Starting a business in Indonesia can be a lucrative opportunity, especially for those interested in establishing a local PT (Perseroan Terbatas).
A PT company or limited liability corporation, has several advantages, including limited liability protection for its stockholders and better access to local markets.
However, the registration process consists of several phases and conditions that must be accomplished in order to comply with Indonesian regulations. In this post, we’ll walk you through the stages required to register a local PT company in Indonesia.
Step-by-Step Guide to Registering a Local PT Company in Indonesia
Registering a local PT company in Indonesia requires following a clear process. Here’s a breakdown of each step:
Step 1: Prepare the Required Documents
Before starting the registration process, it’s crucial to gather the necessary documents. Some of the key documents include:
- A minimum of 2 shareholders, both can be individuals or companies.
- At least 1 director and 1 commissioner, director and commissioner can also be shareholders.
- A registered office address in Indonesia.
- A minimum authorized capital of IDR 50 million, higher for certain business sectors.
Step 2: Obtain a Deed of Establishment
The next step is drafting the Deed of Establishment. This legal document outlines the company’s structure, purpose, and shareholders.
The Deed of Establishment must be notarized by an Indonesian public notary and should include the company’s name, address, and business scope.
Step 3: Obtain Approval from the Ministry of Law and Human Rights
Once the Deed of Establishment is notarized, it needs to be submitted to the Ministry of Law and Human Rights. The ministry will review the documents and issue an approval letter. The approval signifies the legal formation of your company.
Step 4: Register with the Online Single Submission (OSS) System
After receiving the approval, you must register your PT through Indonesia’s Online Single Submission (OSS) system. The OSS system allows businesses to apply for multiple licenses in one platform.
During this step, you will receive your Business Identification Number (NIB), which acts as the official registration number for your company.
Step 5: Obtain Business Licenses and Permits
Depending on your industry, additional licenses or permits may be required. For example, businesses involved in food production may need a food handling permit, while construction companies may need a special building permit. You can apply for these licenses through the OSS system.
Step 6: Tax Registration
Every PT company in Indonesia must be registered with the tax authorities. Upon registration, your company will be issued a Taxpayer Identification Number (NPWP). It’s important to note that you are required to file tax returns even if your business has not generated revenue.
Step 7: Open a Corporate Bank Account
To conduct business transactions in Indonesia, you will need a local corporate bank account. Most major Indonesian banks offer business banking services for local PT companies.
Be prepared to provide your company’s NIB, NPWP, and a copy of the Deed of Establishment when opening the account.
Additional Considerations for Registering a Local PT Company in Indonesia
Business Activity Classification (KBLI)
When registering your company, it is crucial to select the correct KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) code. This code represents your business’s activities and is used to determine the permits and licenses you need.
Choosing the wrong KBLI code can lead to delays in the registration process and potential legal complications down the road.
Mandatory Labor Requirements
In Indonesia, companies are required to meet certain labor requirements, including providing employee benefits such as health insurance and a minimum wage. It’s essential to familiarize yourself with these obligations early on to avoid legal issues.
Updates to Company Registration Procedures
Indonesian business regulations can change frequently, so it’s important to stay informed about any updates to the registration process. For example, recent changes in 2024 have simplified certain steps, such as online submissions through the OSS system.
Post-Registration Obligations
Once your local PT company is successfully registered, you will need to comply with ongoing regulatory requirements. This includes:
- Filing annual tax returns and financial reports.
- Keeping your business licenses and permits up to date.
- Ensuring that your business activities align with the registered KBLI code.
- Complying with labor laws and maintaining a proper payroll system.
Registering a local PT company in Indonesia can be a complex process, with various paperwork requirements and legal steps to follow. However, if done correctly, it can open up great opportunities for your business in the local market.
If you’re looking for a trusted partner to simplify this process, Mari Berdikari Consulting is here to help. With extensive experience in assisting company registrations across Indonesia, we ensure that every step is handled efficiently, allowing you to focus on growing your business without being burdened by administrative tasks.
From preparing the Deed of Establishment to obtaining the required permits and patents, every step requires attention to detail. Let Mari Berdikari Consulting help you start your business journey with confidence and ease.
