What are the steps involved in registering a business in Indonesia?

Registering a business in Indonesia involves several steps that require careful attention to ensure compliance with local regulations. 

This guide outlines the essential steps involved in the business registration process, providing a clear and straightforward pathway for foreign investors.

Steps Involved in Registering a Business in Indonesia:

1. Determine Business Structure:
   • Choose the appropriate business entity (e.g., PT PMA, Representative Office, Branch Office).
   • Ensure the chosen structure complies with foreign investment regulations and ownership limitations.
2. Prepare the Required Documents:
   • Draft the company’s Articles of Association (AoA).
   • Obtain the necessary identification and legal documents for shareholders and directors.
3. Company Name Reservation:
   • Select a unique company name.
   • Reserve the name through the Ministry of Law and Human Rights.
4. Notarize Articles of Association:
   • Have the AoA notarized by an Indonesian notary.
   • Ensure the AoA meets all legal requirements and includes details such as company name, address, shareholders, and business activities.
5. Obtain Approval from the Ministry of Law and Human Rights:
   • Submit the notarized AoA for approval.
   • Obtain the Deed of Establishment.
6. Register for a Business Identification Number (NIB):
   • Register through the Online Single Submission (OSS) system to obtain the NIB.
   • The NIB serves as a business license, importer identification number, and customs access.
7. Obtain Necessary Licenses and Permits:
   • Depending on the business activity, acquire specific operational licenses and permits (e.g., Location Permit, Building Permit, Environmental Permit).
   • Ensure compliance with sector-specific regulations.
8. Register for Tax:
   • Obtain a Taxpayer Identification Number (NPWP) from the local tax office.
   • Register for VAT if applicable.
9. Social Security Registration:
   • Register employees with the Indonesian social security programs (BPJS Kesehatan and BPJS Ketenagakerjaan).
10. Open a Corporate Bank Account:
    • Choose a local bank and open a corporate bank account.
    • Deposit the initial paid-up capital as specified in the AoA.

Consult with Abhitech as Your EOR Provider

The business registration process in Indonesia can be intricate and time-consuming. Abhitech, as an experienced Employer of Record (EOR) service provider, can streamline this process by:

1. Document Preparation and Compliance: Assisting in the preparation and notarization of required documents, ensuring compliance with Indonesian laws.
2. Licensing and Permits: Managing the acquisition of all necessary licenses and permits through the OSS system.
3. Ongoing Support: Providing continuous support to ensure your business remains compliant with local regulations.

With over 30 years of experience, Abhitech ensures a seamless and efficient business registration process, allowing you to focus on your core business activities with confidence.

 

Sources

Indonesia Investment Coordinating Board (BKPM): Detailed information on the business registration process and requirements.

BKPM

Ministry of Law and Human Rights: Guidelines on company name reservation and AoA approval.

Ministry of Law and Human Rights

Online Single Submission (OSS) System: Central platform for business registration and licensing.

OSS System

 

For personalized guidance and assistance, contact Abhitech to ensure your business setup in Indonesia is handled efficiently and in full compliance with local laws.