There are 8 steps for company registration in Indonesia, which will take approximately 1-2 months for a complete setup.
Step 1: Apply for a company name
Check your desired company name is available – you can use a free company name checker to do so here! If the name is available, you may proceed to apply and register for your desired company name with the Ministry of Law and Human Rights.
NOTE: The approval usually takes 1 working day, and you will receive a unique code that allows you to reserve the name for a maximum of 60 days.
Here are some tips when choosing a company name. Do not select names that:
- Are similar to existing companies
- Are identical or similar to any name of a state, government, or an international agency without official approval
- Does not conform to the purposes/ objectives/ activities of the company
- Consist of a set of numbers, letters, or figures that do not form any words
Step 2: Apply for Deed of Establishment
The Deed of Establishment is to be applied online, together with the submission of the certificate of the bank account and official copy of the bank transfer advice. If the application is successful, you will receive a legalisation on the establishment of the company and can announce the establishment within the following 14 days from the Ministry of Law and Human Rights. All documents are required to be notorised before submission.
Step 3: Apply for the Certificate of Company Domicile
The next step is to apply for the Certificate of Company Domicile where all Indonesian limited liability companies are required to hold.
FUN FACT: This certificate is very important in the application of other documents.
Step 4: Obtain a tax registration number (NPWP)
After getting your Certificate of Company Domicile, you will need to obtain a valid tax ID for financial purposes with the local tax authority.
The documents required for this application include:
- Deed of Establishment
- Identity card of the director
- Statement letter to confirm place of business
You may also be issued with a domicile certification for corporate taxation, but the domicile is not mandatory.
The domicile certificate is issued by the municipality or the building management in the office’s locality. A registration number Value Added Tax (VAT) collector number will also be given.
Step 5: Get your business identification number (NIB)
The NIB is obtained from the Online Single Submission. This is a unique number that is assigned to your company as a form of identification (like an identification card!). You will also get registered by the Badan Penyelenggara Jaminan Sosial (BPJS) Ketenagakerjaan and BPJS Kesehantan as part of the package.
Step 6: Apply for other relevant documents and licenses
Different types of businesses require various business licenses. Depending on the nature of your business, you will need to apply for licenses before you are allowed to start your operations.
Step 7: Obtain work visas
Both the local and foreign employees in your company will require work visas (KITAS) before working in your company. These visas come in the form of single-entry and multiple-entry business visas.
Step 8: Set up corporate bank account
The other activity you should consider when setting up an Indonesian company is opening a corporate bank account. This is where you deposit your paid-up capital after incorporating your company.
At this point, your company is considered registered, and you may operate as a registered business. However, you must still do the following as part of the process:
- You are required to submit the labor report and other required documents at the Ministry of Labor within 30 days.
- Apply social security programs for workers. This program sensitises employees on workplace accidents, security after retirement, security for pension, and death.
- Next, be insured for healthcare and employee welfare from the Badan Penyelenggara Jaminan Sosial (BPJS)
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A company is an association formed for the purpose of doing business.
The companies Act 1956 states that a company must be registered and formed under the Act.
It is a separate legal entity and constitutes directors and shareholders.
Based on the following activities, a company can be classified.https://medium.com/@tecnovaglo/things-you-need-to-know-about-incorporation-of-company-in-india-fb281756bb8d
Hong Kong company incorporation is becoming more popular these days.
After the submission of these documents, the company is inspected by Hong Kong authorities and a business registration certificate will be issued.
The company can then operate as a business, and open accounts with banks and issue company shares to its shareholders.
A company incorporation service can be used to aid the company incorporate through the opening of an offshore account and forming the necessary officers and the board.
Once these tasks are completed, the company can now start operations with its own name.
Some companies offer assistance to form an Limited Liability Company or a Public Company even after a company incorporation process.
