Things You Should Know about Company Establishment Indonesia

July 24, 2018 @ 10:39 am

There are things you should know about company establishment Indonesia. It’s important because you can’t be an instant entrepreneur from establishing something that would be detrimental.

Business is a matter involving many people, capital, and asset. If there is no clear and decisive regulation, it will be bad for the people and the state. In Indonesia, and every other country, there is a binding legal rule to be a guide for every person who wants to establish and manage the business company.

Currently, the government’s policies favour the entrepreneurs from small, medium, to large-capitals. The main goal is to move the wheels of the economy and grow a healthy business. But, first thing first, the establishment of a company must obey some rules and procedures. So, how does it work?


Nothing can be done without any preparation, including for your business. So, what must be prepared?

To establish a company, you must prepare your company’s name (at least, you have 3 options), business field, address, name of shareholders, identity cards, shareholders composition, company’s authorized capital, paid-in capital, directors and commissioners structure, NPWP, photos, and tax ID number.

The Steps

After that, take the following steps:

First, create a company deed. Your company must have a legal entity. So, a deed is the most important thing for it. It contains information about the name of the company, the business, the name of the owners of capital, authorized capital, paid-in capital, and all of the management of the company.

Second, obtain a Certificate of Business Domicile. You can get this from the village office where the company is domiciled. All documents must be prepared including from the sub-district office in the same domicile.

Thirdly, create a Taxpayer ID Number. This is an absolute requirement where you need a copy of the company deed and certificate of domicile. After that, you can proceed with the procedure to the Tax Office to request a copy of the Minister’s Certificate. How long does it take? Generally, it only takes half an hour.

Fourth, get the Decree of Legalization of Company Establishment Certificate from the Department of Law and Human Rights. You need a copy of the company deed and certificate to make this document. It is recommended that you ask all the details to prepare it easily.

Fifth, get the Trading Business License. This is an important document that is part of the process of setting up a company so it can start operating immediately. How to take care of this is very easy in different areas.

Sixth, get the Company Registry. Usually, you can make this after obtaining a Trading Business License. In some areas, you can create a Trading Business License and Company Registry at the same time and place.

Well, those are the things you should know about company establishment in Indonesia. Meanwhile, if you want to invest foreign, or establish a company from abroad, there are some special requirements. All requirements are documents that must be prepared and will be selected by the authorities.

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