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Starting A New Business In Indonesia


It can be daunting enough starting a new business, let alone doing so in a foreign country like Indonesia. There are a lot of hoops to jump through, and not all of them are mandatory. In this article, we will walk you through the steps you need to take to register your business in Indonesia. We’ll cover everything from choosing the right location to filing the correct paperwork. So whether you’re just dreaming of starting your business on the path, read for advice on how to make it happen.

The process of starting a business in Indonesia

If you are considering starting or expanding a business in Indonesia, be aware of the process involved. The first step is to determine whether registration is required at all. If not, register with the relevant government agency and proceed to the next steps.

Required documents for Indonesia company registration vary depending on the sector of activity. You will need to provide information such as the name of your business, its purpose, the owner(s), contact information for management, and financial statements. In addition, you will be required to obtain a business license from relevant authorities, usually in the form of a permit or certificate. A business tax may also be applicable.

Once you have all of your required documents, you can commence preparations for opening your business. It includes preparing a business plan and organizing resources (e.g., staff). It is also essential to conduct market research and identify potential customers. Once your preparations are complete, it’s time to open your doors!

What are the necessary documents for starting a business in Indonesia?

To start a business in Indonesia, you will need the following:

  • A business license
  • A Trade License
  • Business Registration Form
  • Proof of Capital (bank statements, letters of credit, etc.)
  • Proof of Ownership (land title, lease agreement, corporate charter)
  • Employee ID cards and Immigration Documents for all employees (if any)
  • Insurance policies in place (worker’s compensation, general liability, product liability)

Taxation for businesses in Indonesia

Taxation in Indonesia for businesses is complex and depends on various factors, including the type of business, its location, and the company’s size. All businesses must register with the government and pay taxes based on their income. In addition to standard corporate taxes (such as income tax, value-added tax (VAT), and sales tax), many businesses must pay special taxes specific to their industry or activity, such as gambling taxes or customs duties. Finally, each business must also pay local taxes based on its location.

Indonesia’s main types of corporate taxes are income tax, value-added tax (VAT), and sales tax. Income tax rates vary depending on a company’s taxable income level; however, all companies must pay at least one basic income tax rate (currently 25 percent). Other fees may also be levied during the registration process.

If you are looking to reduce your tax bill, there are certain tax exemptions for companies. Small-medium enterprises in Indonesia with a yearly turnover of less than IDR 50 billion are entitled to a 50 percent tax reduction.


Starting a business in Indonesia can be a daunting task. Still, with the proper preparations and help from an experienced lawyer or incorporation specialist like Paul Hype Page Indonesia, you can successfully register your company and start building your dream business. Make sure to research the legal requirements of starting a business in Indonesia before jumping into anything, as ignorance of the law could lead to costly mistakes. If you have any questions about starting or registering a business in Indonesia, you can reach out directly to our recommended specialist above.

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