Corporate | Local Incorporation (PT PMA)

Prudenta Business Advisory and our allied notary offices regularly assist local and foreign investors with establishment of business entities. The most common form of corporate entity established to carry out business activities under the laws of Indonesia is the limited liability company, also called Perseroan Terbatas (PT).

A PT may be wholly owned by local or foreign shareholders, based on the business activity and the provisions in the Negative List issued by the Indonesian government from time to time. If partially or wholly owned by foreign shareholders, the company is referred to as a foreign investment PT, or PT PMA (Penanaman Modal Asing).

The minimum required authorized capital is USD 1 million, a minimum of 25% of which must be paid up at the time of establishment.


  • Principal License from the Investment Coordinating Board (Badan Koordinasi Penanaman Modal, BKPM), for PT PMA
  • Deed of Establishment
  • Decree of the Minister of Law and Human Rights
  • Domicile Letter (SKDP)
  • Tax Identification Number and Registration Letter (NPWP)
  • Business License (SIUP), for locally owned PT
  • Business Registration (TDP)

Estimated time

  • 7-4 working days, for locally owned PT
  • 3 months, for PT PMA

Required documents

  1. Company name and scope of business
  2. Shareholding structure (min. 2 shareholders, individual or corporate)
  3. Articles of Association of the shareholders, if corporate
  4. ID of shareholders, if individuals
  5. ID of director(s) and commissioner(s)
  6. NPWP of local shareholder(s), director(s) and commissioner(s)
  7. Address and fixed line telephone number
  8. Proof of ownership or lease for business location, land and building tax receipt (PBB)

Prevailing regulation(s)
Law No. 40 Year 2007 regarding Limited Liability Companies
Law No. 25 Year 2007 regarding Capital Investment
Law No. 39 Year 2014 regarding Negative Investment List


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