Q&A on the process of registering a company and obtaining a KITAS
Decided to open a company and get KITAS? Then we suggest you familiarize yourself with frequently asked questions about the process of opening a company and obtaining KITAS.
List of documents:
Company name consisting of 3 English or Indonesian words (without the words "company", "corporation", words must be 3 letters or more, without punctuation marks)
Full name in English, who will be the director, who will be the commissioner.
What shares you participate in (for KITAS shares not less than 10 billion, for KITAP not less than 15 billion). The company must have at least 2 founders.
Photos of passports, contact phone numbers, and e-mail of all founders (passport validity period not less than 18-30 months).
Will you use your office or ours (virtual)?
Do you take our services for subsequent company servicing?
Description of the company's type of activity.
Residential address in Indonesia (needed for setting up a virtual office and/or KITAS)
❗️ It is better to specify an address with which you have a connection, because:
There may be inspections.
To extend KITAS, you will need to have SKTT (cost of registration 3 million), to make it you will need the ID of the premises' owner specified as the address in KITAS
Check company name: https://ahu.go.id/sabh/perseroan/pesannama
If the company opening is for real business activity, please detail the types of activities you plan to conduct (if it's a restaurant, what type, what seating, will anything be prepared/produced, will it be sold, is there delivery, what products specifically — and similar details).
Please note that adding types of activity after registering a company entails changes in the Articles of Incorporation and costs for these actions.
The cost of adding codes is 6 million Rupiah, the cost of activating 1 code is 1.5 million.
Different codes can be combined in one company, but there may be exceptions (for example, wholesale and retail trade cannot be combined). We will select codes for you, and you need to approve them.
The number of codes is not limited, but keep in mind that the more codes, the longer and more expensive the company registration process.
Code selection: OSS — Sistem Perizinan Berusaha Terintegrasi Secara Elektronik
The minimum authorized capital of a company is 10 billion Rupiah (about 650 thousand dollars). According to legislation, the authorized capital must be deposited after registering the company.
Confirmation of paid-up capital of the company is provided in the form of an original letter-report on paid-up capital in PT, signed by all members of the board of directors together with all founders and all members of the board of commissioners in PT, provided by a notary, and we give our clients this document for signing because we know that in most cases the client cannot provide 10 billion.
After registering the company, you can deposit these funds into the company account and can, during the company's validity period, use the funds for investments, i.e., company expenses aimed at business development, such as purchasing equipment, salary payments, service payments, etc.
The minimum authorized capital is 10 billion Rupiah, thus the business must correspond, but in practice, very few open companies create such a large business (most work as they are, and most often open companies only for KITAS without any activity). Currently, we do not observe sanctions, but it is impossible to predict what future regulation will be.
If you plan to issue KITAS, then each founder applying for KITAS must have a share size of not less than 10 billion.
A legal address (office) is a mandatory condition for company registration, changing the company address entails changing many documents, and changing the address later costs 6 million IDR. Correspondence from government bodies will be sent to the address.
We can provide a virtual office for rent. The rental cost is 6 million per year.
If you use your own address, the following will be required from you:
building address on Google maps
photo of the building
commercial lease agreement
land certificate
IMB (building permit)
All new companies fall under the simplified taxation system, with a rate of only 0.5% of incoming money (turnover) on the condition that you do not exceed an annual turnover amount of 4.8 billion Rupiah or approximately $300,000
There are also dividend taxes — 10% of the dividend amount.
This is the basic tax scheme for your company for the next 3 years. After three years or reaching a turnover of 4.8 billion, the tax will be 22% per year of the company's net profit.
Our tax specialist can consult you in more detail about taxes and accounting in English. The cost of consultation is 2.5 million per hour. You can prepare questions in advance to make the meeting more productive, and we will schedule a time and date for the meeting.
Yes, for some types of business, the participation of local residents is necessary, they should be part of the founders, accordingly, the company's capital is divided among all participants in proportions defined by legislation for these types of company activities (for example, financial or construction fields).
Minimum 2 founders. Maximum is not defined.
You can only perform management functions, as well as the duties of a director or commissioner of the company if you hold that position.
You do not have the right to work in other positions. For example, in your own restaurant, you cannot work as a chef or even a cleaner.
If you intend to work as a chef, hairdresser, plumber, consultant, instructor, etc., you must have a work permit (IMTA), and furthermore, some positions are closed to foreigners, so it is necessary to research whether a certain position is open to you or not.
If you plan to work, you need a work KITAS, which costs from 13 million + $1,200 annual government tax (the final price depends on the set of documents submitted).
It is impossible to combine the status of an investor and employee.
As a founder and director/commissioner of the company, you can obtain a work KITAS if you own shares in the company of less than 1%.
In any case, to issue 1 work KITAS to a foreigner, you need to hire at least 3-5 local employees in the company.
Director(s) of PT PMA are appointed by the General Meeting of Shareholders. The main duty of the director is to perform the day-to-day management of the company and to establish and maintain relationships with third parties. According to the Indonesian Companies Act, each PT PMA must have at least one director.
When there is more than one director, one is appointed president of the directors, who leads the board of directors. All directors can be foreigners. However, if there is a local shareholder in PT PMA, BKPM (Investment Coordinating Board of Indonesia) recommends that the company also has at least one local director.
Commissioner of PT PMA
The main duty of an authorized commissioner is to oversee the management's work, especially directors, to ensure that all actions and decisions made by them are in line with the company's objectives. PT PMA must have at least one commissioner, who may be a local resident or a foreigner.
If PT PMA chooses to have more than one commissioner, one of them should be appointed as the presidential commissioner, responsible for leading the board of commissioners.
Here's what can be done and decided at the general meeting of founders:
A. Notification of changes to the charter
Capital increase
Type of company
appointment of director and commissioner
Transfer of shares
Change of shareholders
full company address
B. Approval of changes to the charter:
Company name
Positions
Company's mission and goals
Term of the Articles of Incorporation
Increase in authorized capital and other statutory changes
Apart from the above-mentioned changes, the rest is decided by the director, for instance, business agreements, hiring employees, employee salaries, obtaining bank loans, contracts, etc.
The main duties and functions of the commissioner include:
The Board of Commissioners can oversee the company's policy.
The Board of Commissioners can monitor general operational management.
The Board of Commissioners can give advice to the board of directors.
Providing advice and supervision is done in the interest of the company following its goals and objectives.
Cost of closure: 16.4 million Rupiah
PT CLOSURE PROCESS:
1️⃣ Signing a resolution to close the company
2️⃣ Announcement of closure in newspapers
3️⃣ A resolution for closure is issued 60 days after the newspaper announcement.
4️⃣ Application for NIB withdrawal
5️⃣ Closure resolution
6️⃣ Closure resolution, receipt, and newspaper clippings submitted for the process of canceling the company's NPWP in the tax office
7️⃣ If reporting obligations, fines, or tax underpayments remain, all must be paid.
At the time of deciding to close a company, the director must be in Bali! Also, during the entire process of withdrawing the company's NPWP, the director must stay in Bali or be able to return to Bali at any time. If this is not possible, you appoint a liquidator.
❗️Upon fulfilling all obligations, the organization's NPWP is withdrawn, and the company's liquidation process is considered complete. NPWP withdrawal takes 6-12 months. Penalties may be charged upon NPWP withdrawal (usually from 300 thousand Rupiah).
Yes.
The KITAS can be closed onshore (EPO — before leaving Indonesia) and offshore (ERP — after leaving Indonesia).
EPO/ERP costs 1,500,000 Rupiah.
EPO — onshore process
you need to hand over your passport to us for closing the KITAS.
provide the original passport and ID of the local employee
after submitting the documents for closing the KITAS, you can leave Indonesia within 7 days.
if your KITAS expires earlier than in 7 days, you must leave before the KITAS expiration date.
ERP — offshore process
depart on the KITAS before it expires
send us a photo of the exit stamp and exit tickets from Indonesia
send the ID of your local employee
The KITAS closure process takes about 5-7 working days.
It is important to understand that without closing KITAS, no other visa can be obtained except VOA, including other types of KITAS.
We provide the following services:
Submission of company reports;
Hiring employees for the company.
The cost of submitting reports depends on company turnover:
Zero companies — 17 million per year (3.2 million per quarter + annual)
Small companies — 28 million per year (6 million per quarter + annual)
Medium companies — 45 million (10 million per quarter + annual)
Large companies — from 60 million per year depending on the type of company activity
Submission of company reports includes:
monthly tax reports
company financial report
annual company report
annual director's report
quarterly investment reports (LKPM)
issuance of NPWP, EFINs
registration in DJP online
1 free hour-long consultation at the office
chat support with English-speaking and Russian-speaking specialists
We submit reports based on the data you provide:
Statements from the company account (if there is an account);
If you have cash receipts, a table in excel form in English including income/expenses plus any receipts (if available).
*Companies in Retail and Hospitality service also need to submit a PHR report if they have NPWPD.
The cost of submitting PHR reports is 3 million per year.
We also provide assistance in employing local and foreign employees and arranging Indonesian medical and social insurance.
▶️ Drafting a bilingual (English and Indonesian) employment contract — 1,300,000 Rupiah
▶️ Registration in BPJS Employment and BPJS Health (social and medical insurance respectively):
Registration in BPJS Employment — 1,000,000 Rupiah per person
Registration in BPJS Health — 1,000,000 Rupiah per person
❗️Registration is possible only from 2 employees. Insurance premiums are paid separately each month by the employer directly to the insurance organization. The premium amount depends on the tariff and salary, usually around 300,000 Rupiah per person in one insurance.
▶️ If employees are present, an annual report on the company's employment structure must be submitted to the labor department.
The cost of submitting the report is 750,000.
The report needs to be updated every year. Updating the report costs 1,000,000 Rupiah.
Drafting a termination agreement — 300,000 Rupiah
*The director also needs to register in BPJS
▶️With a KITAS, you can register in BPJS HEALTH as an individual applicant.
The condition is to stay in Indonesia for the last 6 months without leaving.
You need to personally visit the office to arrange registration.
The cost of support and assistance in filling out data is 500,000 Rupiah.
After registering the company, you can apply for an investor KITAS.
1️⃣ passport valid for at least 30 months (scan or photo);
2️⃣ bank statement from personal account and company account with a balance of at least $2,000 and movement of funds for the last 3 months (any bank, any currency, statement in English; both statements are required);
3️⃣ personal photos (face and shoulders, directly in camera, can be a selfie);
4️⃣ your current e-mail
5️⃣ your WhatsApp phone number
6️⃣ full permanent residential address in Bali
❗️It is better to list an address you are associated with as:
There may be checks at this address.
To extend the KITAS, you will need to have SKTT (the cost of processing is 3 million), and to do this you will need the ID of the premises owner specified as the address in KITAS.
When changing residence, you will need to change the address in KITAS, the cost of changing the address is 2 million IDR.
After obtaining an investor KITAS, you can get a family KITAS for a spouse (if he/she is not a co-founder of the company) or children under 18.
Requirements for family KITAS sponsored by a relative with an open investor KITAS:
1️⃣ passport valid for at least 18 months (scan or photo);
2️⃣ bank statement from personal account and company account with a balance of at least $2,000 and fund movement for the last 3 months (any bank, any currency equivalent, statement in English, for children — the sponsor parent's statement);
3️⃣ personal photos (face and shoulders, directly in the camera, can be a selfie);
4️⃣ marriage certificate and birth certificate (if KITAS for children) in English (scan or photo).
The birth certificate and marriage certificate are translated via a sworn translation (translation with the participation of sworn translators, other types of translations are not accepted).
We can assist with the translation. Cost:
500,000 Rupiah per page — 3 working days
700,000 Rupiah per page — 1 working day
Regarding the process:
1️⃣ First, you pay for the company registration — from 20 million IDR — the company registration period is about 2-3 weeks.
The cost depends on the type of activity and the company's address.
If you choose a virtual office, within a couple of days we will send an invoice for the payment of the company's legal address — 6 million per year (renewal is required later).
2️⃣ After registering the company, you need to open an account. Only a limited number of banks open accounts to companies without a KITAS director. Regarding the terms and possibility to open an account for the company, it is necessary to clarify immediately after opening the company.
3️⃣After opening the company and the account, you can start the process of obtaining KITASes themselves.
Offshore investor KITAS for 1 person for 2 years — 16 million IDR.
To arrange an investor KITAS, the share in the company must be not less than 10 billion IDR. Upon expiration of the KITAS, it must either be renewed or closed!
4️⃣We file an application for an investor KITAS, and approximately 2 weeks later, you receive an e-visa for entry (e-KITAS).
❗️ If there are children or a spouse who is not a company founder, after you get your e-KITAS, you can apply for a family e-KITAS, which takes about 2 weeks, costing 9.5 million for 1 person for 1 year.
❗️ The duration of the family KITAS cannot exceed the duration of the investor KITAS.
❗️There are currently disruptions in the KITAS application system, so timelines may be extended.
4️⃣ Then you can leave and enter Indonesia to activate the KITAS.
5️⃣ After entering, you hand over your passport to us and wait for an invitation for biometrics. After biometrics, you get a full KITAS, with which you can open a bank account, register a bike under your name, cars, contact government bodies, etc.
❗️KITAS does not work as a visa until you enter Indonesia with it and complete biometrics.
‼️ Please, until you enter Indonesia with the KITAS, monitor your current visas if you are now in Indonesia.
Total cost:
▶️ Company registration — from 20 million (depends on the type of activity and the company's address)
▶️ Company maintenance — from 16 million per year (depends on company turnover)
▶️Legal address rental — 6 million per year
▶️ Offshore investor KITAS — 16 million for 2 years for 1 person
▶️ Family offshore KITAS — 9.5 million for 1 year for 1 person
▶️ Opening a bank account for the company — from 500,000 Rupiah
Payment can be made in stages.
There is also the possibility of obtaining an onshore KITAS without leaving Indonesia, more details can be explained in the chat.