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how to set up company in Indonesia

How to Set Up Company in Indonesia?

Since the beginning of 2016, the Government of Indonesia continues its efforts to simplify the procedure of how to set up company in Indonesia. This is because the number of entrepreneurs in Indonesia is still very small compared to neighboring countries, Singapore. Establishing a new business is considered to provide added value as it will open more jobs and drive the economy. One of the things that the Government is doing is to facilitate the establishment procedure of Limited Liability Company (PT).

In the Jokowi XII Policy Package, set time and cost standards to manage business documents faster and cheaper. The cost of ordering and naming the Company Name is only 200,000 rupiah with a processing time of just 2 business days.

The cost of making a business establishment certificate in a Notary Office is only 1 million rupiah with only 1 working day. The cost of legalization of the business establishment certificate in the Office of the Ministry of Justice and Human Rights is also only a million within 1 working day.

Pruning this procedure also takes 10 days from the beginning of 47 days. And the necessary permits are only three, namely the Trade Business License and Corporate Registration Certificate issued simultaneously and the deed of establishment. Whereas previously it required five licenses, Trading Business License, Company Registration Certificate, deed of establishment, business place permit, and disturbance permit.

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The total capital and costs required, both paid up capital and notary fees and licenses, are not up to 20 million for small PT.

Preparation of Company Establishment Data

To establish a company, here are the data you need to prepare:

  1. Company Name Option (Minimum 3)
  2. Field of Business
  3. Company Domicile
  4. Name of Shareholder & Personal Identity Card
  5. Shareholder Composition
  6. Authorized Capital of the Company (Minimum Rp51,000,000)
  7. Paid-in Capital (Minimum Rp51,000,000)
  8. Composition of Directors and Commissioners
  9. Identity Card of the Director and Commissioner
  10. Tax Registration Number Card
  11. Pas photo 3×4 2 sheets

6 Steps of Company Establishment

Here are 6 main steps in how to set up company in Indonesia;

  • First, Create a Company Deed
    Because the company is a legal entity it is absolutely necessary to make your company deed. Usually this deed contains information about the name of the company, what kind of move, the name of the owners of capital, authorized capital, paid-up capital, corporate management such as who the president director, directors, and commissioners.
  • Second, Obtain a Certificate of Business Domicile
    This you get from the village office or the village head office where your company is domiciled. Based on this letter, the head of village issued the same letter.
    To get a certificate of domicile, you need a copy of your company deed. In addition, the village officers sometimes or often also ask whether the place of business is rented or own property. When hired, they ask for a copy of the lease agreement. If the property itself, they ask for a copy of land certificate. Sometimes, there is also a copy of the payment of the land taxes – whether it is paid off or not.
    Usually, taking care of domicile letter is charge of administration fee. These administrative costs vary from one village to another,
  • Third, Take Care of the Taxpayer Tax Number of the Company
    To establish a company, the taxpayer’s corporate tax number is absolute. To obtain a Taxpayer Tax Number, you need a copy of the company deed and certificate of domicile.
    There is a Tax Service Office in a certain region request copy of Ministerial Decree on Ratification of Company Establishment Deed. There is also a request only deed and sk domicile. Usually the Taxpayer Tax Number is only 1 / 2hours. When you enter the file in the morning to the tax office, that same morning you can get a Taxpayer Tax Number.
  • Fourth, Get the Decree of Ratification of Company Establishment Certificate from the Department of Law and Human Rights. To obtain this, a copy of the company’s certificate and Certificate of Domicile are required.
  • Fifth, Take Care of Trading Business License
    The Trading Business License is part of the process of establishing PT in order for your company to operate. Taking care of the Trading Business License is relatively the same in various places.
  • Sixth, Take Care of Company Registration
    Company Registration is a part of company establishment process. Usually this is taken care of after you get the Trade Business License In certain local government, you can take care of Trading Business License and Company Registration License at the same time. The requirements are relatively the same for different regions.
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That is the main steps of how to set up company in Indonesia in general. As a good citizen, you must fulfill it. It is better not to leave this affair to the brokers or irresponsible parties. If you think you cannot afford to take care of it yourself, you can seek help from a trusted legal institution.

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