How to register a business in Indonesia from Pakistan — step by step, fully remote, from USD 1,000.
Indonesia has emerged as one of the top destinations for Pakistani business investors, and for good reason. With a population of 270 million — making it the world's 4th most populous country — and a rapidly growing middle class, Indonesia offers market access that few countries can match.
Beyond economics, Indonesia and Pakistan share strong historical, cultural, and religious ties. Both nations have large Muslim-majority populations, and business relationships between Pakistani and Indonesian entrepreneurs have flourished for decades in sectors including textiles, food and beverage, trading, technology, and professional services.
As Pakistan's economy faces increasing pressure from currency volatility and limited export growth, many Pakistani entrepreneurs are looking to establish a second business base — and Indonesia consistently ranks among the top choices.
Yes — absolutely. Pakistani nationals have full rights to register and own a PT PMA company in Indonesia. There is no restriction whatsoever on Pakistani investors. You can:
IndoDesk has helped over 1,200 clients from Pakistan, India, UAE, and beyond register PT PMA companies in Indonesia. Our team includes Urdu-speaking advisors who can guide you through every step of the process.
Pakistan and Indonesia signed a Double Taxation Avoidance Agreement (DTAA) that provides significant tax benefits for Pakistani investors operating in Indonesia. This is a major advantage over investing through countries that lack such a treaty.
| Type of Income | Standard Indonesia WHT | Treaty Rate (Pakistan) |
|---|---|---|
| Dividends (to corporate shareholder) | 20% | 10% |
| Dividends (to individual shareholder) | 20% | 15% |
| Interest | 20% | 15% |
| Royalties | 20% | 15% |
| Capital Gains (immovable property) | Standard rate | Taxable in source country |
The treaty also includes provisions for the exchange of tax information between the two countries, mutual agreement procedures for dispute resolution, and protection against discriminatory taxation of Pakistani nationals in Indonesia.
In practice: If you earn dividends from your Indonesian PT PMA company as a Pakistani resident, the withholding tax applied in Indonesia is 10-15% (treaty rate) rather than 20% (standard rate). This saved amount improves the effective return on your Indonesian investment.
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the only legal entity in Indonesia that allows foreign nationals — including Pakistanis — to own equity. Without a PT PMA, you cannot legally operate a business in Indonesia as a foreigner.
Alternative structures that Pakistani investors sometimes consider, and why they don't work:
The PT PMA is the right structure for Pakistani investors who want to legitimately own and operate a business in Indonesia.
To register a PT PMA from Pakistan, you need to prepare the following documents. All documents must be apostilled since Pakistan is a signatory to the Hague Apostille Convention.
Apostille in Pakistan: Pakistani documents can be apostilled through the Ministry of Foreign Affairs (MOFA) in Islamabad, or through authorised agents in Karachi and Lahore. The process typically takes 3–7 working days and costs approximately PKR 5,000–15,000 per document depending on the agent.
Once your PT PMA company is registered, you — as a director or shareholder — are eligible to apply for an Investor KITAS (Kartu Izin Tinggal Terbatas). This is Indonesia's investor work and residency visa, and it is one of the most significant benefits of owning a PT PMA.
Pakistani nationals can apply for Investor KITAS without any additional restrictions. Indonesia does not impose special visa conditions on Pakistani passport holders for investor visas. The application is processed by the Directorate General of Immigration in Jakarta.
Once your PT PMA is registered, you can open a corporate bank account at any major Indonesian bank. Popular options include BCA (Bank Central Asia), Bank Mandiri, BNI, and BRI. Many Pakistani investors prefer BCA for its international transfer capabilities and English-language online banking.
Bank account opening typically requires your physical presence in Indonesia — most banks require the Director to appear in person. However, IndoDesk can assist with:
| Service | Cost (USD) | Timeline |
|---|---|---|
| PT PMA Full Registration | From USD 1,000 | 7–8 business days |
| Apostille (Pakistan MOFA) — approx. | USD 50–100 | 3–7 days in Pakistan |
| DHL courier Pakistan → Indonesia | USD 30–50 | 3–5 days |
| Virtual Office (Jakarta, 1 year) | USD 300–500 | Same day |
| Investor KITAS | From USD 1,500 | 4–7 business days |
| Dependent KITAS (family) | USD 350/person | After main KITAS |
| Annual Compliance Package | USD 800–1,200/year | Ongoing |
Total to get started (registration + virtual office): From USD 1,300–1,500. This makes Indonesia one of the most cost-effective jurisdictions in Asia for foreign company incorporation.
Can a Pakistani citizen own 100% of an Indonesian company?
Yes. Pakistani nationals can own 100% of a PT PMA company in Indonesia in most business sectors. Indonesia's Positive Investment List allows full foreign ownership in areas including technology, consulting, trading, education, healthcare, and many more. Some sectors (media, natural resources, some financial services) have foreign ownership caps — IndoDesk checks this for your specific business.
Do I need to travel to Indonesia to register a company?
No. 100% remote registration is possible. You notarise and apostille a Power of Attorney in Pakistan, send it to IndoDesk in Jakarta, and we handle all steps in Indonesia. The only step that may require a visit is corporate bank account opening — but IndoDesk can coordinate this during your Investor KITAS application trip.
Can I get an Indonesian residency visa as a Pakistani investor?
Yes. After registering a PT PMA, you are eligible for an Investor KITAS — Indonesia's investor work and residency visa. It gives you the legal right to live and work in Indonesia. Processing takes 4–7 business days through IndoDesk and costs from USD 1,500. Pakistani nationals face no special restrictions for this visa. Read the complete Investor KITAS guide →
Does Indonesia have a tax treaty with Pakistan?
Yes. Indonesia and Pakistan have a Double Taxation Avoidance Agreement (DTAA). It reduces withholding tax on dividends to 10-15% (down from the standard 20%), on interest to 15%, and on royalties to 15%. This treaty protects Pakistani investors from being taxed twice on the same income.
Is there Urdu-language support for Pakistani investors at IndoDesk?
Yes. IndoDesk offers full Urdu-language support for Pakistani clients. Our Pakistan Desk team can communicate with you in Urdu throughout the registration process, from initial consultation through to company incorporation and beyond.
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