7 Steps to Forming a Company in Indonesia

William Simpson
Posted by William Simpson March 6, 2023

Starting a business in Indonesia can be a complex process, but with the right guidance and support, it is possible to successfully incorporate your company in the country. One key aspect of this process is choosing the right Indonesia accounting firm to partner with. 3E Accounting Indonesia is a highly respected and experienced Indonesia accounting firm that can help entrepreneurs navigate the various steps of forming a company in Indonesia.

7 Steps to Forming a Company in Indonesia:

    1. Determine the type of business entity you want to form. Indonesia offers several options for business entities, including a limited liability company (PT), a foreign investment company (PMA), and a cooperative. Each type has its own set of requirements and benefits, so it is important to carefully consider which one is the best fit for your business.
    2. Choose a company name. It is important to choose a unique and memorable name for your company that is not already in use by another business. You can check the availability of a name by searching the company registry database.
    3. Obtain a business license. All businesses in Indonesia must have a business license, which can be obtained from the local government where your business will be located. The process for obtaining a business license varies depending on the type of business and location, so it is important to research the specific requirements for your business.
    4. Register your company with the Ministry of Law and Human Rights. Once you have obtained a business license, the next step is to register your company with the Ministry of Law and Human Rights. This process involves submitting a variety of documents, including articles of association, a deed of establishment, and proof of business license.
    5. Obtain a tax identification number. All businesses in Indonesia must have a tax identification number, which can be obtained from the local tax office. You will need to provide proof of business registration and a valid business license to obtain a tax identification number.
    6. Register for social security and employee benefits. In Indonesia, all businesses are required to register for social security and employee benefits, which can be done through the local social security office. This process involves submitting a variety of documents, including proof of business registration and a valid business license.
    7. Register for value-added tax (VAT). If your business will be selling goods or services in Indonesia, you will need to register for VAT. This process can be done through the local tax office and involves submitting a variety of documents, including proof of business registration and a valid business license.

Indonesia company formation is a multi-step process that requires careful planning and attention to detail. Working with a reputable Indonesia accounting firm like 3E Accounting Indonesia can make the process smoother and more efficient. With their expertise and support, you can successfully incorporate your company in Indonesia and focus on building and growing your business.