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PT Company Registration in Indonesia
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PT Registration - Who is it for and what are the benefits
PT Registration, short for Perseroan Terbatas company registration, is specifically for businesses in Indonesia that wish to establish a limited liability company.
PT Registration is suitable for Indonesian entrepreneurs who want to establish a formal legal entity to conduct their business activities. It provides a structure that separates personal assets from business liabilities, offering limited liability protection.
A PT (Perseroan Terbatas) is a local company, designed for Indonesian citizens and therefore we would only recommend setting up this type of business if you are either Indonesian or have a trustworthy Indonesian partner. If you are a foreigner we would recommend setting up a PMA. To find out more about PMA Establishment, you may check our PT PMA Establishment Page here!
Additionally, there are some business entities that are only available to Indonesian Companies, therefore, even if you are a foreign company or individual, you may still need to set up a PT.
At Lets Move Indonesia, we specialise in assisting businesses with PT company registration and provide comprehensive support throughout the process, helping you establish a strong legal foundation for your business in Indonesia.
Lets Move Indonesia’s expert teams are located across Jakarta & Bali, ready to assist you completely with a hassle-free company registration process!
Company Registration Process
- Register a company name with the Notary. The name must contain 3 words
- The Notary will make a draft Deed of Establishment
- Decree Approval will be issued by the Ministry of Law & Human Rights
- Obtain a Tax Registration ID
- Obtain the Registration Number (NIB/Nomor Induk Berusaha)
- Obtain the Business License through the Online Single Submission System
- Obtain the Commercial License (if applicable)
- Limited Liability Protection: One of the primary benefits of PT registration is limited liability protection. The shareholders’ liability is generally limited to the value of their subscribed shares, minimizing personal financial risk in the event of business debts or legal issues.
Benefits of Setting Up a Company Registration in Indonesia
Seperate Legal Entities
A PT is considered a separate legal entity from its shareholders. This distinction provides the company with the ability to enter into contracts, acquire assets, and engage in legal proceedings on its own behalf, separate from its owners.
Investor Attraction
PT registration can enhance your business’s credibility and attract potential investors. Many investors prefer to invest in formal legal entities that offer limited liability protection and clear corporate governance structures.
Access to Local Market
Registering as a PT enables you to access the vast Indonesian market. It demonstrates your commitment to complying with local regulations and building trust among local customers, suppliers, and partners.
Perpetual Existence
A PT has perpetual existence, meaning it continues to exist regardless of changes in its ownership structure or the death of shareholders. This ensures continuity and stability for long-term business operations and future succession planning.
Financing Opportunities
PT registration opens doors to various financing opportunities, such as accessing bank loans, attracting investment, and issuing shares or bonds to raise capital for business growth and expansion.
Minimum Requirements to Register a PT in Indonesia
- 2 Local Shareholders
- 1 Local Director
- 1 Local Commissioner
Minimum Capital for Local PT Indonesia
- Small: Above IDR 50.000.000 – 500.000.000
- Medium: Above IDR 500.000.000 – 10.000.000.000
- Large: Above IDR 10.000.000.000
Please note that if you want to employ foreigners in a PT, the company size must be at least Medium-sized with a paid-in capital above IDR 1.100.000.000.
To employ foreigners in a Local PT, the company size must be at least Medium with a paid-in capital of above IDR 1.100.000.000.
Document Requirements to Set Up a PT Company in Indonesia
- Minimum 2 Company shareholders with the following identity and contact details:
- For Indonesian Individuals, KTP and NPWP
- For Indonesian Companies, a copy of:
- The Articles of Establishment and the amendments
- Approval from the Ministry of Law and Human Rights
- Domicile Letter
- Tax ID
- Business License
- Company Registration Certificate (TDP/NIB)
- Identity and contact details of Company Directors and Commissioner:
- For Indonesian individuals, KTP, NPWP, email, and phone number.
- For Foreign Individuals, a valid passport, email, and phone number.
- Original Domicile from building management
- Copy of Lease Agreement between the company and building management
Other Popular Business Registration Services in Indonesia
PT PMA Company Registration
Representative Office
Common Questions (related to PT PMDN)
Can foreign investors open a PT PMDN in Indonesia?
A PT PMDN is designed for Indonesian ownership. However, foreign investors can participate through partnerships with local shareholders or consider a Foreign Investment (PT PMA) structure instead, depending on the business sector and ownership requirements.
Is NIB the same as a Business Registration Number?
The Business Identification Number (NIB) is a mandatory registration issued through Indonesia’s Online Single Submission (OSS) system. It functions as your company’s primary license, covering aspects such as business identification, import/export access, and compliance verification.
Which authority handles company registration in Indonesia?
Company registration involves multiple institutions, including the Directorate General of General Legal Administration under the Ministry of Law and Human Rights, as well as OSS for licensing and NIB issuance.
Do I need a specific permit to operate my business?
Yes. Depending on your sector, additional permits or commercial licenses may be required after obtaining your NIB. These ensure your business complies with Indonesian regulations and industry-specific standards.
Can a PT PMDN sponsor a visa for foreign employees?
Yes, but only if the company meets certain requirements. To sponsor a working visa (KITAS), the company must comply with minimum capital thresholds and manpower regulations, particularly for foreign hires.
What are the compliance requirements after registration?
Once established, your company must maintain ongoing compliance, including tax reporting, business activity reporting, and adherence to sector-specific regulations. Regular verification may be required to ensure continued operational legality.
Is a company address required for registration?
Yes. A valid company address is mandatory for registration and licensing purposes. This can be a physical office or a registered virtual office, depending on the business activity and local zoning regulations.
How long does the registration process take?
The timeline varies depending on document readiness and verification processes, but typically ranges from a few days to several weeks, including approval from the Directorate General and issuance of the NIB.
Expand Your Business in Indonesia with Lets Move Indonesia
Want to know more about setting up a business in Indonesia? Then check out our useful guides!
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