Establishing a company in Indonesia is an important first step for every entrepreneur who wants to develop his business. This process not only involves legal registration but also various documents and requirements that must be met in order for the company to operate legally. In this article, we will discuss easy way to set up a company, including process, document, And the requirements.
1. Why is Company Establishment Important?
Formally establishing a company provides various benefits, such as legal protection, credibility in the eyes of customers and business partners, and the ability to access various banking facilities. In addition, by having a registered legal entity, companies can also comply with applicable tax regulations, avoid fines, and operate legally in the Indonesian market.
2. Steps to Establish a Company
Following are the steps you need to take to set up a company in Indonesia:
A. Determine the type of company
Before starting the registration process, you must determine the type of business entity you want to establish. Common options are PT (Limited Liability Company), which consists of Local PT (for Indonesian citizens) or PT PMA (Foreign Investment) for companies with foreign investors. Choose a form that suits your business needs and goals.
B. Making a Deed of Establishment
After determining the type of company, the next step is to create it Establishment Act which must be prepared by a notary. This deed of establishment contains important information about the company, such as name, address, shareholder structure and business activities. This deed will then be submitted to the Ministry of Law and Human Rights to obtain approval as a legal entity.
C. Register the Company Name
Choosing a company name is also an important stage in founding. The company name must be unique and not yet used by another company registered in Indonesia. You need to register your company name through the online system at Ministry of Law and Human Rights (Ministry of Law and Human Rights). The approved name will be used for company identity.
D. Obtain a Business Identification Number (NIB)
Business Identification Number (NIB) is an identification number given by the government to every registered business. NIB also functions as a valid business license. You can apply for NIB via Online Single Submission (OSS), which allows you to manage multiple permits digitally on one platform. NIB is needed for administrative purposes and as company identification in the government system.
E. Obtain a Business Permit and Environmental Permit
After obtaining an NIB, your company must obtain a business permit appropriate to its type of business. For example, if you open a restaurant, you need to apply for a restaurant permit or dining permit. Apart from that, some types of businesses also require environmental permits related to the environmental impact of the business.
F. Register the Company for Taxes
After your company is legally registered, the next step is to register your company for a company tax identification number (NPWP). NPWP is identification used for tax obligations. Registration for a company’s NPWP can be done at the nearest tax office or through the available online system.
G. Open a Company Bank Account
For business transactions, your company needs a bank account in the company’s name. A company bank account will make financial management easier and ensure financial transparency. Prepare the required documents such as deed of establishment, NIB, and NPWP to open this account.
3. Documents Required for Company Establishment
The following are some documents that are usually required when setting up a company in Indonesia:
- Deed of Company Establishment Ratified by Notary
- KTP of Shareholders and Directors
- NPWP of Shareholders and Directors
- Company Domicile Certificate
- Registered Certificate (SKT) from the Trade Service
- Business Permit and Environmental Permit Documents (depending on the type of business)
These documents will be processed by notaries and relevant agencies to ensure that your company meets the requirements set by Indonesian law.
4. Company Establishment Requirements
To set up a company, there are several requirements that must be met:
- Authorized capital: Every company has authorized capital which must be paid in accordance with legal provisions. This basic capital serves to show seriousness in running the business. For PT, the minimum basic capital is IDR 50,000,000 for Local PT and IDR 10,000,000 for PT PMA.
- Shareholders: The company must have a minimum of two shareholders, which can consist of individuals or legal entities. This shareholder structure needs to be explained in Establishment Act.
- Director: The company must have a director who is responsible for the company’s operations. Directors can come from shareholders or other parties who have the qualifications to manage the company.
- Company’s address: Every company must have an official address that is used for administrative activities and communication with the authorities.
5. Advantages and Challenges of Establishing a Company
A. Profit
- Legal Protection: Having a legal entity provides protection for business owners in terms of financial and operational obligations.
- Market Confidence: Legally registered companies provide higher confidence to customers and business partners.
- Access to Financing: Companies with legal status can more easily access loans or investments from banks and other financial institutions.
B. Challenge
- Complicated Administrative Process: Establishing a company requires processing various documents and requirements which can take time.
- Considerable Initial Costs: There are costs that must be paid for notaries, business permits, and other costs related to company registration.
- Regulatory Compliance: Once the company is established, you must also comply with tax regulations and other applicable regulations, which can sometimes change.
6. Tips to Make Company Establishment Easier
- Consult with an Experienced Notary: Finding an experienced notary will help speed up the incorporation process and ensure that all documents and requirements are met correctly.
- Use OSS Services: Take advantage of the service Online Single Submission (OSS) to process permits and company registration efficiently without having to visit many agencies.
- Pay attention to company finances: Immediately set up a good accounting system to manage the company’s finances after it is established.
7. Conclusion
Setting up a company in Indonesia may seem complicated at first, but with the right understanding of processes, documents and requirements, you can manage and overcome existing challenges. This process requires time and costs, but the benefits obtained, such as legal protection, consumer confidence, And access to banking facilities, very big. With the right steps, setting up your company will be easier and run smoothly.
