Incorporation – Build Your Business Presence in Indonesia with XPND

XPND supports companies and investors in establishing business entities in Indonesia through a strategic and compliant approach, with a strong focus on capital planning, operational sustainability, and long-term expansion readiness.

With cross-industry experience and a deep understanding of Indonesia’s 2025 investment landscape, we ensure that the incorporation process is structured, transparent, and aligned with your business objectives.

XPND Incorporation Services

Through our incorporation services, XPND assists companies and investors in establishing business entities in Indonesia in a well-planned and professional manner. Each process is carried out with a structured approach that emphasizes the accuracy of entity selection, operational readiness, and administrative alignment with long-term business requirements.

PT PMA (Foreign Investment Company)

A solution for foreign investors who wish to operate commercially in Indonesia through a legally established corporate entity that is expansion-ready and aligned with the OSS-RBA supervision framework.

Under BKPM Regulation No. 5/2025, the latest provisions include:

• Minimum paid-up capital of IDR 2.5 billion
• 12-Month Capital Lock-Up period
• Capital utilization linked to investment realization & LKPM reporting
• Risk-based post-licensing supervision

Many foreign companies require strategic guidance to ensure that capital does not remain idle in the company account, but is instead allocated productively while remaining compliant.

XPND supports clients in planning:

• Capital allocation strategy during the lock-up period
• Initial operational funding
• Acquisition of assets and business facilities
• Expenditure documentation for audit and LKPM reporting purposes

For clients with certain investment values, PT PMA incorporation may also be integrated with; 5-10 Year Golden Visa for Corporate Directors and Executives

This allows the incorporation process to form part of a broader investment, mobility, and long-term business strategy.

PT PMDN (Domestic Investment Company)

A company establishment solution with 100 percent Indonesian ownership, aligned with capital classification based on business scale and domestic expansion needs.

Relevant for:

• Businesses operating in local sectors
• Entities categorized under MSME capital scale
• Companies participating in government procurement or tenders

XPND helps ensure:

• Capital structure aligns with business classification
• Compliance with OSS-RBA and applicable licensing requirements is maintained
• Corporate structure remains conversion-ready when foreign investors are introduced

When foreign ownership enters the shareholding structure, a PT PMDN is required to convert into a PT PMA. This transition requires careful legal and investment planning to ensure that the process remains structured and compliant.

Representative Office (KPPA – Foreign Company Representative Office)

A solution for foreign entities seeking a business presence in Indonesia without commercial activities or invoice issuance.

Suitable for:

• Market exploration and feasibility studies
• Business coordination and partner relations
• Establishing strategic presence prior to full investment entry

Important clarification:

• KPPA equals Foreign Representative Office
• it is not a Branch Office
• Branch Offices in Indonesia are restricted to specific sectors such as banking and oil & gas (Permanent Establishment / BUT)

For general business activities, the legally compliant structure is; KPPA as a non-revenue representative presence

XPND ensures that:

• Activity scope remains within legal boundaries
• Office domicile is valid and verifiable
• Documentation is prepared for administrative review processes

Virtual Office 

The XPND Virtual Office (VO) is designed to support modern business operations while ensuring tax compliance and valid business domicile status.

In line with PER-7/PJ/2025, our Virtual Office:

• Is eligible for VAT Registration (PKP status)
• Provides a physical desk/room allocation for tax verification
• Is suitable for service-based and consulting businesses
• Ensures the company can legally issue tax invoices

Many clients are concerned that Virtual Offices cannot be used as a recognized business address.

With XPND’s VO infrastructure, clients benefit from:

• A valid commercial business domicile
• Compliance assurance during inspection processes
• Operational cost efficiency without compromising legality

Company Restructuring

Corporate restructuring in Indonesia is now subject to a stricter supervision framework, particularly for amendments to company data such as:

• Changes in shareholding structure
• Appointment or replacement of directors and commissioners
• Capital restructuring and corporate actions
• Mergers, acquisitions, and internal reorganization

Under Ministry of Law and Human Rights Regulation No. 49 of 2025, these amendments are no longer processed through instant approval. They are now subject to a Mandatory Administrative Review period of 14 working days by the Ministry.

This review mechanism enables the authority to verify:

• Capital records and paid-up capital status
• Historical shareholder resolutions and corporate actions
• Beneficial ownership consistency
• Alignment of corporate data with OSS and tax records

For companies undergoing restructuring or corporate transactions, this process may potentially:

• Delay deal execution or transaction closing
• Postpone the legal effectiveness of corporate changes
• Trigger rejection in the SABH system if inconsistencies are identified

XPND supports clients through a pre-audit compliance review prior to submission to SABH to minimize these risks.

Our role includes:

• Reviewing articles of association, capital documentation, and historical resolutions
• Validating shareholder and management data against registry records
• Identifying gaps that may trigger review failure or administrative rejection
• Structuring supporting documentation according to the Ministry’s review standards

With this approach, restructuring is carried out in a measured, compliant, and transaction-safe manner, ensuring that corporate changes become legally effective without disrupting business continuity.

Why Choose XPND

We do not only assist in company formation, we serve as a strategic partner in building a business structure that is operationally ready and resilient through regulatory evaluation processes.

Our service strengths include:

• Transparent
  All processes are communicated clearly from the beginning, including service scope, process stages, and estimated completion timelines.
• Fast
  Document handling is managed through structured timelines with milestone tracking at every stage of execution.
• Experienced
  Our services are supported by professionals with strong corporate and consulting backgrounds, ensuring consistent execution quality and high analytical standards.
• Tech-Driven
  Every document and process stage is managed through an internal tracking system that enables clients to monitor progress in real-time.