Limited company Indonesia Company registration in Indonesia

Limited liability companies (abbreviated as PT or perusahaan terbatas in Indonesia) can be owned by both local and foreign shareholders (often referred to as PT PMA or a limited liability company with foreign ownership).

Shareholders of a company in Indonesia

Company's liability is limited to the committed share capital of the company. Indonesia classifies companies based on the size of the capital, only large companies can have foreign shareholders. Large companies have a minimum paid-up capital requirement of Rp. 2,5 billion (~200,000 USD).

The following shareholders are counted as local shareholders:

  • Individual shareholders with Indonesian citizenship
  • Corporate shareholders that are registered in Indonesia and don't have foreign shareholders

As long as the company has sufficient paid-up capital and operates in an industry that doesn't restrict foreign ownership, the company can also have the following types of foreign shareholders:

  • Individual shareholders of other nationalities
  • Corporate shareholders registered in Indonesia with foreign ownership (PT PMA)
  • Corporate shareholders registered outside of Indonesia

A company is required to have at least two shareholders.

Business classification (KBLI)

Different business classifications have different foreign ownership and licensing requirements. It is important to choose the business classification that accurately represents the planned business activities in Indonesia.

Depending on the regulations of the exact business classification, companies are categorised as:

  • No restrictions - up to 100% foreign ownership is allowed
  • Allowed with limitations - a certain percentage of the company must be owned by a local shareholder
  • Closed to foreign investment but open to local investment
  • Closed to both local and foreign investment

Corporate structure

Indonesian companies have the following structure:

  • At least one director. Directors are in charge of the daily operations of the company.
  • At least one commissioner. Commissioners oversee the work of directors on behalf of the shareholders.

Directors and commissioners can but don't have to be shareholders of the company. One person cannot be both a director and a commissioner.

Get started with company registration

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