This type of business license is considered to be the most popular in Indonesia. Even though the founders of the company should ONLY be Indonesian citizens, there are some situations when a foreign investor can also register a Local company in Indonesia.

What Are The Benefits Of a Local PT Company For Foreigners?

No Restrictions For Business Fields

Some business activities in Indonesia are unavailable to foreigners investors, and some are partially limited. However, a local company is not a subject to this regulation, so setting up a local PT company in this case might be a good solution.

Lower Incorporation Cost

Compared to a PT PMA Company (foreigner investment), the paid-up capital of a local company is much lower. Generally, it ranges from IDR 50,000,000 to over IDR 10,000,000,000 depending on the size of the company.

Size Of Local PT. And Capital Investment

A Local PT Company can be divided into 3 sizes. Each size of Local PT. has a different range of Capital Investment required to start the company.

• Small Company: Capital Investment of IDR 50 mln to 500 Million
• Medium Company: Capital Investment IDR 500 mln to 10 Billion
• Large Company: Capital Investment of IDR 10 mln and above

Steps of the process:

1. Checking the potential of company name at the website of the Ministry of Law and Human Rights
2. Preparation of Association Article by Notary
3. Signing the Article of Association at the Notary
4. Obtain Article of Association and documents attached to it such as ministry approval/SK from ministry of law and human rights, company profile and NPWP from tax office
5. Obtain all documents from OSS system such as, NIB, SPPL and PKKPR/KKPR
6. Additional documents required depending on risk of the business (standard, medium or high risk)

For your convenience, we have made an approximate calculation of opening a base PT  company. Please download our current quotation below.

Some projects require supplementary documentation and permissions. Do not hesitate to contact us for consultations regarding all the peculiarities of the Indonesia-based investing campaign establishment. We will be pleased to assist you in your business endeavors.