How Do You Register a Local Company (PT) in Indonesia in 2025?
Indonesia stands out as one of Southeast Asia’s most attractive destinations for entrepreneurs and investors. With a rapidly expanding economy, rich natural resources, and ongoing improvements in the ease of doing business, the country presents significant opportunities for both domestic and foreign enterprises.
One of the most commonly adopted business structures is the Limited Liability Company in Indonesia, known locally as Perseroan Terbatas (PT). This corporate structure offers shareholders legal protection while supporting efficient operations in line with Indonesian regulatory requirements.
However, for first-time investors and business owners, the process of registering a company in Indonesia can be intricate. This comprehensive guide outlines each step clearly, equipping you with the knowledge and direction needed to successfully establish a Limited Liability Company (PT) in Indonesia in 2025.
What Is a Local Company (PT)?
A PT company is one of the most recognisable local business entities. Locals can use this local company option to launch their business in Indonesia. Perseroan Terbatas is a limited liability company per the local laws. As such, only citizens of the country can be registered as shareholders and hold shares of their own.
Why do many business owners choose this PT option in Indonesia?
It is because this is one of the few business entities in Indonesia that allows you to run a business activity of your own choosing. Compare that to a PMA (a foreign company entity) where not all business activities are allowed, a PT in Indonesia seems like the best possible option.
What are the PT’s Distinguishing Traits in Indonesia?
Following are the traits that set this local company apart from all the others:
- PT is not subject to the country’s Negative Investment List.
- You need two shareholders and one director to establish the company in Indonesia.
- You need one person to act as the commissioner.
- The company registration process in Indonesia can be completed within 39 days.
How Much Capital Is Required in the formation of Perseroan Terbatas (PT) in Indonesia?
The capital required for this local company (PT) formation depends on the size of your business:
- A Small Company – Between IDR 50,000,000 – 500,000,000.
- A Medium Company – Between IDR 500,000,000 – 10,000,000,000.
- A Large Company – More than IDR 10,000,000,000.
What is the Local Company(PT) Formation Process in Indonesia?
Establishing a company in Indonesia involves several key steps to ensure compliance with local regulations. Here’s a comprehensive overview of the process:
1. Reserve Your Company Name
Begin by selecting a unique company name that aligns with Indonesian naming conventions. The name must consist of at least three words and not resemble existing entities or government institutions. Submit your name to the Ministry of Law and Human Rights (MOLHR) for approval. This step typically takes one working day.
2. Draft the Deed of Establishment
Engage a local notary to prepare the Deed of Establishment, which includes your Articles of Association, company objectives, shareholder details, and management structure. Once notarised, submit the deed to the MOLHR for ratification, officially recognising your company as a legal entity.
3. Obtain a Certificate of Domicile
Secure a Certificate of Domicile (Surat Keterangan Domisili) from the local government office where your company is located. This document verifies your business address and is essential for subsequent registrations.
4. Register for a Tax Identification Number (NPWP)
Apply for a Tax Identification Number (Nomor Pokok Wajib Pajak – NPWP) at the local tax office. This number is crucial for tax reporting and compliance.
5. Obtain a Business Identification Number (NIB)
Through the Online Single Submission (OSS) system, register for a Business Identification Number (Nomor Induk Berusaha – NIB). The NIB serves as your company’s primary identification and is required for various business activities.
6. Acquire Necessary Business Licenses
Depending on your business activities, you may need to obtain specific licenses, such as:
- Trading Business License (SIUP) for general trading activities.
- Industrial Business License (IUI) for manufacturing sectors.
- Tourism License (TDUP) for tourism-related services.
- Construction Services Business License (IUJK) for construction services.
These licenses can be applied for through the OSS system.
7. Register with Social Security Agencies
Enrol your company and employees with the Social Security Administration Bodies:
- BPJS Kesehatan for health insurance.
- BPJS Ketenagakerjaan for employment benefits.Registration ensures compliance with labor laws and provides essential benefits to your employees.
8. Open a Corporate Bank Account
Finally, open a corporate bank account in Indonesia to manage your company’s financial transactions. This account is necessary for capital deposits and daily operations.
By following these steps diligently, you can establish a compliant and operational company in Indonesia.
At 3E Accounting, company formation is our forte. With years of hands-on experience and deep local insight, our dedicated team is here to simplify every step of your business setup journey in Indonesia. From the initial paperwork to full compliance, we make incorporation seamless and stress-free. Starting a company can feel overwhelming, but with the right partner, it doesn’t have to be.
Contact us today to learn more about how we can support your business goals in Indonesia.
