Thinking of Expanding to Indonesia? Here’s How to Set Up Your Company the Smart Way

Indonesia has become a hot spot for global investors looking to tap into Southeast Asia’s fast-growing markets. With its strategic location, booming population, and rich resources, it’s easy to see why companies from the U.S., Canada, India, and beyond are eyeing this vibrant country. But before you jump in, it’s important to understand how company registration works—especially for foreigners.

Whether you’re launching a tech startup in Jakarta or opening a representative office in Bali, navigating Indonesia’s regulatory landscape can be a maze. But don’t worry—that’s exactly where a trusted local partner like MAM Corporate Solutions comes in.

Can Foreigners Really Own a Business in Indonesia?

Absolutely. Indonesia welcomes foreign investors through a legal structure known as a PT PMA (Foreign-Owned Limited Liability Company). This setup allows you to own most, or even all, of your business—depending on the sector.

It’s an ideal structure for entrepreneurs and corporations looking for long-term operations in Indonesia.

Which Type of Company Should You Choose?

For foreign investors, there are two main routes:

1. PT PMA (Foreign-Owned Company)
• Allows foreign ownership (partial or full, depending on the industry)
• Comes with access to work permits and operational licenses
• Requires a minimum total investment of USD 700,000
2. Representative Office (KPPA)
• Cannot generate income
• Ideal for market research or establishing a presence
• Faster and easier to set up, but limited in function

Key Things You’ll Need to Get Started

Before you register your business, you’ll need to meet a few core requirements:

• Minimum Investment: USD 700,000
• Paid-Up Capital: USD 175,000
• At Least Two Shareholders
• A Registered Office in a Commercial Zone
• Sector Approval per Indonesia’s Positive Investment List

Certain sectors still limit foreign ownership, so it’s crucial to verify this early on or consult a local expert.

What’s the Registration Process Like?

Here’s a simplified breakdown of how it works:

1. Pick Your Business Activities
   Make sure they’re open to foreign investment.
2. Reserve Your Company Name
   Must be in Bahasa Indonesia and officially approved.
3. Legal Documents & Notary Process
   Includes deed of establishment and articles of association.
4. Approval from the Ministry of Law
   Confirms your company’s legal status.
5. Register Through OSS (Online Single Submission)
   Get your NIB (Business Registration Number) and basic licenses.
6. Apply for Sector-Specific Permits
   Especially important for regulated industries.
7. Open a Business Bank Account
   You’ll need this to deposit your paid-up capital.
8. Apply for Work Permits & Tax ID (NPWP)

All in, the process usually takes 3 to 6 weeks with proper guidance.

Challenges You Might Encounter

Setting up in a foreign country comes with its fair share of hurdles:

• Regulatory updates that aren’t always clear
• Language barriers in official documents
• Finding the right business classification
• Navigating complex tax and reporting systems

Which is why going solo isn’t the best idea—especially when MAM Corporate Solutions can take the entire load off your shoulders.

Why Global Businesses Choose MAM Corporate Solutions

If you’re serious about launching a business in Indonesia, you need a team that knows the system inside and out. MAM Corporate Solutions has earned a strong reputation as the go-to payroll and company registration partner for clients across North America, Europe, and Asia.

Here’s what makes them stand out:

Expert Legal Guidance on Foreign Investment

They break down local laws and ensure your company structure is built to last.

Complete Setup and Back-Office Support

From registration to tax filing and payroll management—MAM handles everything.

Tailored Advice for Every Client

They work with your goals and industry, not a one-size-fits-all template.

Trusted by Hundreds of International Clients

From startups to large enterprises, businesses across the globe trust MAM’s expertise.

Clear Pricing and Realistic Timelines

No hidden fees, no broken promises.

Ongoing Payroll and Compliance Support

Especially valuable for foreign-owned firms that need a reliable payroll outsourcing partner in Indonesia.

Ready to Launch Your Business in Indonesia?

Setting up a company in Indonesia doesn’t have to be overwhelming. When you work with MAM Corporate Solutions, you gain a partner who handles the red tape so you can focus on what really matters—building your business.

Reach out to MAM Corporate Solutions today for a no-obligation consultation and take the first step toward your expansion in Indonesia.