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CORPORATE FORMATION & GOVERNANCE

Starting a Business Entity in Indonesia

A step-by-step statutory comparison of corporate vehicles: PT PMA (Foreign Investment), PT Biasa, PT Perorangan (Micro/Small Sole Shareholder), CV, and Representative Offices.

PT PMA (Foreign Direct Investment) 10 - 20 business days (subject to KBLI verification and OSS approvals)

Establishment of a Foreign Direct Investment Company (PT PMA)

Comprehensive legal pathway for foreign entrepreneurs, international enterprises, and multinational corporations to establish a legally compliant 100% or partially foreign-owned Limited Liability Company in Indonesia.

Min. Capital: Minimum total investment of IDR 10 Billion (excluding land and buildi…
Ownership Rules: Foreign equity ownership is permitted up to 100% unless restricted by…
Step-by-Step Procedure Draft Petitions
PT Biasa (Local Limited Liability Company) 5 - 7 business days

Local Limited Liability Company (PT Biasa / PT Domestik)

The standard corporate vehicle for Indonesian citizens and domestic entities looking to operate small, medium, or large scale businesses with limited liability protection.

Min. Capital: No statutory minimum for micro and small scale; mutually agreed by fo…
Ownership Rules: 100% owned by Indonesian individuals or domestic Indonesian legal ent…
Step-by-Step Procedure Draft Petitions
PT Perorangan (Individual Micro/Small Enterprise) 1 - 2 business days (Immediate online registration)

Individual Company (PT Perorangan) for Micro and Small Enterprises

An innovative corporate format introduced by the Job Creation Law (UU Cipta Kerja) allowing a single Indonesian citizen to establish a limited liability legal entity without a notarial deed.

Min. Capital: Maximum capital ceiling of IDR 5 Billion (reserved specifically for m…
Ownership Rules: Strictly 1 (one) Indonesian individual who serves simultaneously as t…
Step-by-Step Procedure Draft Petitions
CV (Commanditaire Vennootschap) 3 - 5 business days

Commanditaire Vennootschap (CV - Limited Partnership)

A traditional non-legal entity partnership consisting of active partners (sekutu aktif) who manage the business with unlimited liability, and silent partners (sekutu pasif) with liability limited to their capital contribution.

Min. Capital: No minimum capital requirement.
Ownership Rules: Strictly Indonesian citizens. Foreigners cannot be partners in a CV.
Step-by-Step Procedure Draft Petitions
KPPA (Foreign Representative Office) 7 - 14 business days

Foreign Company Representative Office (KPPA / KP3A)

An ideal setup for foreign parent corporations aiming to conduct market research, business development, liaison, and promotional activities in Indonesia without engaging in direct commercial sales or billing.

Min. Capital: No paid-up capital requirement; parent corporation guarantees operati…
Ownership Rules: 100% subsidiary branch office of foreign parent company. Chief Repres…
Step-by-Step Procedure Draft Petitions

Top 5 Tips for Corporate Founders in Indonesia

1. Check Zoning Compliance (KKPR / Domicile) First Ensure your office or lease is located within an approved commercial zone (zona perkantoran/perdagangan). Residential zones are strictly disqualified from obtaining NIB operational permits in major provinces like DKI Jakarta and Bali.
2. Strictly Avoid Nominee Arrangements Article 33 of Law No. 25/2007 (Investment Law) invalidates any contract granting shares to foreigners via Indonesian nominee individuals. Nominee agreements are void by law, leaving the foreign party without legal recourse.
3. Select Correct 5-Digit KBLI Codes The Indonesian Standard Industrial Classification (KBLI 2020) dictates your exact licensing tier, risk classification, and foreign capital requirements under OSS RBA. Multiple KBLI codes may require cumulative IDR 10B investments for a PT PMA.
4. Comply with LKPM Quarterly Reporting Medium and large enterprises (including all PT PMAs) must file the Investment Activity Report (LKPM) quarterly via OSS. Persistent omission triggers automatic license revocation.