company registration semarang

5 Things to Know about Setting Up A PT PMA in Semarang

  • InCorp Editorial Team
  • 19 August 2019
  • 5 minute reading time

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.

What is PT PMA?

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.

company registration semarang with cekindo

Benefits of PT PMA Establishment in Semarang

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.

Requirements for Setting up a PT PMA in Semarang

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.

How to Set up a PT PMA in Semarang

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:

  • Obtain Deed of Establishment in accordance with the NIL.
  • Acquire a domicile letter and a tax identification number (NPWP).
  • Register your legal entity via the Online Single Submission (OSS) System, and then get the business identification number (NIB) to operate.
  • Apply for additional licenses based on your business sector or business activities. For instance, operational license and commercial license.

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

Company Registration in Semarang with Cekindo

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.

Get in touch with us today by filling in the form below or visit us directly in our office. Our other offices are also available in Jakarta and Bali.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.

It should take between 30 to 45 days.