Home Blog Setting Up A Local PT. Company: A Guide For Foreign Investors Business Setup | Company Registration | Group1 | Indonesia Setting Up A Local PT. Company: A Guide For Foreign Investors InCorp Editorial Team 29 February 2024 2 minute reading time Table of Contents When To Establish A Local PT. Instead Of A PT. PMA Or Representative Office. The Process Of Setting Up A Local PT. In Indonesia. Contact Us When To Establish A Local PT. Instead Of A PT. PMA Or Representative Office. According to Indonesia’s Positive Investment List, there are several business fields that are closed-off to foreign ownership. The only alternative for foreign investors to operate within these business lines is to establish a Local PT. The general required structure to establish a Local PT company are as follows: 2 shareholders 1 local director 1 commissioner As the name explains – a Local PT. is a company set up for Indonesian citizens, with 100% local ownership. Size Of Local PT. And Its 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 t0 start the company. Small Local PT: Capital Investment of IDR 50 Million to 500 Million Medium Local PT: Capital Investment IDR 500 Million to 10 Billion Large Local PT: Capital Investment of IDR 10 Billion and above Can A Local PT. Hire Foreign Employees? Yes, However, the hiring is done via the Special Purpose Vehicle Company and, the required company size is medium Find out how to get a business visa and work permit in Indonesia. The Process Of Setting Up A Local PT. In Indonesia. No. Procedure Duration (working days) 1. Approval of company name at the Ministry of Law and Human Rights 2 2. Preparation of Association Article by Notary 4 3. Obtain Deed of Establishment at the Ministry of Law and Human Rights 3 4. Obtain Certificate of Domicile at the local government office 15 5. Obtain Tax payer registration number (NPWP) and VAT number at the tax office 3 6. Obtain Trading Business License (SIUP) 10 7. Obtain Company Registration Certificate (TDP) at the local government office 10 If you are unsure what type of company setup is suitable for your business, feel free to contact us. InCorp Indonesia will assist you to establish your business from the start in Indonesia based on your needs. You can subscribe our newsletter to get the updated information regarding business in Indonesia, once a month. By doing so, you actively create a newsletter subscription that keeps you informed. Contact Us Please send your question by filling in this form below. Our consulting team will quickly answer you via email. You can visit our office to know more details about our Company Registration service. Read Full Bio Pandu Biasramadhan Senior Consulting Manager at InCorp Indonesia An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.