Companies are legally registered in Indonesia once the full incorporation procedure is completed with the local authorities. To register a business in Indonesia, the founders follow the processes and the requirements set forth by the Ministry of Law and Human Rights. Upon request, our Indonesian incorporation specialists assist those who are interested in company registration.
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Essential steps for company registration in Indonesia
Like in other jurisdictions, business registration in Indonesia is a process that ends with having a new legal entity entered into the local registry of companies. In Indonesia, the registry operates under the Ministry of Law and Human Rights. You can read more about the main role of this central authority below.
Before investors can register a company in Indonesia, they must prepare the Deed of Incorporation. Below, our team highlights the main steps for company creation:
- Select the business name and verify that it can be used;
- Decide on other company particulars that will be relevant for doing business in Indonesia (such as the shareholding structure, the object of activity, etc.);
- Prepare the company’s Articles of Association. These are the documents that contain the company’s particulars in writing;
- Once the Articles and other documents are provided, conclude the Deed of Incorporation. Special assistance is provided during this step from our team, under a package for company registration in Indonesia;
- Have the legal entity entered into the official business register, the one kept by the Ministry of Law and Human Rights and wait for the authority’s confirmation that the business is approved for functioning.
Registration requirements also apply in case of branches in Indonesia. Our local agents can give you more information.
Mandatory registration with the Indonesian authorities
As previously mentioned, no company is considered incorporated in Indonesia unless it is entered into the Ministry of Law and Human Rights’ information management system. This is a platform designed to include data on registered legal entities, and it offers access to:
- information on the business type and its main object of activity;
- business data and some financial information;
- the legal entity’s relevant legal history;
- management structure;
- other data (see below).
When you register a business in Indonesia, you agree to have certain public information disclosed about its directors and shareholders, as well as have its registered address (which must be based in Indonesia) disclosed to the public searching the registry.
The role of the company registry in Indonesia
The Ministry of Law and Human Rights database of companies is referred to as the AHU-Online. Operating the platform is subject to registration, and this is something our local team of incorporation agents can assist with.
While companies are required to disclose a wider range of information upon registration (as listed above), not all of the data is subject to free, public access. This is why working with our team is useful in many cases related to company registration in Indonesia, including making verification for beneficial ownership or other specific data on existing companies.
Apart from receiving and handling company registration applications, the Ministry, through its database, also updates information on existing legal entities in Indonesia.
Doing business in Indonesia
If you want to register a business in Indonesia, you should know that the authorities have been implementing various policies meant to encourage foreign direct investment. As a result, Indonesia has been increasing its inflow of foreign direct investments. Data for 2024 from the Statistical Office shows that:
- The United States of America was the largest investor in Indonesia, with an investment value of 5.526,30 million US$;
- They were followed by Canada, with 492,70 million US$;
- The European country with the largest investment amount was Belgium, with 166,50 million US$.
Contact us if you are interested in business registration in Indonesia and require assistance with the mandatory registry submissions.