🇮🇩
Indonesia is actively promoting the improvement of the business environment by launching the Online Commercial Licensing System (OSS) and One Window Investment Service (operated by BKPM) to streamline the company registration and licensing process. This article is based on the official information of Indonesia's Investment Coordinating Board (BKPM) and the OSS system, and provides a systematic introduction to the company registration process, regulatory compliance requirements and key considerations.
I. Regulators and online platforms
BKPM (Indonesian Investment Coordinating Board): Responsible for foreign investment approval, licensing guidance and investment policy management.
OSS (Online Single Submission System): As a national unified commercial registration platform, it covers company registration, business license, industry licensing, tax registration and other functions.
II. Selection of business type and risk classification
The OSS categorizes companies into risk categories (low, medium, and high) and adopts different licensing requirements; it applies to two main types of business entities:
PT PMA (Foreign Investment Company Limited): 100% foreign ownership is permitted and applies to long-term commercial operations.
PT (Local Ltd.): Application is limited to Indonesian citizens or PR for local companies.
iii. core conditions for the establishment of the pt pma
| entry (in a dictionary, encyclopedia etc) | request |
|---|---|
| minimum shareholder | At least 1 (natural or legal person) |
| Directors and Supervisors | Must have at least 1 director who is habitually resident in Indonesia |
| registered capital | Generally minimum Rp 500 million (Rp 5,000,000,000), depending on industry KBLI code and risk classification requirements |
| registered address | Must be a physical office address in Indonesia, not a mailbox address |
| OSS account | An account must be registered on the OSS platform as the first step in setting up a company |
IV. Official Registration Process
1️⃣ Preparation of information: Includes company name, registered address, scope of business (KBLI code), shareholder and director information, and capital structure.
2️⃣ OSS declaration: By submitting an application online through the OSS platform, a company can simultaneously apply for the necessary qualifications such as a business license, tax identification number (NPWP), and import identification number (NIK).
3️⃣ Approval and licensing: Upon completion of the automatic approval by the system, the company can obtain a business license and relevant permit documents.
4️⃣ follow-up operation: Completion of notarization of articles of association, production of seals, opening of bank accounts, tax registration, social security registration and other matters.
V. Compliance and annual obligations
License Management: Business licenses need to be updated or renewed in accordance with the regulations, and any changes in the company (e.g. address, directors, business scope, etc.) must be updated in the OSS in a timely manner.
Tax & Accounting: The company is required to comply with Indonesian tax laws, file income tax and VAT returns on time, and submit annual financial statements.
industry regulation: Specific industries require additional special permits for environmental, construction, manufacturing, etc.
VI. Establishment advantages and considerations
✅ Strengths
High market potential and large consumer base
Policies support foreign investment in key industries
OSS system improves approval efficiency and process standardization
⚠️ Notes
Registered capital requirements are higher than other markets in Southeast Asia (typically Rp 500 million onwards)
Different industries have special regulations on foreign shareholding and licenses
Must have a physical office address and eligible resident directors
VII. Our service support
We are available for your investment and company registration in Indonesia:
Investment structuring and industry compliance consulting
OSS account registration and system operation guide
Preparation of registration documents, coordination of notarization of statutes
Full registration filing and subsequent license application
Tax, accounting, social security and annual compliance support
License maintenance and change management during the operational phase of the business
concluding remarks
Indonesian company registration has become highly online and standardized under current policies and systems. A proper understanding of the registration process, industry requirements and compliance obligations is key to a successful landing and sound business operation. For customized project plans, licensing checklists or registration structure proposals, we will provide you with professional and efficient one-stop services.
