Company Establishment & Licensing

OVERVIEW

End-to-end corporate setup and licensing solutions designed to help local and foreign entrepreneurs establish, structure, and expand their business entities in Indonesia with full legal compliance.

Foreign-Owned Company (PT PMA)

Complete incorporation services for foreign investors seeking to establish a legal entity in Indonesia, covering foreign ownership structuring, capital compliance, and full corporate setup.

Indonesian-Owned Company (PT PMDN)

Establishment services for local business entities, tailored for domestic entrepreneurs to secure official corporate status, liability protection, and access to local market opportunities.

Limited Partnership (CV)

Simplified business setup for micro, small, and medium enterprises (MSMEs) or partnerships, offering a faster and cost-effective legal framework for domestic operations.

Company Registration

Handling of mandatory corporate administrative procedures, including Deed of Establishment, Ministry of Law approval (SK Kemenkumham), Tax ID (NPWP), and Single Business Number (NIB).

Business Activity Classification (KBLI)

Strategic mapping and consultation on Indonesia’s Standard Industrial Classification (KBLI) to ensure your business lines align accurately with current regulations and licensing requirements.

Business Licensing

End-to-end processing of essential operational permits, sector-specific licenses, and environmental/standard certifications required to legally run business activities.

Business License Amendments

Services for updating, adding, or adjusting existing operational licenses and KBLI classifications as your business expands its operations or pivots its service offerings.

Corporate Amendments

Official legal updates to company structure, including changes in board of directors/commissioners, shareholding compositions, paid-up capital, business address, or company name.

Registered Office Support

Provision of compliant business address solutions—including virtual and physical office spaces—to satisfy statutory domicile requirements for company registration and licensing.

What Does It Allow You to Do?

Legally register and operate a business entity in Indonesia

Open corporate bank accounts under the company's name

Sponsor visas/work permits for foreign directors or employees

Obtain sector-specific operating licenses (e.g., F&B, construction, tourism, trading)

Sign contracts, own property/leases, and issue invoices as a legal entity

Access government business registration systems (OSS/NIB)

What’s Included

When you engage our company establishment service, we assist you with the preparation and registration of:

Deed of Establishment

Ministry of Law and Human Rights Approval

NPWP (Tax Identification Number)

NIB (Business Identification Number)

KKPR (Spatial Planning Compliance)

Coretax Account

OSS Account

Company Stamp

Process

Structuring Consultation

Determine entity type, ownership structure, and business classification

Legal Drafting & Registration

Notarial deed, Ministry of Law approval, and NIB/OSS registration

Tax & Compliance Setup

NPWP registration, tax ID activation, and mandatory reporting setup

Licensing & Operational Readiness

Secure sector-specific licenses and finalize company activation

Important Things to Know

Certain business sectors have foreign ownership restrictions or require local partnership
Minimum capital requirements differ significantly between local (PT) and foreign-owned (PT PMA) entities
A company must remain compliant with ongoing reporting (LKPM, tax filings) after establishment — this is not a one-time process
Licensing can be sector-specific; some businesses require multiple permits beyond the basic NIB
Directors/shareholders are legally responsible for the company’s compliance status

Commons Questions

What's the difference between a PT PMDN and a PT PMA?
What is a PT?

A PT (Perseroan Terbatas) is an Indonesian limited liability company. A PT can be established with Indonesian investment and is commonly referred to as a PT PMDN (Penanaman Modal Dalam Negeri) when the investment comes from domestic investors.

A PT PMDN is generally suitable for businesses that are owned by Indonesian individuals or Indonesian companies.
What is a PT PMA?

PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company established in Indonesia with foreign investment.

A PT PMA is the common corporate structure used by foreign individuals or foreign companies that want to conduct business and invest directly in Indonesia.

Depending on the business sector, foreign ownership may be permitted fully or may be subject to specific requirements. Therefore, the applicable KBLI (business classification) and foreign ownership restrictions should be checked before establishing the company.
PT PMDN vs. PT PMA: Key Differences
1. PT PMDN (Penanaman Modal Dalam Negeri)

Investasi: Investasi dalam negeri (Domestic investment).

Kepemilikan: Seluruh pemegang saham berasal dari Indonesia (Indonesian shareholders).

Kepemilikan Asing: Tidak berlaku untuk struktur investasi asing (Not applicable).

Izin Usaha: Berdasarkan kegiatan usaha dan tingkat risiko perusahaan.

Peruntukan: Cocok untuk bisnis yang dimiliki sepenuhnya oleh warga negara / badan usaha Indonesia.

2. PT PMA (Penanaman Modal Asing)

Investasi: Investasi asing (Foreign investment).

Kepemilikan: Pemegang saham asing, sesuai dengan ketentuan peraturan yang berlaku (Foreign shareholders).

Kepemilikan Asing: Tergantung pada sektor bisnis dan batasan/restriksi yang berlaku (Negative List / Positive List).

Izin Usaha: Berdasarkan kegiatan usaha, tingkat risiko, serta persyaratan khusus penanaman modal asing.

Peruntukan: Cocok untuk perorangan asing atau perusahaan luar negeri yang ingin berinvestasi di Indonesia.

Both structures are subject to Indonesia’s company and business licensing requirements. Business licensing is currently administered through the OSS (Online Single Submission) system, with requirements determined in part by the business activity and its risk level.
Can a Foreign Investor Establish a PT?

Yes. Foreign investors can establish a PT PMA in Indonesia, provided that the proposed business activity and ownership structure comply with the applicable regulations.

This means that choosing the right KBLI, ownership structure, capital arrangement, and business licensing requirements is important before incorporating the company.

For foreign investors, the process may involve more than simply registering a company. The company structure should also be aligned with the investor’s intended business activities and long-term plans in Indonesia.
Which One Is Right for You?

The answer depends primarily on who will own the company and what business the company will conduct.

If the company is Indonesian-owned, a PT PMDN may be appropriate.

If you are a foreign individual or foreign company planning to invest and operate a business in Indonesia, a PT PMA may be the appropriate structure.

Before proceeding, it is important to check the relevant KBLI, foreign ownership requirements, investment requirements, and licensing obligations.
Need Help Setting Up Your Company in Indonesia?
At PT XIANXING, we assist foreign investors and businesses with company establishment and licensing in Indonesia, including:

PT PMA & PT PMDN establishment

Business activity & KBLI review

NIB & OSS registration

Business licensing

Company documentation

Related compliance support
Not sure whether you need a PT or PT PMA?

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