Indonesia business compliance

Key requirements for company registration in Indonesia

General overview of the requirements for setting up a PT PMA company (Limited liability company with foreign ownership)

Appointing Company Officials

1. Appoint at least 2 shareholders, 1 Resident Director, and 1 Commissioner

2. Shareholders can be both individual or corporate

3. Up to 100% foreign ownership is allowed for most business classifications

Capital Requirements

1. The official capital requirement for a PT PMA Company in Indonesia is 10 bilion IDR / 645.540 USD ( Rate September 2024)

2. The full IDR 10 Bilion must be fully paid up, unlike domestic capital PTs.

3. The capital does not have to be injected into the company directly, any uninvested capital becomes the owner’s liability

4. Including local shareholders does not effect the capital requirement (unless they own 100% of the company)

Risk-based Assessment Licence Issuance

1. Depending on your business’s risk category, secure the necessary operating licenses.

2. Low risk business receive instant licenses, while medium or high risk businesses need to fulfill additional requirements.

Choosing a Business Classification Number or KBLI

1. KBLI defines a company’s business activities and investment commitments

2. Determines the type of foreign workers you can hire, and requires IDR 10 bilion perk KBLI group.

3. Depending on risk level, may need additional approvals and license.

4. Dana Consultats can assist you in choosing the correct KBLI

Maintaining a PT PMA

1. BPJS Registration: Mandatory social security registration

2. Manpower Reporting: Compliance with employment regulations: submitting data on employee contracts, working conditions, and other labor-related matters.

3. PKP Registration : Mandatory if gross turn offer minimum 4.8 or about bilion IDR

4. For your further inquiries, Dana Consultants can handle regular filings to maintain your PT PMA

Registered Address

1. A company must have a registered address at a commercial building

2. If you don’t plan to rent an office, dana consultants can provide a virtual office.