Set Up Company

Set Up Company – Building Legality as a Solid Foundation

Establishing a business entity is a critical first step that determines the direction and future of a company. More than just a legal formality, incorporation is a strategic process that influences how a business will operate, grow, and be legally protected. Decisions made at this stage affect many key aspects, from ownership structure to competitiveness in the market.

The type of business entity chosen has a direct impact on tax obligations, access to financing, and future expansion opportunities. The right structure can unlock the potential to broaden business reach and attract strategic partners, while the wrong choice may limit growth and increase operational burdens.

In Indonesia, there are two of the most common forms of limited liability companies: PT PMDN (Domestic Investment Company), intended for Indonesian citizens or local legal entities, and PT PMA (Foreign Investment Company), intended for foreign individuals or corporations seeking to invest in Indonesia. Each has its own regulations, capital requirements, and ownership rules, making it crucial to select the right form from the beginning to ensure smooth business operations.

Mistakes at the incorporation stage can have long-term consequences, ranging from licensing obstacles to the risk of business suspension. In a regulatory landscape that constantly evolves, professional guidance is key to ensuring that every step is effective, secure, and legally compliant. Paralegals.id is here to help you establish your company in Indonesia with a strong legal foundation aligned with your long-term business goals.

Planning, Not Just Registering a Company

Company formation is not merely about drafting the deed of establishment and obtaining a Business Identification Number (NIB). The process involves a series of crucial steps such as determining the right ownership structure, selecting the appropriate KBLI code (Indonesian Business Classification), drafting the company’s Articles of Association, and securing sector-specific licenses when applicable. Each step carries significant legal and business implications.

For foreign investors, establishing a PT PMA tends to be more complex. In addition to complying with regulations listed in the Negative Investment List (DNI) or the Priority Investment List (DPI), foreign-capital companies are also required to meet relatively high minimum capital requirements. Moreover, they must regularly submit investment reports to the relevant authorities.

Meanwhile, for domestic entrepreneurs, a PT PMDN provides the flexibility of full ownership by Indonesian citizens. Nonetheless, there are still legal obligations to comply with, including sectoral business licenses and operational standards specific to the line of business.

By understanding this complexity, Paralegals.id ensures that every decision made at the early stage of incorporation is truly the right one. This approach helps clients avoid risks of structural or licensing changes later, which could cost time, money, and energy — allowing the company to immediately focus on business growth.

How Does Paralegals.id Help You?

We begin our Set Up Company service with an in-depth consultation to understand each client’s business model, long-term goals, and legal needs. From this consultation, we determine the most suitable business entity, whether PT PMA for foreign investors or PT PMDN for domestic entrepreneurs. All required documents are then prepared accurately, completely, and in compliance with applicable laws.

Our assistance covers every key stage, from consultation on selecting the right business entity, drafting the deed of establishment and articles of association, obtaining the Business Identification Number (NIB) and licenses through OSS according to the business sector, company tax registration and NPWP, to handling sector-specific permits with strict regulations. For PT PMA clients, we also provide full support in fulfilling government-mandated investment reporting.

With this systematic and comprehensive approach, Paralegals.id guides every step until your company is officially established and ready to operate legally in Indonesia. Our goal is to ensure the incorporation process runs smoothly, securely, and efficiently—so clients can immediately focus on business growth without worrying about legal compliance.

Why Choose Paralegals.id?

Paralegals.id has extensive experience in establishing various types of companies, from technology startups, service businesses, and trading enterprises to international-scale corporations. This expertise enables us to fully understand the fundamental differences between PT PMA and PT PMDN, including their implications for operations, ownership structure, and business development strategies.

Our approach combines administrative precision with strategic legal insight. We ensure that the entire incorporation process is carried out in accordance with applicable regulations while also providing practical, relevant guidance to shape the first steps of your business.

With Paralegals.id, you gain more than just legal incorporation. You secure a solid foundation to build your business future, along with continuous support to ensure your company grows, adapts, and complies with all legal obligations from day one of operations.