Set up & structure

Local Indonesian Company (PT PMDN)

A local Indonesian company (PT PMDN) is the domestic entity: Indonesian shareholders, and no legal minimum capital.

Who this is for. An Indonesian founder, or a foreign investor working with Indonesian shareholders, who needs a domestic company without a PT PMA's capital requirement.

How it works
  1. Confirm the structure and the shareholders You Ownership, directors and commissioners, settled with us before anything is drafted.
  2. Draft the deed We Prepared with the notary and checked against the Ministry rules.
  3. Sign the deed You In person, or remotely where that is permitted.
  4. Obtain approval, NPWP, Coretax and NIB We The company exists legally, its tax account is activated, and it can trade.

Trusted by companies operating in Indonesia

Mainfreight
ELGi
Skuad
Bespin Global
You set it
Capital — no legal minimum
2 weeks
From instruction to trading
Indonesian
Shareholders required
Included

What you get

  • Deed of establishment and Ministry approval
  • NPWP and NIB, with the NIB issued through OSS
  • Sector licences for your KBLI classification
  • Shareholder and director documentation prepared correctly from the outset

A local Indonesian company (PT PMDN) is the domestic limited company — Indonesian-owned, with no minimum capital, and the standard vehicle for a business owned by Indonesian shareholders.

PT PMDN or PT PMA?

The deciding factor is who owns the shares, not who runs the business.

A PT PMDN requires Indonesian shareholders. It is faster and materially cheaper to establish, and it carries no minimum capital at all — it is classified by what it actually is, so a small company is treated as one.

A PT PMA permits foreign ownership, up to 100% in most sectors, but counts as a large enterprise whatever its size, and carries the capital floor that goes with that.

If you are one Indonesian founder, at micro or small scale, there is a lighter vehicle. A PT Perorangan is registered by electronic statement with no notary and no partner, and it converts into a company like this one when you take a second shareholder or grow past that scale.

If you are a foreign investor being offered a PT PMDN as a shortcut, understand what you are agreeing to: you would not be a shareholder. Arrangements exist to address that, and we will explain them plainly — including their risks — but you should go in with your eyes open rather than discover the position later.

Why us

Why MAM for Local Company (PT PMDN)

  • Local and expatriate, in one room

    The team is Indonesian and expatriate. Someone understands the local requirement; someone understands what a foreign investor is actually asking.

  • Formation, tax and books under one roof

    Accounting, tax and corporate work are done in-house rather than subcontracted, so the capital structure you register is the one your accounts then report.

  • Qualified accountants on the file

    MAM is led by ACCA members and registered with IAPI, the Institut Akuntan Publik Indonesia — so the thresholds quoted to you are read by people who audit against them.

Credentials

Qualified, and accountable for it

MAM's work is done by qualified accountants and carried out to the standards of these professional bodies — not by a general administrator following a checklist.

ACCA — Association of Chartered Certified Accountants Led by members
IAPI — Institut Akuntan Publik Indonesia Registered
IAI — Ikatan Akuntan Indonesia Member
IFAC — International Federation of Accountants Through ACCA
Reviews

What clients say

5.0 from 81 Google reviews

We have engaged many business consultants in past and MAM Corporate Solutions is by far among the most informed and professional business consultants as per our experience. They have helped us with various services such as tax compliance, company incorporation and business valuations and every time they have exceeded our expectations.
Fifi Yuliana Google review
MAM Corporate Solutions offers great services! All the team makes all the incorporation process very clear, and always takes the time to explain every step of the way in details. They are fast and efficient, and always make sure they find the solution that's most adapted to your need. I could not recommend them enough!
Charlotte Charbit Google review
MAM Corporate Solutions provides us accounting service on Xero. They have always kept our records up-to-date and we are happy with their service.
DEVI NARIA SARAGIH Google review
Questions

What people ask us

What do you need to know before you can quote?
The proposed company name, the details of the directors, shareholders and commissioners, the business activity, whether you need a virtual or a physical office, and where the company is to be set up. We also need identity cards (KTP), email addresses, residential addresses and contact numbers for everyone named. It comes through a diagnostic form our team sends once the initial quotation is signed, so you are not assembling it in the dark.
How long until the company can actually trade?
Around two weeks.
What is the minimum capital?
There is no statutory minimum any more. The founders set the authorised capital in the deed, and at least a quarter of it must be issued and paid up, with proof filed within 60 days of signing. The figure you choose matters for a different reason: it sets the company’s size band, and the band governs licensing and how often the investment report is filed. We normally form at IDR 50 million, which sits well inside micro scale.
What must the company file in its first year?
Two start at once, trading or not: the investment board report (LKPM), which has a preparation-stage version for a company that is not yet operating — unless the business is micro-scale, which is exempt — and the annual corporate return. Monthly tax and payroll compliance follow once it starts trading and paying staff — sooner if it is registered for VAT, because a VAT return is filed every month, even at nil.

Ask about this service

Tell us what you need and we will come back with a clear next step. Prefer to talk? Book a free 30-minute call.

or email us directly
Goes with this

Often needed alongside this

Virtual office

A virtual office Indonesia authorities accept for registration — address, mail and calls handled.

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Corporate secretary

Corporate secretary Indonesia work: registers, resolutions and filings kept correct and current.

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Bookkeeping & accounting

Bookkeeping services Indonesia standards demand — reconciled monthly, ready for tax and audit.

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Corporate tax & compliance

Corporate tax Indonesia filings, withholding and the compliance calendar, handled every month.

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Compare

Or consider instead

These do a similar job in a different way. Most people choose one, not both.

Foreign Company (PT PMA)

A PT PMA is the foreign-investment company: up to 100% foreign ownership, subject to your KBLI.

Learn more

Individual Company

A PT Perorangan is the one-founder company: an Indonesian citizen, registered electronically, no notary.

Learn more

Representative office

A representative office Indonesia permits with no capital requirement — presence, but no trading.

Learn more

Local Resident Shareholder

Local resident shareholder arrangements, explained honestly: what is lawful, documented and enforceable.

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Talk to someone who does this every day

A free 30-minute call. Bring the situation you are actually in, and you will leave with a clear view of what is involved.

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