Establishing a partnership (firma) in Indonesia is relatively easy, but it still requires clear legal steps to ensure the business is recognized by the state. A partnership is a form of business association, not a legal entity, meaning each partner is personally liable for the company’s obligations.
This article explains the requirements and procedures for establishing a partnership.
Read Also: Legal Basis of Partnerships in Indonesia: Complete Guide
Requirements for Establishing a Partnership
Key requirements:
- At least two Indonesian citizens (WNI) aged 17 or older.
- A unique partnership name that has not been used before.
- A clear business purpose according to KBLI.
- A valid business address (domicile).
- Initial capital recorded in the deed.
Required documents include ID cards (KTP), founders’ tax IDs (NPWP), passport photos, business domicile, property tax (PBB) if using a private address, and company contact details.
Read Also: Types of Partnerships in Indonesia: Complete Guide
Procedures for Establishing a Partnership
Name Reservation
Choose a unique name and apply through the Ministry of Law and Human Rights (SABU system).
Notarial Deed Preparation
A notary drafts a deed in Indonesian containing the founders’ identities, business objectives, capital, and profit-sharing agreement.
Signing the Deed
All partners must be present to sign the deed.
Registration with the Ministry of Law and Human Rights
Conducted online via the AHU system, resulting in a Certificate of Registration (SKT).
Licensing
- Partnership NPWP
- Tax Registration Certificate (SKT) from the Tax Office (KPP)
- Business Identification Number (NIB) via OSS-RBA
Company Bank Account
Once legalized, the partnership can open an official bank account under the business name.
BPJS Registration
If employing workers, registration with BPJS Employment and BPJS Health is mandatory.
Establishing a partnership in Indonesia is suitable for small to medium-scale businesses, especially in professional service sectors. However, founders must be prepared for the full liability risk inherent in this business form.
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FAQ
What is a partnership (firma)?
A partnership is a business association formed by two or more people under a shared name and is not a legal entity.
What is the minimum number of partners?
At least two Indonesian citizens aged 17 or older.
Is a partnership required to have a tax ID (NPWP)?
Yes, every partnership must have a tax ID for tax purposes.
Is there a minimum capital requirement?
No minimum capital requirement, but the amount must be recorded in the deed.
Can a partnership use a virtual office address?
Yes, a virtual office can be used as a valid business domicile if it complies with regulations.
