Legal Entity Establishment

Property Legal Services

Establishment of a Legal Entity: Targets & Benefits

A legal entity in Indonesia refers to a formal business structure recognized by the government. The two main types of legal entities are PT (Perseroan Terbatas) and PT PMA (Perseroan Terbatas Penanaman Modal Asing). Having a legal entity is essential for several reasons.

Having a legal entity is crucial for obtaining HGB because Indonesian land laws generally restrict land ownership to Indonesian citizens and certain legal entities. Hak Guna Bangunan” (HGB) is a type of land use right that grants the holder the right to construct and own buildings on land that is owned by the state or by another entity. To obtain HGB, a legal entity establishment is typically required. This involves setting up a company or organization that can be recognized as a legal entity under Indonesian law.

Through a PT or PT PMA, foreigners can acquire property rights as long as the land use aligns with the company’s business activities and is following prevailing regulations. This arrangement allows foreign investors to establish a legal presence in Indonesia, facilitating property ownership while ensuring compliance with the country’s land ownership laws.

Advantages of Lets Move Group Assistance in Establishing a Legal Entity

A legal consultant with expertise in Indonesian corporate law can navigate the intricacies, assist with the necessary documentation, ensure compliance with local regulations, and provide valuable insights to help you choose the most suitable legal structure for your business, thus mitigating risks and maximizing the chances of a successful establishment.

By establishing a legal entity with Lets Move Group, our clients can benefit from legal expertise, proper documentation, a simplified process, and customized solutions.

Our expert teams are located across Jakarta & Bali, ready to assist you completely with a hassle-free Inheritance Deed process!

Complete Guide to Establishing a Legal Entity in Indonesia

  • Consult the type of property you would like to purchase and how it matches the type of business in Indonesia.
  • Our team will navigate the process of your Company Registration according to the law.
  • Once finished, we will contact you to continue the property transaction process.

Requirements for Legal Entity Establishment Documents in Indonesia

1. Minimum 2 shareholders
2. Identity and contact details of Company Shareholders: For Indonesian Individuals, KTP and NPWP For Foreign Individuals, a valid passport For Indonesian Companies, a copy of the Article of Establishment and the amendments and the Approval from the Ministry of Law and Human Rights, Domicile Letter, Tax Id, Business License, Company Registration Certificate (TDP/NIB) For Foreign Companies/entities, a copy of the Article of Association in English or its translation in Bahasa Indonesia from a sworn translator and already got Apostille Stamped, Scan Copy of the Passport Director, Detail Address of the Company.

  • Warga Negara Indonesia: KTP dan NPWP
  • Warga Negara Asing: Paspor yang masih berlaku
  • Perusahaan Indonesia: Salinan Akta Pendirian dan Perubahan Terakhir beserta
  • Pengesahan dari Kementerian Hukum dan HAM, Domisili Perusahaan, NPWP, Surat Izin Usaha, TDP/NIB
  • Perusahaan/Entitas Asing: Salinan Anggaran Dasar dalam Bahasa Inggris atau terjemahan tersumpah dan telah dilegalisir, Scan Paspor Direktur, Alamat Lengkap Perusahaan

3. Identity and contact details of Company Directors and Commissioner: For Indonesian individuals, KTP, NPWP, email and phone number. For Foreign Individuals, a valid passport, email and phone number.

  • Warga Negara Indonesia: KTP, NPWP, alamat email dan nomor telepon
  • Warga Negara Asing: Paspor yang masih berlaku, alamat email dan nomor telepon

4. Copy of the Lease Agreement between the company and building management

5. Pas Photo 3X4 Background Red (Bali only)

6. Building Permit (IMB) and Land Building Tax (PBB/Pajak Bumi Bangunan) (Bali Only)

What are the minimum requirements to establish a Legal Entity in Indonesia?

  • Establishing a legal entity in Indonesia would require a foreign investor to fulfil the following conditions:
  • Minimum of 2 shareholders.
  • Minimum paid-up capital requirements vary depending on the business sector, typically ranging from IDR 2.5 billion to IDR 10 billion.
  • Specific licenses and permits might be required based on the sector.

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  • Permanent employee/self-employed for at least 1 year in the same company/total 2 years of work
  • Professional/Businessman working for at least 2 years in the same field
  • At least 18 years old or married

General Personal Requirements

  • Photocopy of husband’s / wife’s ID card (if married)
  • Photocopy of Family Card
  • Copy of Marriage Certificate (if married)
  • Photocopy of Tax ID Number of Applicant
  • Salary Slip / Certificate of Income for the last 1 month original
  • Photocopy of 3 months bank statements
  • Developer’s House Booking Letter / Broker’s Cover Letter