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COMPANY REGISTRATION IN INDONESIA
For business and investment in Indonesia, we highly recommend you establishing and registering the company legally and safely. In the other case, from a working perspective, you are not allowed to do anything here.
There are 3 ways of processing to start a company in Indonesia:
- Local Company
- Foreign Direct Investment Company or Foreign-owned Limited Liability Company known as PT. PMA
- Representative Office
For those who are foreign investors, you can choose the PT. PMA types to create a business entity in Indonesia. Foreign-owned Limited Liability Company (PT. PMA or Penanaman Modal Asing) is a legal entity that can be fully owned by foreign investors. However, the maximum foreign ownership is determined by the business sector and business activities following the Indonesian Investment Coordinating Board or Badan Koordinasi Penanaman Modal (BKPM) regulations.
How to establish PT. PMA :
- Step 1: Approval of Company Name – It should consist of a minimum of 3 words.
- Step 2: Company Deed – A notarial deed drawn up by the Notary including article of association, shareholdings, and Board of Directors and Board of Commissioner.
- Step 3: Legal Entity Approval from MoLHR – the Ministry of Law and Human Rights will approve Company Deed submission by the notary.
- Step 4: Registration of Tax Identification Number (NPWP). Tax ID is important for your business transactions, banking activities, export/import activities, etc.
- Step 5: Business Identification Number – NIB is a 13-digit registration number. It serves as a business owner’s identity to conduct its business activity. Every business owner should obtain NIB first before getting started to process all business licenses needed to legally conduct their business.
We will gladly assist you with the following services:
- COMPANY REGISTRATION
- BUSINESS & IMPORT/EXPORT LICENSES
ACCOUNTING & TAX REPORTING
BUSINESS & IMPORT/EXPORT LICENSES
A business license is required for any business activities and companies, including foreign-owned companies (PT PMA). Nomor Induk Berusaha (NIB) is a business license that your business can obtain from the OSS system.
In order to help you expand your business, Bali Mania Indonesia will help you obtain special licenses like Halal Certification, Medical and BPOM Distribution License, Cosmetic Distribution License, and Import Clearance.
ACCOUNTING & TAX REPORTING
The basic tax obligation is Income Tax (Pajak Penghasilan or PPh) which is progressive and applied to both individual(s) and enterprises. A PT. PMA that is located and carries out business activities in Indonesia and foreign individuals who are working and earn income in Indonesia generally have to assume the same tax obligations as resident taxpayers. A self-assessment method is used to calculate income tax.
The Withholding Tax (Pajak Pemotongan) system is used in Indonesia to collect income tax. Where a particular item of income is subject to withholding tax, the payer is responsible for withholding or collection of the tax. For example, employers are required to withhold income tax from the salaries payable to their employees and pay the tax to the tax office on their behalf.
Bali Mania Indonesia will assist you and your business to comply with accounting and tax reporting rules in Indonesia including Land and Building Tax, Value Added Tax, and Income Tax.