Effortlessly incorporate and manage your company in Indonesia with Vepapu—offering all-in-one services from registration to compliance, banking, and visa support.
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Unlock Growth Opportunities in an Emerging Market
Reduced operational costs, including labour, rent, & overheads.
Simplified compliance requirements and regulatory processes.
A large and young population provides a dynamic workforce.
Allows for foreign shareholding up to 100% in the company.
Everything You Need for Seamless Company Formation
Our all-inclusive package will take care of all the essentials to successfully incorporate your company in Indonesia, 100% remotely.
Name availability checks
Article of Association by Public Notary (AKTA Notaris)
Deed of Establishment
Submission of AKTA to Ministry of Law and Human Rights
Collection of incorporation documents from SK Kemkumham
NPWP (Company Tax Number)
OSS License Izin Usaha
NIB (Nomor Induk Berusaha)
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Meet the local requirements online with Vepapu. Having a local registered office address is mandatory for your company's registration and we will help you meet this requirement. We will receive, scan, and email you if any mail is received from the authorities at your address.
You can also build a physical presence in the country by opting for our nominee director services, who will act as your company's director while you retain total control over your company.
You can capitalise on our strong banking relationships with traditional banks as well as digital-first banking providers.
You would need to physically visit the bank's location if you opt for a traditional brick-and-mortar bank, while modern digital banking providers welcome you with an online onboarding process.
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We will assist you with your temporary-stay or long-term visas for yourself, dependents, and foreign employees.
Visa application preparation
Submission of your personal and company documents to the Ministry of Manpower and Immigration
Follow-up and Collection of your KITAS
Business Visa
Investor KITAS
Working KITAS
Dependent KITAS
Long-term KITAP
Complex legal requirements after company formation might make you feel overwhelmed. But no worries with Vepapu.
Vepapu helps your business maintain good standing with local laws. We provide timely updates and assistance with regulatory changes, ensuring you always have a reliable partner at your side.
Focus on growing your business while we handle and notify you of upcoming compliance deadlines, keeping you ahead and stress-free.
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Simplify your bookkeeping with Vepapu. We keep your records meticulous and audit-ready.
We handle your tax filings accurately and on time, ensuring full compliance.
Streamline payroll and ensure compliance with employment laws using Vepapu.
We ensure timely and accurate submissions for all your periodic government filings.
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Handle board and shareholder changes effortlessly with Vepapu. We streamline all your essential corporate paperwork, ensuring quick and compliant updates.
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Mandatory documents and information required for your company formation
A certified true copy (scanned version) of the passport (valid for at least 6 months)
A comprehensive Curriculum Vitae (C.V.), Resumé, or Linkedin profile.
One of the scanned copies of a bank reference, bank statement, Utility bill, or Driver license.
It should clearly show the holder's full name along with a physical address written in English (P.O. Box addresses are not accepted).
It must be the most recent version and dated within the last 3 months.
Please provide us with certified true copy (scanned version) of the following company documents:
Certificate of Incorporation
Memorandum and Articles of Association / Constitution
Register of Director
Register of Shareholder / UBO
Extract of the company’s details from the Registrar of Companies, which can include any of the following: Business Profile / Certificate of Incumbency / Certificate of Good standing (valid for within 6 months if any).
All members of the corporation, including Directors, Shareholders, Ultimate Beneficial Owners (UBOs), and Contact persons, must provide identity and address proofs as mentioned above.
From Paperwork to Approval: Making Company Formation Fast and Straightforward
Click here and fill out the short form to let us know your requirements.
Afterwards, our team will get in touch with you to guide you through the process.
Begin the company incorporation process by sharing the requested documents, as listed here. This enables us to begin the mandatory KYC and due diligence procedures to comply with local and international laws.
During the process of due diligence, our team might request additional information, documents, or clarification as needed.
If you ever feel lost while organising the documents, please contact us, as your dedicated manager from Vepapu will guide you through it.
Our team will now have the required information and documentation in hand to proceed with completing the required paperwork involved in incorporating your company.
We will complete one or multiple application forms as required and coordinate with the registry to submit them for their official approval.
We will do timely follow-ups with the registry and actively work with them if they require any further clarification or documentation before their approval.
If there are any other registrations with different government departments that are generally required before commencement of any business, required for your specific business industry, or that you have chosen voluntarily, we will promptly complete them.
As Vepapu strongly believes that company incorporation is just the first step in any business journey, we will accompany you throughout your business's life cycle by keeping it in good standing with local rules and regulations.
We will take care of monthly, quarterly, bi-annual, or annual reports and return filings with the authorities. We will timely inform you of the upcoming compliance deadlines, such as conducting an annual general meeting, for your prompt action.
Get in touch and ask us anything. We'd love to help.
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Indonesia offers multiple entity structures that cater to foreigners and local Indonesians. Each structure comes with its own unique requirements in terms of share capital, nationality of members, compliance, etc.
Note that PT and PT PMA are the same legal entity type, the difference is just whether a company has only local or also (some) foreign shareholders.
The following are the legal entity types that are open to foreign shareholding:
PT PMA stands for "Perseroan Terbatas Penanaman Modal Asing," which translates to "Limited Liability Company for Foreign Investment" in English. PT PMA is the most recommended structure if you have or will have foreign shareholders in your company. This company type allows foreigners to hold up to 100% of the equity in the company and doesn't restrict Indonesian residents from holding some portion of the capital table.
If your company is incorporated outside of Indonesia but is looking for fast-track access to the Indonesian business ecosystem with the aim of acting as a supervisor, liaison, coordinator, and also as a representative of the parent company’s interests in Indonesia, then opening a representative office, which is called "Kantor Perwakilan Perusahaan Asing," is the recommended option for you.
If you are looking to register a company in Indonesia that can act as a selling, manufacturing, and buying agent for your parent company that is located outside of Indonesia, then it is recommended to check out the KP3A structure, which is a short form of "Kantor Perwakilan Perusahaan Perdagangan Asing."
If you are a foreign construction service company and are looking to collect information about available construction projects and participate in tenders in Indonesia, you can set up a BUJKA, or "Badan Usaha Jasa Konstruksi Asing."
The following are other legal entity types that accept only local shareholders:
The PT structure, which is the short form of "Perseroan Terbatas," is a limited liability company in Indonesia. A PT entity can only have shareholders who are local residents and there cannot be any foreigners. Note that PT and PT PMA are the same legal entity type; the difference is just whether a company has only local or also foreign shareholders.
It is a limited partnership business type in Indonesia that has two types of partners: active partners who provide capital as well as run the business and silent partners who provide capital only. Since this is not a separate business structure, it does not protect assets or liabilities of the partners.
This is a structure that is registered to promote welfare of the members and society with the aim of building the national economy.
Firma, which is called a Firm in English, is a business type in which two or more people join together using an agreement to deal with third-parties with the aim of earning profits.
Yes, PT PMA (Penanaman Modal Asing) is the form of a limited liability company that allows foreign shareholding up to 100% while still enjoying all the benefits of a PT company, which is traditionally reserved for Indonesian residents. Due to several reforms in the field of foreign direct investment (FDI), Indonesia now permits foreign businesses or individuals to incorporate and operate their companies through the PT PMA structure. As of recent updates, Indonesia has streamlined the investment process, making it more attractive for foreign investors by reducing bureaucratic hurdles and offering incentives in various sectors.
Foreigners incorporating a PT PMA in Indonesia can not only incorporate and own their businesses entirely but also enjoy the same benefits as domestic companies. These benefits include the ability to sponsor working visas for foreign employees, including themselves, facilitating smoother operations and the ability to bring in essential expertise. Additionally, the World Bank's Doing Business Report has highlighted Indonesia's significant improvement in the ease of doing business, ranking it 73rd in 2020, up from 91st in 2017. This upward trend reflects the country's commitment to fostering a more business-friendly environment, making it a compelling destination for foreign investors.
A minimum of one director is required. There is no local director requirement; a director can be a foreigner or a local Indonesian resident. Please note that if the director is a foreigner, having a valid work permit is a must. Corporate directors are not allowed. A director must be a legal natural person who is legally residing in Indonesia to take care of the company's day-to-day activities.
A minimum of two shareholders are required. In PT PMA, there must be at least one foreign shareholder. Shareholders can be corporate or natural persons from any part of the world. There can also be Indonesian residents as shareholders but it is not mandatory. Up to 100% foreign ownership is allowed for most business classifications if the industry is not mentioned in the Negative Investment List. Shareholders can also serve as directors or commissioners.
A minimum of one commissioner is required. There is no local commissioner requirement; a commissioner can be a foreigner or a local Indonesian resident. Please note that if the commissioner is a foreigner, then having a valid local work permit is mandatory.
PT PMAs are classified as large-scale enterprises in Indonesia and hence the minimum value of the investment plan for each business activity is IDR 10 billion (approximately USD 618,000). The minimum paid-up capital or deposited capital is IDR 10 billion (approximately USD 618,000). Including a local shareholder doesn't reduce the minimum paid-up capital requirement unless they own 100% of the company.
To verify the required investment amount, PT PMAs must provide proof of funds. This can be achieved through a Capital Statement Letter affirming shareholder financial capability or by depositing the funds directly into the company's bank account. The specified capital amount, as outlined in the Deed of Establishment and notarised, can be utilised for various business expenses, including employee salaries, operational costs, and product expenditures.
Having a registered office address in Indonesia is mandatory. Foreign companies are allowed to use a virtual office, dedicated desk, or serviced office in Indonesia as their business address.
To incorporate a company in Indonesia, you need to prepare and submit various documents. These documents are essential to comply with Indonesian regulations and ensure your business operates legally. The documents will be used in KYC due diligence procedures, application preparation, and stage of documents submission to the authorities.
Incorporating a company in Indonesia involves a series of steps that ensure compliance with local regulations. This guide provides a concise and straightforward overview of the process for both local and foreign companies, specifically PT PMA (foreign-owned companies).
Reservation: The first step in company registration in Indonesia is to reserve your company name with the Ministry of Law and Human Rights (MOLHR). The name must consist of at least three words in Bahasa Indonesia for local companies, while PT PMA companies can use names in English or other languages.
Approval Criteria: Ensure the name is not misleading, against morality, or similar to existing company names. Approval usually takes one working day, and you can reserve the name for up to 60 days.
Preparation: The Articles of Association (AKTA) must include details such as company name, location, objectives, business activities, and capital structure. This document serves as the manual for your business operations.
Notarization: A notary public must draft and notarize the Articles of Association. All shareholders need to sign this document before submission.
Submission and Ratification: Submit the notarized Articles of Association to the MOLHR for ratification. Upon approval, the MOLHR issues the Deed of Establishment (SK Kemenkumham), officially recognizing your company as a legal entity.
Letter of Domicile: Obtain a letter of domicile from the local government, confirming the company's operational address. This is required for further registrations.
Application: Register with the local tax authority to obtain a Taxpayer Registration Number. This is essential for fulfilling tax obligations and opening a corporate bank account.
Methods: Applications can be made online through the Directorate General of Taxes or by visiting a local tax office.
Online Submission: Apply for the NIB through the Online Single Submission (OSS) system. The NIB integrates various business registration aspects, including import licenses and BPJS (social security) registration.
Business Licenses: Depending on your business classification, you may need additional licenses, such as a Commercial License, which can be obtained through the OSS.
Employee Commitments: Register for national social security insurance (BPJS) and submit employment reports (WLK) as required by Indonesian law.
Publication: The Articles of Association and other necessary documents must be submitted to the State Printing Office for publication in the State Gazette. This step is handled by a notary and is required within 14 days of obtaining all necessary approvals.
Timeline for Company Incorporation
The entire process of company incorporation in Indonesia, particularly for a PT PMA, typically takes between 4 and 6 weeks. Here is a rough breakdown:
After successfully completing the company's incorporation in Indonesia, maintaining compliance with ongoing regulations is crucial for smooth operations and legal standing. This section outlines the essential compliance requirements for both local and foreign companies, including PT PMA (foreign-owned companies), to help you navigate the regulatory landscape effectively.
Under Article 29 of the Company Law, the company registry must contain the following information, up-to-date with any changes:
The annual GMS should be conducted no later than six months after the end of the accounting year. The meeting can be held at the company's domicile or business location, or via teleconference. The following reports should be submitted during the GMS:
The financial year-end for Indonesian companies aligns with the calendar year (1 January to 31 December). If your company's financial year differs, the reporting deadline is four months post the financial year-end. Auditors are appointed during the GMS and the appointment is assigned by the board of commissioners.
The LKPM, or Laporan Kegiatan Penanaman Modal, is a quarterly report detailing the progress of investment activities. It must be submitted through the OSS system and includes:
Failure to submit the LKPM can result in warnings and potential sanctions, including the revocation of business licenses.
The annual tax return, known as SPT, must be submitted by the end of the fourth month following the fiscal year-end. This includes:
When incorporating a company in Indonesia, obtaining a work visa is mandatory for foreign members of the company before they can start working. This ensures compliance with Indonesian immigration laws and allows foreign employees to legally reside and work in the country. There are two main types of work visas in Indonesia: KITAS and KITAP.
The KITAS, or Limited Stay Permit, is a temporary residency permit that allows foreigners to live and work in Indonesia for a specific period, typically up to 12 months, with the possibility of extension. This permit is suitable for those who are on short to medium-term assignments in Indonesia. Key aspects of KITAS include:
Types of KITAS - Work KITAS, Spouse KITAS, Retirement KITAS, and Student KITAS.
Eligibility - Foreign employees, investors, and family members of Indonesian citizens or KITAP holders.
Application Process - Involves obtaining a work permit (IMTA), sponsored by an Indonesian entity, followed by the issuance of the KITAS.
The KITAP, or Permanent Stay Permit, is a long-term residency permit that allows foreigners to reside in Indonesia indefinitely. This permit is ideal for expatriates who have lived in Indonesia for an extended period and wish to settle permanently. Key aspects of KITAP include:
Eligibility: Holders of KITAS for a minimum of three consecutive years, foreign spouses of Indonesian citizens, and investors.
Application Process: Requires sponsorship by an Indonesian entity or individual, proof of long-term residency, and fulfillment of other specific requirements.
Benefits: Provides greater stability and fewer renewal processes compared to KITAS. KITAP holders can work without needing a separate work permit and have similar rights to Indonesian citizens in terms of property ownership and business operations.
General Rate: The corporate income tax rate for PT PMA companies in Indonesia is 25%.
Small Enterprises: Companies with a turnover of up to IDR 4.8 billion (approximately USD 320,000) are eligible for a reduced tax rate of 0.5% until the turnover exceeds the threshold.
Tax Residents: Employees who are tax residents are subject to a progressive income tax rate ranging from 5% to 30%. Additionally, they must contribute to social security taxes, which include:
Non-Tax Residents: Non-tax resident employees are subject to a flat income tax rate of 20%. Furthermore, a 5% tax may be applied to the sale of certain shares or assets owned by non-tax residents.
Threshold: VAT registration becomes mandatory when a company’s sales turnover exceeds IDR 4.8 billion (USD 320,000).
Rate: The general VAT rate is 11%.
Filing: Companies must submit quarterly VAT returns and pay the VAT within 40 days after the end of the VAT period.
Certain goods and services are exempt from VAT, including:
Goods: Meals and drinks provided in restaurants and hotels, natural resources like crude oil and natural gas, essential commodities like rice and eggs, and gold bars for government reserves.
Services: Religious services, entertainment, hotel, parking, catering, educational, medical, public transportation, financial, and labor services.
Monthly Reports: VATable entrepreneurs (PKP) must report their VAT and business activities monthly by the end of the following month.
Late Filing: A fine of IDR 500,000 for late VAT returns.
Late Payment: A monthly charge of 2% on the outstanding VAT amount.
Incomplete Invoices: Penalty of 2% of the tax base for failure to generate timely and accurate invoices. Invoices must be retained for a minimum of ten years.
