Business
Indonesia — Business: Company Formation
Relocating to Indonesia for business involves forming a company, which can be achieved through various forms such as a Limited Liability Company (PT). Specific requirements and regulations may not be well-documented in English.
VerifiedGovernment / official sourceInvestment Procedures | IIPC SYDNEY - BKPMLast reviewed: 2026-10-23
Key facts
- A foreigner can hold up to 49% of shares in an Indonesian company.
Steps
- Step 1: Choose a business name — The company name must comply with Indonesian laws and regulations. It is recommended to check the availability of the name before finalizing it.
- Step 2: Obtain necessary licenses and permits — The type and requirements of licenses and permits vary depending on the industry and location of the business.
- Step 3: Register the company — The company must be registered with the Ministry of Law and Human Rights and the tax authority.
- Step 4: Obtain a tax ID number — The tax ID number is required for tax purposes and must be obtained from the tax authority.
Costs
- Professional service fees for incorporation: USD 2,500 to USD 5,000, depending on the complexity of the case
- Mandatory capital requirements: not specified, but can be a significant cost depending on the type of company
Timelines
- Processing time for company registration: varies depending on the complexity of the case and the efficiency of the authorities
Required documents
- Company name approval from the Ministry of Law and Human Rights
- Articles of Association
- Director's ID card
- Shareholder's ID card
- Tax ID number
Common mistakes
- Not complying with Indonesian laws and regulations
- Not registering the company with the tax authority