How do foreigners decide on the proper entity in Indonesia?

Frequently Asked Questions

What is a PT PMA?

Limited liability company with foreign direct investment ranging from 1-100%

Should a foreigner deposit the minimum paid-up capital in a bank account to start a business in Indonesia?

It is advisable to make a minimum paid-up capital deposit after the company completes its establishment process. Another option is after the company receives the Articles of Association and Deed of Establishment.

How long does it take to set up a PMA company, and how soon can it begin commercial operations?

Establishing a PMA Company in Indonesia typically takes around two weeks after completing document requirements. Following establishment, additional steps such as obtaining licenses and registering for Tax ID vary based on business type. Last, some licensing processes may take time, necessitating thorough planning and preliminary assessments of the business plan for a smoother process.

How many incorporation types exist in Indonesia?

In Indonesia, there are three company types that you can establish based on your business nature, requirements, and preferences.

• Local Company (PT): 100% local ownership.
• Foreign Company (PT PMA): can be entirely owned by foreigners; however, restrictions in business sectors apply
• Representative Office: a branch of the parent company overseas whose purpose is to conduct marketing-related activities without generating income or profits