Local Company Registration in Indonesia

According to Job Creation Law No. 11 of 2020, Perseroan Terbatas (PT) or Limited Liability Company is a local-owned legal entity in the form of shareholding or capital venture, bound by a pact of agreement, which strives to do business with base capital that is divided in either shares for individual legal entities or another legal entities. Registering a company as PT puts the owner in a secure legal position, thus creating a stronger platform for the company to be successful. 

Two Types of Perseroan Terbatas in Indonesia

  1. Perseroan Terbatas (Limited Liability Company) registered by more than one person.
  2. Perseroan Terbatas Perorangan (Individual Limited Liability Company), registered by one person.

Perseroan Terbatas (PT) Registration Procedures

This is the official document stating the legal validity of the company, containing the Articles of Association which contains the proposed company name, capital, structure, and purpose of the company. With the assistance of a Notary, the documents will then be processed for approval by Ditjen AHU (Directorate General of General Laws) under the Ministry of Law and Human Rights. Upon the Approval the Ministry of Law and Human Rights will issue Surat Keputusan / Approval Notice of the establishment. The PT will be considered as a legal entity after acquiring the Approval by the Ministry.

As a business that is going to generate revenue, your PT will have the obligation to pay tax to the Indonesian government. To get your NPWP number, you can submit an online application on the website of the Directorate General of Tax (Direktorat Jenderal Pajak).

NIB or Business ID Number is an identification that needs to be owned by prospective businesses. After acquiring a Business ID number, your PT will be able to apply for more permits like Business Permit or Commercial Permit. The Business ID number is issued by the Indonesia Investment Coordinating Board (BKPM) through their Online Submission System (OSS). The OSS system will also cover the issuance of certain business licenses and location permits to legalize the operation of the PT

How can Double M Help?

At Double M, we are committed to assist you throughout the entire procedure of local company registration in Indonesia. Should you have any inquiries, please contact us.

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