International business · Indonesia · In-depth analysis

How to start a business in Indonesia: company formation, tax and bank account

This guide connects market entry, incorporation, licensing, tax, people and banking in Indonesia without treating registration as permission for every activity.

Key points
  • Define the operating model before incorporation.
  • Company formation and regulated licensing are separate workstreams.
  • Tax treatment follows source, residence, functions and evidence.
  • The bank independently reviews the owners, business and funds.

01

1. Define the operating model

Map the product, customers, import/export, movement of own or client money, people, data and technology. Translate the model into precise KBLI codes and check foreign ownership and sector regulators.

02

2. Form the company

PT PMA formation links a notarial deed, Ministry of Law approval, tax number, address and OSS. Shareholders, UBO, directors, capital and the investment plan should be consistent throughout the file.

03

3. Check every licence

OSS RBA assigns low, medium-low, medium-high or high risk. NIB may cover low risk; higher tiers require a standard certificate, verification or licence. Regulated sectors remain subject to their own authorities.

04

4. Build the tax and accounting file

General corporate income tax is 22%. VAT mechanics after the 2025 changes require a transaction-level review of rate and taxable base, together with withholding, PE, transfer pricing, customs and e-filing.

05

5. Prepare the bank-account application

A bank reviews PT PMA/NIB, licences, ownership, capital and funds, contracts, premises, people, countries and turnover. Payment models also require the Bank Indonesia perimeter and operational controls. Approval is never guaranteed.

06

6. Launch and maintain compliance

Coordinate sector approvals, tax, employment and immigration, BPJS, standards, contracts, data and OSS reporting. Confirm PP 28/2025 and the live OSS workflow before filing.

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Sources

Primary materials behind this article

We rely on official guidance and legal materials. Their current version and the client’s circumstances must be checked before any transaction.

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