must appoint an auditor? No No No
Access to double taxation treaties?


Business Consideration
Can invoice local customers in your company name? Yes Yes Yes
Can hire local staff in your company name?
Can rent local office space in your company name? No No No
Residence visa for business owner? Yes Yes Yes
Good entity for trademark registration? Yes Yes Yes

Other Considerations

Is it legal for tax exempt if properly structured? Yes Yes Yes
You need a local Indonesian citizen as a sponsor? Yes Depends on NIL (Negative Investment List) No
Must appoint an Indonesian resident as bank signatory? Yes No No
Security deposit to be kept with government? No No No
Client must travel to Indonesia? No No N0