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Money Required to set-up new local company PT

At least 50 Million IDR, however, depends on the nature of the business (Authorized Company)
Transferred 25% of your money to the bank under the company’s name (Paid Capital)
The money on the bank is not locked and can be used for company expenses
Have at least 500 Million IDR to hire a foreign worker

What if I don’t necessarily have 50 Million IDR, to begin with?

The authorized capital for local company shall be at least 50 Million IDR and at least 25% of it needs to be transferred into the company’s bank account. 

But the minimum amount of authorized capital may have been ruled out, due to the issuance of the Government Regulation No. 29 of 2016, stating that the authorized capital shall be based on the agreement of the prospective founders 

(except for companies that run is a certain business activity). 

That means you can actually set up a company with less than 50 Million IDR as the authorized capital, with 25% of the agreed capital goes to the company’s bank account.

Business will be classified based on the authorized capital,


  • Micro: less than 50 Million IDR 
  • Small: 50 Million IDR to 500 Million IDR 
  • Medium: 500 Million IDR – 10 Billion IDR 
  • Large: More than 10 Billion IDR

VROffices can legally assist in creating a company without sufficient authorized capital and will guide through this complex process. 

Note: Only Medium & Large size businesses can hire a foreign worker.

Is the authorized capital needs to be in the form of money?

Authorized capital can both be in the form of cash money assets or non-cash money assets in the bank account. 

However, Non-cash money assets need to be appraised by an expert for a reasonable value based on the current market prices. 

The expert should be an independent authority, not associated with the company or any shareholder.

Note: If your company wishes to include other assets or increase the amount of the capital, establishment deed must be modified to reflect the changes.

When to transfer the Paid Capital?

The Paid Capital should be transferred at least 14 days after the Establishment Deed has been signed.

It needs to be paid fully and proven by lawful evidence. It also can be in a form of Capital Statement Letter. 

Capital Statement Letter is basically a letter confirming that the investors have sufficient funds and It needs to be signed by all the shareholders.

Can I Use paid capital for working expenses?

The main idea of Paid Capital is to prove that the company shareholders have sufficient funds to run the company. 

So, after the paid capital is transferred, paid capital won’t be locked in the bank. It can be used to pay company expenses such as pay employee salaries, office rentals etc. 

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