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

5 Things to Know about Setting Up A PT PMA in Semarang Review by tenissa.tjahjono on 19. 8. 2019 Company Registration in Indonesia, Market Research in Indonesia, Work Permit in Indonesia, Product Registration in Indonesia, Local Partner Selection in Indonesia, Trade Mission in Indonesia, Company Formation in Indonesia, Company Establishment in Indonesia, Company Set Up in Indonesia, Payroll Outsourcing in Indonesia, Tax Reporting in Indonesia, Medical Product Registration in Indonesia, Medical Device Registration in Indonesia, Cosmetic Registration in Indonesia, Food Supplement Registration in Indonesia.
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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 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 the 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 ownerships 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.

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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 permit 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 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 2.5 billion or US$175,000 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 you 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 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.

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.