Company Incorporation

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We assist clients in incorporating business and legal entities in Indonesia, ranging from obtaining investment permits, preparing and executing deed of Incorporation to obtaining general/basic permits i.e. Taxpayer Registration Number (Nomor Pokok Wajib Pajak. “NPWP”), Domicile Certificate (Surat Keterangan Domisili Perusahaan, “SKDP”), Business Identification Number (Nomor Induk Berusaha, “NIB”), Investment permit and other general permits required by prevailing regulations in Indonesia.

Business and legal entities can be in the form of limited liability companies, representative offices, limited partnerships, cooperatives and many more. The determination of the form of business entities depends on the business activities to be carried out by the clients. By good knowledge and comprehensive legal understandings, we provide our clients with the best solutions and advice to establish a suitable business entity to carry out business in Indonesia.

Are there any differences between foreign investment companies (PT Penanaman Modal Asing, “PT PMA”) and local companies?

The differences between PT PMA and local companies are the minimum total investment, the availability of business restrictions and etc.

Are there any restrictions for foreign companies to carry out business in Indonesia?

There are restrictions for foreign companies to carry out business in Indonesia as stipulated in Presidential Regulation No. 44 of 2016 on List of Business Fields Closed to Investment and Business Fields Open, with Condition, to Investment (“PR 44/16”).

How much is the minimum investment required for PT PMA?

The minimum investment for PMA is IDR2,500,000,000.00

What is representative office?

Representative Office of Foreign Company (Kantor Perwakilan Perusahaan Asing, “KPPA”), based on Article 1 (25) of Regulation of the Investment Coordinating Board of the Republic of Indonesia No. 6 of 2018, is an office led by an Indonesian citizen or a foreign national appointed by a foreign company or a foreign joint venture overseas as its representative in Indonesia.

What are the differences between representative office and PMA?

Representative office is not legally allowed to carry out business activities and obtain income from sources in Indonesia. Meanwhile, PMA is allowed to carry out business activities and obtain income from Indonesia. The KPPA activities are limited to: (1) being supervisors, liaisons, and coordinators, and taking care of the interests of the company or its affiliated companies; (2) preparing the Incorporation and development of enterprises of foreign companies in Indonesia and/or in other countries.

What is reporting obligation for PT PMA in Indonesia?

PMA must submit an Investment Activity Report (Laporan Kegiatan Penananaman Modal, “LKPM”) through the Service Information System and Electronic Investment Licence (Sistem Pelayanan Informasi dan Perizinan Secara Elektronik, “SPIPISE”).

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