Business
Indonesia — Business: Sole Proprietorship
A sole proprietorship (Usaha Dagang) has no minimum capital and unlimited owner liability; foreigners need a valid residence permit and sector restrictions apply.
VerifiedProfessional tax guide — not a government sourceDeel guide to sole proprietorship in Indonesia (commercial source)Last reviewed: 2026-10-26
Key facts
- Foreigners can register only with a valid residence permit and subject to sector restrictions.
- Registration needs an NPWP (free, via the DJP Coretax system) then a Business Identification Number (NIB) through the OSS system.
- Liability is unlimited: the owner and the business are legally the same.
- There is no minimum capital; documents are ID or passport, NPWP, a domicile certificate and any sector licences.
- Residents pay progressive income tax of 5% to 35%, non-residents generally 20% on Indonesian-source income; VAT is 11%, mandatory above IDR 4.8 billion turnover. The source says a 0.5% turnover tax "may apply"; verify with DJP.