Do you have an outstanding business plan and want to start a company in Semarang? No wonder, many foreign investors are attracted to Semarang because it is a great city in Indonesia with abundant resources, strategic location, and bountiful workforce. To start your business, you need to know that the company registration process is among the early steps you need to take in Semarang.
A popular option among foreign entrepreneurs is setting up a PT PMA in Semarang. However, it may be a daunting prospect if you’re not familiar with the local laws and regulations. But, if you get it right, it can be an enjoyable and lucrative one.
This article elaborates the 5 things you need to know about setting up PT PMA in Semarang, read before you make the dive.
PT PMA stands for Perseroan Terbatas Penanaman Modal Asing in Indonesian language. All foreign-owned companies in Semarang and entire Indonesia are considered as PT PMA. It is a limited liability company set up with the injection of foreign capital.
No matter how many shares you own as a foreigner in a business – it can be from 1% to 100% — the business is deemed a foreign-owned company under the Indonesian Company Law.
Please do keep in mind that the percentage of foreign ownership depends greatly on the business classification under the Negative Investment List (NIL). While some business sectors are 100% open to foreign ownership in Semarang, some of them are partially closed or fully closed to foreign investments. Foreigners are advised to keep themselves updated on the NIL as it is often revised, usually once every three years.
The incorporation process of a PT PMA is more demanding than a local company. However, the many benefits that a PT PMA provides outweigh its more complex procedure of establishment. The most alluring benefits are:
PT PMA can Employ Foreigners
A PT PMA in Semarang can sponsor work permits and working ITAS (stay visas) for their foreign employees. In addition, a foreign company in Semarang is permitted to provide business visa sponsorship for their business partners for a short stay in Semarang or Indonesia.
Apply for an Indonesian business visa online to avoid a complicated process.
Foreigners can Have Full International Ownership
Recently, the government of Indonesia has made foreign ownership easier as compared to years ago. Therefore, it is now more common for foreign investors in Semarang to own an international business with 100% ownership without having to partner with local businesses.
Here are the important requirements that foreign business owners need to fulfill before they can set up a PT PMA in Semarang:
Paid-up Capital
IDR 10 billion is the minimum paid-up capital to set up a PT PMA in Semarang. Foreigners can either sign a letter of capital statement, indicating that they have enough money for the capital upon the incorporation or transfer the money to the company bank account.
Location of Business
Foreigners must provide a business address before submitting the company registration application.
Shareholders, Commissioners, and Directors of PT PMA
A PT PMA in Semarang requires a minimum of two shareholders, one commissioner, and one director.
The new regulation No. 24/2018 that has taken effect since June 2018 has simplified and sped up the incorporation process of a PT PMA. Below is a summary of the PT PMA setup process in Semarang:
The entire registration and establishment process, including all procedures, takes 4 to 6 weeks.
| No. | Procedure | Duration (working days) |
|---|---|---|
| 1 | Approval of company name at the Ministry of Law and Human Rights | 1 |
| 2 | Preparation of Article of Association by Notary | 3 |
| 3 | Approval of Deed of Establishment at the Ministry of Law and Human Rights | 3 |
| 4 | Obtaining Taxpayer Registration Number | 2 |
| 5 | Obtaining Certificate of Domicile from the local district office | 10 |
| 6 | Approval of Business Registration Number (NIB), Business Permit, Commercial/Operational Permit, Location Permit, Environmental Permit, and BPJS through the Indonesian Online Single Submission (OSS) System | 2 |
Cekindo is a professional business consulting firm that assists investors in establishing their business successfully across Indonesia including Semarang, Jakarta, Bali, and many more. With our unparalleled knowledge and expertise, let us guide you through the company registration process in Semarang.
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