First, it is necessary to understand what the business will actually do: a café, villa management, retail store, consulting business, service agency, or another type of activity.

After that, it is necessary to check whether this activity is open to foreign investment. In Indonesia, not every business activity can be carried out by a foreign-owned company.

Then the correct KBLI must be selected. KBLI is the official business activity code. It tells the government what your company is legally allowed to do.

Once the business model and KBLI are clear, the PT PMA — a foreign-owned company — can be established.

After incorporation, the company is registered in Indonesia’s government online licensing system, OSS, and receives its NIB — the main business registration number.

After the company is established, it is necessary to check whether additional licenses are required. For real estate, vehicle rental, restaurants, tourism-related activities, and many other sectors, company registration alone may not be enough.

It is also essential to select the correct immigration status. If a foreigner manages the company or works for it, their KITAS must match their actual role.

After that, the company can open a corporate bank account, receive payments, pay taxes, and submit LKPM investment reports.