Shake Hands


Our team of professional advisors provide local and foreign investors with guidance on corporate matters. Our experience and up to date knowledge of prevailing laws and regulations means we are able to reduce the risks associated with your investment project. Our professional project managers will consult with you so you can correctly structure your investment, quickly establish your company, legitimately obtain all required operating permits and licenses, and confidently ensure your business is compliant with tax and reporting requirements.


Thumbnail Quick Guide to Establishing a Forreign Investment Company

Quick Guide for Foreign Investors Establishing a Business in Indonesia


A foreign investor who wants to own a business in Indonesia must establish a foreign investment limited liability company. This is referred to as a PT PMA (Perseroan Terbatas Penanaman Modal Asing). Assuming the foreign investor is not restricted by the Negative Investment List and they have the required capital, they will also need to acquire the relevant business permits and licenses for their business sector. Examples include, a Business Permit (Izin Usaha/Izin Industri), a construction license (SIUJK), and a shipping license (SIUPAL/SIUPKK) …read more


We assist clients in obtaining Investment Registration and other Business Licenses, including but not limited to Construction Representative Office (BUJKA); Construction (SIUJK); Location Permit for Development (IL); Location Permit for Plantations (IL); Hotel and Tourism License; Fintech License; Software Application Registration Transportation (SIUJPT)


Setting Up Your Foreign or Local Business

Whether you are plan to start a foreign or local limited liability company, a local partnership or other legal entity in Indonesia, we provide step by step guidance on what to prepare for your investment and how to ensure that you are in compliance with the existing regulations. A brief summary of the processes is set out beloU

Establishing a limited liability company that is approved for foreign investment (PT PMA)

If you plan to establish a wholly owned foreign investment limited liability company (PT PMA), you must ensure you keep up to date with the changing regulations.

Recently, the Indonesian government has taken steps to simplify the process required for establishing a limited liability company that is approved for foreign investment (PT PMA).  The new process is as follows:

  1. You must have a business plan. You need to decide how much capital to invest, what is the scope of your business, where the business will operate from, who will be the shareholders and management of the company. There is a minimum of two shareholders, one director, and one commissioner required to set up a company. The shareholders may also function as the director or commissioner. However, the commissioner cannot have a double function as the director.
  2. Your must register the name of the company. The name of the company must be at least three words. Only a foreign investment company (PT PMA) is allowed to use English words in the name of the company.
  3. Your must sign the deed of establishment in front of a The new shareholders of the company shall appear before the notary to sign the deed of establishment. The product is the company’s Articles of Association and the approval by the ministry of law and human rights.
  4. You must obtain a company registration number (NIB)-Online Single Submission (OSS) license and Tax Registration number (NPWP). After the NIB registration-OSS license and NPWP, the company is ready to start hiring, and can open a company bank account. For specific businesses, you will be required to obtain additional licenses before you can start the business operations.

For a foreign investment company, the minimum authorized capital must be more than IDR10,000,000,000 and at least 25% must be paid up. Please note that a company must be registered as a foreign investment company (PT PMA) when one of the shareholders is foreign, even if the foreign entity only owns 1 share of the company.

The Presidential Regulation no 44 year 2016 (the Negative List) details the type of businesses that are closed or limited to foreign ownership. If you are a foreigner interested in starting a business that is restricted to foreign investment, please note that nominee arrangements are prohibited in Indonesia. 

Establishing a Representative Office

A foreign company wanting to have a presence in Indonesia but who is not quite ready to inject capital into the country may opt to establish a Representative Office instead. A Representative Office, with the exception of a Construction Representative Office BUJKA, is restricted from issuing invoices, so any commercial transactions made must be invoiced by the parent company abroad. Representative Offices are typically set up for market research purposes or to provide supporting functions to parent companies. A Representative Office permit is valid for 3 years and may be renewed. 

Establishing a limited liability company that is 100% Indonesian owned (Local PT)

The process for establishing a local limited liability company (Local PT)  is similar to that of establishing an approved foreign investment limited liability company (PT PMA) but without as many restrictions or requirements. 

Establishing a partnership

A partnership in the form of a Commanditaire Vennootschap (CV) is established by two or more people planning to run a business together. A CV can only be established by Indonesian citizens. The process is similar to establishing a local limited liability company (Local PT). A CV is registered at the District Court instead of approved by the ministry of law and human rights.CV 

Offshore Establishment (Outside Indonesia)

Offshore establishment is the incorporation of a company overseas by non-resident/foreign individuals. Reasons for offshore establishment include: the need to have a local presence; the protection of assets; and the use of trusts.

Different counties have different regulatory requirements. To ensure your business meets the requirements of foreign laws and regulations, Prudenta Business Advisory provides assistance with offshore establishment and maintenance so that you can focus on expanding your business locally as well as internationally.

Business Compliance After Establishment

After establishment, a company is required to adhere to the Indonesian tax and non-tax compliance. The tax compliance requirements may include:

  • Monthly corporate tax payment and reporting;
    • Withholding income tax
    • Final tax
  • Annual corporate tax payment and reporting;
    • Summary of financial transactions done in a year
  • Annual individual tax payment and reporting;
    • Summary of worldwide income and assets added and/or available
  • Taxable Entrepreneur (PKP) application.
    • Collection and payment of VAT

The non-tax compliance requirements may include:

  • Quarterly Investment Progress Report (LKPM);
    • Information regarding the investment and hiring done within the 3 months reporting period
  • Social security and health care membership (BPJS);
    • Registration and monthly payment of social security programs for employees hired
  • Work and limited stay permits for foreign employee;
    • Permits required for foreign employees hired to work in Indonesia
  • General Meeting of Shareholders;
    • Approval of activities done by the company and/or amendment of company structure or Articles of Association
  • Permits and/or licenses applicable for operational purposes.
    • Availability of required permits and licenses for certain operating activities

Prudenta Business Advisory provides assistance for business compliance so that you can focus on generating profit for your business.

Company NIB Registration-Online Single Submission (OSS) License

The government regulation PP 24 year 2018 requires all businesses to be registered in the online single submission (OSS) system. Upon registration, you will receive a unique business identification registration number (NIB) which also functions as the company registration, import license, and customs registration. Through the OSS system, you can obtain the basic licenses required to start business operations. The OSS system also assists business owners by informing them of the compliance requirements.

Notarial Deeds

A notarial deed is a legal document prepared and stated before the notary. The document can be any type of agreement, power of attorney or statement letter. Preparing these documents in the form of a notarial deed reinforces the legality and existence of such document as they are reported by the notary to the ministry of law. In addition, certain regulations, such as those relating to company law, mandate the type of documents that must be prepared in the form of a notarial deed.

Support Services

Once a company is established, it is recommended to have a range of supporting services that are available on demand.  Prudenta Business Advisory provides on demand support services, including:

  • Translation services;
  • Legalization services;
  • Secretarial services;
  • HR services; and
  • Advisory services.


“Thank you to Putranto Alliance for reviewing Johnny Rockets legal contracts. The team was very professional in meeting our requests. We will continue to work with Putranto Alliance and will tell other companies to do the same.”

– Ms. Anindya Sastrawinata, Johnny Rockets Indonesia

“Peak Finance provides a great bridging loan facility. The best that I have ever come across in my career. It even puts banks to shame.”

– Mr. Adi Utama Soegiarto Hanafi, Royale Hill

“Putranto Alliance provided us with a great quality service. Their service made us feel comfortable to rely on them in areas where we lacked expertise.”

– Mr. Hendro KakalimCo-Founder Cashpop

“They are helpful in all aspects of business as well as legal compliance. We feel that we are in good hands. Their speed and knowledge made it easy for us to work with them.”

– Mr. Daniel Handojo, Century 21

Time to Talk?

 Phone: +62 21 520 4989 

To speed up our response time, please fill in the form below or book a meeting directly with one of our professionals.