Foreign-owned company setup
We set up a PT PMA - a foreign-owned company for trade, services, IT and operating in the Indonesian market. We prepare the Deed of Establishment and Articles of Association, reserve the company name, and assist with a registered address, registration through the OSS system and issuance of the NIB business licence. We arrange the NPWP tax number and support opening a corporate bank account with a local bank. Most of the preparation is handled remotely.
A quick overview of the corporate, tax and annual requirements of the Indonesian jurisdiction for foreign investors.
A foreign-owned limited liability company, the Indonesian equivalent of an LLC.
Full foreign ownership in sectors open under the Positive Investment List. Some sectors are subject to ownership caps.
At least one director and one commissioner, any nationality. A local registered address is required, and a managing foreign director needs a KITAS permit.
Standard corporate income tax rate. VAT (PPN) is charged at an effective 11% once registered as a taxable enterprise.
Paid-up capital of around USD 150,000, with an investment plan from IDR 10 billion per business activity. Capital is deposited after the bank account is opened.
Annual financial and tax reporting, quarterly LKPM filing through the OSS system, and an audit for companies above the statutory thresholds.
The final cost depends on the chosen package, sector, capital size and any additional tasks in the project.
Information current as of July 2026.
From basic PT PMA registration to a full launch with a business licence, investor stay permit and a corporate bank account.
PT PMA registration only
With licence and address
With investor stay permit and account
Important: banking support does not guarantee that an account will be opened. The final decision rests with the bank after reviewing the company and beneficiary profile.
Indonesia suits projects that need access to the largest market in Southeast Asia, a local legal entity to work with domestic clients, and a presence in the ASEAN region.
A company for trading agents, import and export. Run cross-border operations through a local legal entity, including intermediary trade without necessarily importing goods into Indonesia.
A local legal entity to work with Indonesian clients, sign contracts and hire staff on the ground.
Development, SaaS and digital services with a local legal entity, corporate account and domestic invoicing.
Sales on Indonesian and regional marketplaces with a local legal entity and a corporate account in rupiah.
Direct access to a domestic market of over 270 million people and to regional supply chains across Asia.
Over 70 double taxation agreements covering cross-border operations.
Many sectors allow full foreign ownership with no local partner under the Positive Investment List.
An official corporate account and settlements in Indonesian rupiah with local counterparties.
To register a PT PMA you will need shareholder documents, at least two shareholders, an investment plan and a unique three-word company name. Documents issued abroad must be notarised and apostilled or consular-legalised. Most of the preparation is handled remotely.
The set of documents depends on the sector, KBLI codes and ownership structure. Documents from non-residents must be notarised and apostilled or legalised in the country of origin.
The company may be 100% owned by a foreign founder - an individual or a legal entity - in sectors open under the Positive Investment List. Some sectors have ownership caps or require a local partner.
At least two shareholders of any nationality and at least one director. A foreign director managing the company from Indonesia obtains a KITAS permit.
A mandatory role under Indonesian law. At least one commissioner, who oversees the director and does not take part in day-to-day management. Any nationality.
A registered address in Indonesia that matches the business activity and zoning. A number of sectors require a physical office, and a virtual address is not always accepted.
Minimum paid-up capital of IDR 2.5 billion, with an investment plan from IDR 10 billion per business activity. Capital is deposited after the bank account is opened and must be retained within the company during the first year.
Indonesia taxes companies on a residence basis, with a standard corporate income tax rate. The overall burden depends on turnover, sector, incentive regimes and timely filing through the Coretax system.
Corporate income tax
22%
standard rate; a partial reduction is available for turnover up to IDR 50 billion
Tax basis
Residence
the company is taxed on its worldwide income
Annual return
30 April
corporate income tax return filed for the previous year
LKPM report
quarterly
investment activity report filed through the OSS system
The standard corporate income tax rate in Indonesia is twenty-two per cent for most companies.
A resident company is taxed on its worldwide income, not only on Indonesian-sourced income. A PT PMA is a resident from the date of incorporation.
VAT (PPN) is charged at an effective eleven per cent. Registration as a taxable enterprise (PKP) is required once turnover exceeds IDR 4.8 billion a year.
Dividends, interest and royalties paid to non-residents are subject to withholding tax, with rates reduced under double taxation agreements.
Keep accounts under Indonesian PSAK standards
Prepare financial statements and, above the thresholds, undergo an audit
File monthly and annual tax returns through the Coretax system
File the annual corporate income tax return by 30 April of the following year
Submit the quarterly LKPM report through the OSS system
File the annual corporate report and shareholder resolution through AHU Online
Meet VAT and withholding tax obligations
The 0.5% turnover-based rate for micro-businesses does not apply to a PT PMA. Foreign-owned companies have additional withholding obligations on dividends, interest and royalties.
Information current as of July 2026
The banking route depends on the company's activity, payment geography and beneficiary profile. Depending on the goal, we select Indonesian banks for settlements in rupiah and solutions for accepting payments and working with marketplaces.
For day-to-day operations and settlements in rupiah within the country. We select a bank to match the company profile, with options including BCA, Bank Mandiri, BNI and CIMB Niaga.
For retail sales and working with platforms. Accept payments via QRIS and e-wallets, and for integration — the Midtrans, Xendit and DOKU payment gateways.
We prepare the company profile before submission, so that the bank's requirements and currency-control checks are addressed in advance.
We assess the activity, payment geography and bank requirements before submission begins.
We support the project from the initial review through to receiving the corporate documents and completing any agreed additional tasks. We act as a corporate agent under Indonesian requirements.
We review the ownership structure, shareholders, KBLI codes and source documents, and check the client due diligence requirements before work begins.
We agree the company name, prepare the Deed of Establishment and Articles of Association, and handle the filing with the Ministry of Law and Human Rights of Indonesia.
We help appoint the director and commissioner, and arrange a registered address in line with the chosen package and business activity.
We help obtain the NIB business licence through the OSS system, arrange the tax number and register the company for tax.
The process covers an initial review, name reservation, a notarised Deed of Establishment, ratification of the legal entity and issuance of the NIB business licence. Most stages are handled remotely by power of attorney.
Indonesia is not the answer to every task. In some cases it is more honest to consider another jurisdiction, and we will help you find the right one.
A PT PMA requires paid-up capital of IDR 2.5 billion and an investment plan from IDR 10 billion per business activity, and the capital is retained within the company during the first year. For a small start, other jurisdictions are simpler.
Worth considering: Hong Kong, Singapore, BVI
A number of sectors require a physical address in Indonesia, and a foreign director managing the company usually needs a KITAS permit. A virtual address is not always accepted.
Worth considering: Hong Kong, Singapore, UAE
Indonesia involves accounting under PSAK standards, a quarterly LKPM report and regular tax reporting. For projects with minimal activity, simpler structures are a better fit.
Worth considering: BVI, Seychelles, Belize
PT PMA registration involves a notarised deed, ratification of the legal entity and issuance of the NIB licence, and the process takes several weeks. For a fast launch, other jurisdictions are simpler.
Worth considering: Hong Kong, Singapore, Malaysia
Not sure whether Indonesia is right for your project? In a consultation we will assess the task honestly and suggest the optimal jurisdiction, even if it turns out not to be Indonesia.
If Indonesia is not a full fit on structure, capital size or ongoing costs, compare the alternatives across the key parameters.
| Jurisdiction | Best for | Tax | Upkeep | Banking |
|---|---|---|---|---|
 Hong Kong | Best for International trade, IT, holdings, working with Asia. | Tax 8.25% / 16.5%, territorial basis. | Upkeep Moderate, annual audit. | Banking Banks and fintech, but strict compliance. |
 Singapore | Best for Holdings, IT, fintech, Asian headquarters. | Tax 17% rate, start-up incentives. | Upkeep Moderate, transparent requirements. | Banking Banks and fintech, strict compliance. |
 Thailand | Best for Local business, services, growing market. | Tax Standard rate of 20%. | Upkeep Moderate, local requirements. | Banking Local banks, presence required. |
 Malaysia | Best for Regional business, trade, services. | Tax Standard rate of 24%. | Upkeep Moderate cost. | Banking Regional banks, moderate requirements. |
We will help you compare jurisdictions on tax, banking, annual costs and structural requirements for your specific case.
Every project is unique - we tailor the solution to the client's specific goal, jurisdiction and business model.
Indonesia The client provided consulting services to clients in Indonesia and wanted a local legal entity for contracts, hiring staff and settlements in rupiah.
Solution We registered a PT PMA, arranged the NIB licence and tax number, registered the company for tax and opened a corporate account for settlements.
Finextwin helped us launch a company in Indonesia for our services. We work with clients directly and handle settlements in rupiah - it has become noticeably easier.
Indonesia The entrepreneur sold products through Indonesian platforms and wanted a local legal entity to accept payments and work with marketplaces.
Solution We registered a PT PMA, set up payment acceptance via QRIS and e-wallets, and arranged a corporate account in rupiah.
Finextwin helped us reach Indonesian platforms with a local company. We now accept payments within the country and handle settlements with ease.
Indonesia The client ran cross-border trade and wanted a local company in Indonesia to act as a trading agent, for import and export with direct settlements with counterparties.
Solution We registered a PT PMA with trading KBLI codes, arranged the NIB business licence and opened a corporate account for cross-border operations.
Finextwin set up a company for our cross-border trade. We run operations through a local entity and settle directly, with no unnecessary intermediaries.
If you cannot find the answer to your question, leave a request and we will review your situation personally.
Get a consultationWith a complete set of documents, PT PMA registration for low-risk activities takes around two to four weeks: name reservation, the notarised Deed of Establishment, ratification of the legal entity with the Ministry of Law and Human Rights, the NPWP tax number and the NIB business licence through the OSS system. Regulated sectors that require additional sector permits take longer. Opening a corporate bank account is handled separately and is not included in the registration timeline.
Yes, most of the preparation is handled remotely by power of attorney - gathering documents, reserving the company name, preparing the Deed of Establishment and filing through the OSS system. Personal presence may be required at certain stages, most often when opening a bank account, as banks carry out their own client due diligence.
There is no nationality requirement for the director - the director may be a foreigner. However, a director managing the company from Indonesia usually needs a KITAS stay permit. A PT PMA must also have at least one commissioner, who oversees the director and is a separate person. To open an account, most banks require a resident director.
The minimum paid-up capital for a PT PMA is IDR 2.5 billion, around USD 150,000. In addition, the investment plan must exceed IDR 10 billion per business activity, excluding land and buildings. Capital is not deposited upfront: a capital statement is signed at the registration stage, and the actual deposit is made after the corporate bank account is opened. The capital is retained within the company during the first year.
The standard corporate income tax rate is 22 per cent. VAT (PPN) is charged at an effective 11 per cent, and registration as a taxable enterprise (PKP) is required once turnover exceeds IDR 4.8 billion a year. Dividends, interest and royalties paid to non-residents are subject to withholding tax, with rates reduced under double taxation agreements. The 0.5 per cent turnover-based rate for micro-businesses does not apply to a PT PMA.
A corporate account with an Indonesian bank is needed to deposit the paid-up capital and for day-to-day settlements in rupiah. Options include BCA, Bank Mandiri, BNI and CIMB Niaga. To accept customer payments, QRIS, e-wallets and payment gateways are added on top. Banks review the company and beneficiary profile, so the profile should be prepared in advance.
The company keeps accounts under PSAK standards, files monthly and annual tax returns through the Coretax system, and files the annual corporate income tax return by 30 April of the following year. Separately, it submits the quarterly LKPM investment activity report through the OSS system and the annual corporate report through AHU Online. An audit is mandatory for companies above the statutory thresholds and for regulated sectors.
Many sectors allow 100 per cent foreign ownership under the Positive Investment List. Some sectors have ownership caps or require a local partner, and a few are closed to foreign investors. Sector availability and requirements depend on the KBLI codes, so the business classification is checked before registration.
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