Indonesia is one of the most attractive destinations for foreign entrepreneurs. Its economic stability, growing market, and strategic location make it an ideal choice for business. However, before starting your venture, it is important to understand the legal aspects to avoid mistakes. In this article, we will outline the necessary steps and key points to consider when registering a company.

Key business structures for foreigners

Foreigners can register a business in Indonesia in the following forms:

• PT PMA (Penanaman Modal Asing) – a foreign investment company.

  • Minimum capital: $175,000 (IDR 2.5 billion).
  • 100% foreign ownership is allowed in certain sectors of the economy.

• Local PT (Perseroan Terbatas) – requires partnership with local citizens.

  • Suitable for those who want to quickly launch a small business.

• Representative Office (KPPA) – a representative office for market research, without the right to conduct commercial activities.

Steps to register a company

1. Check the permissibility of your business activity
   Ensure that the business sector you have chosen is open to foreign participation. This can be done through the Indonesian Investment Coordinating Board (BKPM).

2. Register the company name
   The name must be unique and comply with legal requirements.

3. Obtain an NIB (Nomor Induk Berusaha)
   This is the main business permit that needs to be obtained through the online platform OSS (Online Single Submission).

4. Create the company’s articles of association
   The Articles must be drafted with the help of a notary and registered with the Ministry of Law and Human Rights.

5. Open a corporate bank account
   This is a mandatory step for all business types.

6. Obtain work visas and permits for employees
   If you plan to hire foreigners, you will need KITAS and IMTA work permits for each employee.

Taxation features

• Corporate Tax: The standard rate is 22%.
• VAT (Value Added Tax): 11% on most goods and services.
• Sector-specific Taxes: Vary depending on the type of business.

Easy Visa can help you navigate tax requirements and avoid penalties.

Common mistakes and how to avoid them

• Incomplete documentation
  This is the most common mistake, which can delay the registration process.

• Incorrect Business structure choice
  If you plan on making long-term investments, choose PT PMA, not a local PT.

• Ignoring local laws
  For example, the requirement to hire Indonesian staff (at least two local employees for every foreign worker).

• Non-compliance with tax obligations
  It’s easier to rely on professionals to avoid penalties.

How Easy Visa simplifies your path

Our services include:

• Consultation on choosing the appropriate business structure.
• Assistance in preparing and submitting documents.
• Support throughout the registration process, opening a bank account, and obtaining all necessary permits.
• Ongoing support throughout the operation of your business.

Easy Visa makes the business registration process in Bali as comfortable and understandable as possible!

Legal company registration in Indonesia requires attention to detail and knowledge of local laws. If you want to avoid mistakes and start your business quickly, entrust the process to professionals. Easy Visa is ready to assist you at every step, ensuring reliability and comfort.

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