Guide to Company Registration in Indonesia

The Indonesia company registration process is easier than it used to be, but it is still layered. The government’s OSS (Online Single Submission) portal centralizes licensing, yet approvals, sector rules, and manpower laws can slow you down.

This guide walks you through the process of company registration in Indonesia. Understanding why the market is worth it, how to register a business and secure a Business Registration Number (NIB), what to know about employment compliance, and how using an Employer of Record (EOR) like Omni can simplify your company growth.

Why Indonesia for Your Business

Indonesia goes beyond just another spot on the map; it’s where scale meets growth. If you’re looking at Southeast Asia, here’s why the Indonesia company registration deserves attention:

• SEA’s largest market with digital momentum: Indonesia is home to more than 280 million people and a fast-growing internet economy already on track to break the USD 130 billion mark. Few other markets in the region offer that scale and pace in one place.
• A consumer base and startup scene that keeps expanding: A rising middle class spends more each year, from daily essentials to digital services. Jakarta and other hubs are filled with founders and investors, and the government sweetens the ground with risk-based licensing, special economic zones, and long tax breaks.
• Simpler routes to set up: The OSS online system now pulls Indonesia company registration and licensing into a single portal, cutting out much of the old paperwork and wait times.
• Tax and workforce edge: The corporate income tax stands at 22 percent and can drop lower with industry incentives. Add a young, skilled workforce and clear rules for payroll, social security, and foreign hires, and you have a solid base for long-term hiring.

Together, these factors make Indonesia one of the most practical and high-potential bases for growing in Southeast Asia.

Read next: Global Hiring Guide: Indonesia

Indonesia Company Registration Essentials

Business registration in Indonesia is quite straightforward once you understand the process and have your paperwork properly prepared. Here’s a practical breakdown of what to expect so you can set up a legal entity without surprises.

Business structure options

The first big decision is what type of company to set up, because each comes with different capital rules and operating limits.

Think about your growth plan before your business registration in Indonesia and pick the structure that fits.

Registration process

Once you’ve chosen a structure, the process of business registration Indonesia moves in clear stages:

• Name reservation and deed: Select a three-word name and have a notary draft the Deed of Establishment and Articles of Association. The notary submits these to the Ministry of Law and Human Rights for approval.
• OSS application: Create an account on Indonesia’s Online Single Submission (OSS) system. Enter your Indonesia company registration details, shareholders, address, and business activity codes (KBLI). The system issues your Business Registration Number and company tax number, Nomor Pokok Wajib Pajak (NPWP).
• Follow-up licenses and post-setup tasks: If your sector requires extra permits (for example, manufacturing or food production), the OSS will flag them. Inject paid-up capital if you’re a PT PMA, open a local bank account, and register for BPJS before hiring.

Required documents

• Passports or Indonesian IDs (Kartu Tanda Penduduk) of all shareholders and directors.
• A signed office lease or virtual office agreement to prove your business address.
• Draft Articles of Association and a power of attorney if an agent submits on your behalf.
• Sector-specific paperwork, such as environmental clearance or technical licenses.

Note: Foreign corporate shareholders must have their documents notarized and translated into Bahasa Indonesia.

Timeline

• Local PT: The Indonesia company registration process typically takes 2–4 weeks once all documents are complete and no additional sectoral permits are required. The process includes company name approval, deed notarization, OSS/NIB registration, and tax ID issuance.
  
  • Expect delays if your business requires special licenses or operates outside major cities.
• PT PMA: usually takes 6–10 weeks, allowing for capital verification, notarial and ministry approvals, and potential coordination with the Investment Coordinating Board (BPKM). If your business operates in a regulated sector or involves foreign document legalization, plan for up to 12 weeks to complete business registration in Indonesia.

Businesses in regulated industries (e.g., finance, energy, healthcare, or education) often require extra permits, which can extend the process. Preparing compliant documents early, especially those requiring apostille or embassy legalization, can help prevent major delays.

Cost breakdown

Costs are a mix of service fees and statutory requirements for your company registration in Indonesia.

• Notary and legal: IDR 5–10 million (US$300–600) for a local PT; higher for a PT PMA due to added filings.
• Government charges: small (often under US$100) for gazette publication and OSS filings.
• Professional service fees: using a one-stop consultant for a PT PMA generally runs US$2,500–5,000, depending on complexity.
• Capital requirement: none for a Representative Office, flexible for a local PT, and IDR 10 billion planned investment for a PT PMA, with roughly 25 % injected upfront. Note that recent regulations have lowered the paid-up capital to around IDR 2.5billion for qualifying foreign investors.

Factor in office rent, bank account setup, and work permit costs if you are planning to hire foreigners.

Employment Compliance in Indonesia

Legal framework for employment

Recruitment in Indonesia is associated with definite legal procedures. Manpower Law stipulates such fundamental aspects as the number of hours that employees work each week, paid leaves, remuneration for overtime, and contract termination.

Employment contracts

All employment contracts must be written in Bahasa Indonesia or be bilingual, and must clearly state details such as wages, working hours, leave entitlements, and the annual Tunjangan Hari Raya (THR) holiday allowance. Including compliant contracts as part of your business registration in Indonesia ensures smoother HR operations and avoids potential legal issues.

Hiring foreign employees

If you plan to hire foreign workers, you must first obtain an approved RPTKA (Foreign Manpower Utilization Plan). After that, you need to secure their work and stay permits (KITAS). Employers are required to make a monthly training fund contribution for each expatriate as part of Indonesia’s company registration obligations.

Mandatory employee benefits and contributions

All employees must be registered with both BPJS Ketenagakerjaan (employment insurance) and BPJS Kesehatan (health insurance). Employers are required to remit these contributions, along with monthly income tax payments, under their official business registration number.

Understanding employment compliance is only the first step. Once your Indonesia company registration process is complete, the next priority is setting up the foundations for your first successful hire.

Your First Hire Checklist

When hiring your first employee in Indonesia, you will need to lay some important core HR and compliance foundations before their first day. Establishing these during your Indonesia company registration process ensures that payroll, taxes, and benefits run smoothly from day one.

• Pre-employment setup: Make sure that your company tax number (NPWP) and BPJS accounts are active so you can legally withhold and pay taxes and social security contributions under your business registration number.
• Draft compliant contracts: Prepare contracts using the accepted languages and include the basics such as job scope, compensation, working hours, leave entitlements, THR allowance, and fair termination conditions. This ensures your documentation aligns with Indonesian labor law requirements for business registration in Indonesia.
• Set up payroll with mandatory deductions: Implement a payroll software that automatically calculates and pays monthly income tax and BPJS contributions, while managing overtime and allowances in compliance with company registration Indonesia standards.
• Plan the onboarding flow: Prepare and organize workplace policies, collect necessary tax and insurance data, and ensure your new hire has the tools and workspace ready for day one. A structured employee onboarding process helps your newly registered business in Indonesia to operate efficiently and compliantly. 

What to Plan Beyond Your First Employee

As your business scales in Indonesia, you will need a more comprehensive plan beyond your initial hiring plan. Efficient recruitment, effective talent sourcing, and maintaining payroll and compliance will become top priorities. 

Here are some factors to consider:

1. Choosing between an EOR and direct employment

When speed becomes a priority, such as when testing the market or hiring in remote locations, an Employer of Record (EOR) can be a great partner to help onboard employees quickly without setting up an entity. 

However, if you plan to establish a long-term presence or build a larger local team, the Indonesia company registration process gives you more control over your operations, even though it comes with greater administrative burden and compliance responsibilities. 

2. Knowing when local structures become limiting

A Representative Office works well for early-stage research and networking, but it cannot sign contracts or issue invoices. Once you start gaining real traction, it is time to upgrade to a PT PMA or transition employees under an EOR, allowing your business to operate fully and legally in Indonesia. This is when getting the Indonesia company registration process right becomes crucial. 

3. Managing multi-location hiring

Talent availability and costs vary widely across Indonesia. For example, Jakarta offers the largest pool of specialized professionals but at a higher wage level, while cities like Bandung or Surabaya can provide more cost-efficient hiring options. 

If you plan to open branch offices, remember to update your business details in the OSS portal as part of your Indonesia company registration, and ensure compliance with local minimum wage regulations. 

4. Scaling HR and payroll systems

As mentioned previously, managing growing payroll, BPJS contributions, income tax filings, and leave tracking obligations manually can quickly become a compliance risk. Partnering with trusted HR software solutions like Omni can help keep these processes accurate, automated, and compliant across multiple locations.

Manual Business Registration Indonesia vs. EOR

As your operations mature, the question evolves into not just how to hire, but how to scale efficiently. For many growing businesses, deciding between continuing with direct employment or leveraging an EOR depends entirely on your timeline, market goals, and capacity for administrative management. 

If you’re looking to expand quickly or explore new regions, using an EOR can simplify operations while keeping you fully compliant, offering a faster alternative to the traditional Indonesia company registration process. 

Understanding your options

Setting up a company the traditional way means setting up a legal entity from scratch. This manual business registration in Indonesia involves reserving a name, signing a notarial deed, completing the OSS licensing process, appointing local directors or commissioners, and meeting the minimum paid-up capital requirements. 

Even with all things set, chances are that you might encounter several weeks of back-and-forth and ongoing work to manage payroll, BPJS filings, and monthly tax reports. 

An EOR flips that timeline. Instead of forming your own entity, you can hire through the EOR’s local company, bypassing manual Indonesia company registration while ensuring compliance with employment laws, tax obligations, and social security requirements. 

Managing compliance as you scale

As your team continues to grow, maintaining business compliance can be complex. Minimum wage rates differ by province, BPJS contributions change over time, and severance calculations can be tricky. Without a strong HRIS or support from an EOR, newly established businesses risk falling out of compliance. 

An EOR like Omni lets you hire and pay Indonesian staff immediately without creating a legal entity. Omni acts as your local employer of record, handling payroll, taxes, BPJS, and compliant employment contracts while you oversee day-to-day operations. You gain speed, compliance, assurance, and flexibility, ideal for market testing or running a lean regional team before deciding on a full business registration in Indonesia. 

Learn more: Global Employer of Record Guide: Indonesia

See How Omni Supports Indonesia Company Registration

Exploring Indonesia company registration often begins with deciding whether to go through the full legal process of business registration in Indonesia or to look for faster alternatives. While many entrepreneurs choose the traditional company registration in Indonesia, whether as a sole proprietorship or incorporated entity, this route requires handling payroll, tax filings, and statutory obligations on your own, including obtaining a business registration number.

For businesses that want speed, flexibility, and reduced risk, Omni HR offers a smarter solution. Our EOR service allows you to bypass the complexity of setting up a company in Indonesia while still hiring employees legally and compliantly. Let Omni handle everything from company registration requirements to ongoing payroll and HR compliance, so you can focus on market entry and growth.

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If you are still weighing the benefits of business registration in Indonesia versus a faster route through an EOR, book your demo with our team today to learn more.