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Set Up a Limited Liability Company: Known as PT PMA in Indonesia

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A foreign-owned company in Indonesia, known as PT PMA, has been designed to meet the needs of foreign entrepreneurs. On the contrary to the incorporation process of a local company or a representative office, establishment of a foreign-owned limited liability company (LLC) in Indonesia might be more challenging and time-consuming.

The Negative Investment List stipulates the maximum allowed foreign ownership in particular business sectors, causing some industries to be fully closed or only partially open to foreigners. Therefore, having an expert partner in Indonesia or engaging professional assistance becomes a critical point to succeed when forming an international company in Indonesia.

Establish a PT PMA Company: The Procedures

Set up PT PMA in Indonesia - icon1Step 1 – Approval of Company Name
It should consist of three words that are not vulgar or obscene.

Set up PT PMA in Indonesia - icon2Step 2 – Deed of Incorporation
It should include an Article of Association, and a notary must be present.

Set up PT PMA in Indonesia - icon3Step 3 – Approval of Legal Entity
After submission of Deed of Incorporation by the notary, the Ministry of Law and Human Rights will give approval.

Set up PT PMA in Indonesia - icon 4Step 4 – Registration of Tax ID (NPWP)
A valid NPWP is required for securing other company’s licenses, banking activities, and fulfilling tax obligations.

Set up PT PMA in Indonesia - icon 5Step 5 – Domicile Letter
Required to show the location of your business.

Set up PT PMA in Indonesia - icon 6Step 6 – Application of NIB
Alongside NIB, Business License(s) and Location Permit will also be granted one day following the registration via OSS.

Set up PT PMA in Indonesia - icon 7Step 7 – Application of Other Licenses
Depending on the business sector, additional licenses such as commercial license and tourism license may be required before operation.

Benefits of a Foreign-Owned Company

Although the establishment process is more demanding, foreign-owned companies offer vital benefits that entirely compensate the previously invested time and efforts.

Employment of Foreign Workers

A foreign-owned company can sponsor and issue work permits as well as stay visas (working ITAS) for its international employees.

Furthermore, this kind of company is allowed to sponsor business visas of its business partners and clients arriving in Indonesia for a short stay.

Full International Ownership

To attract more foreign investors and multiple investments critical to the Indonesian economy, Indonesia has been relaxing the limited foreign ownership lately.

Wholly-owned foreign companies became less rare, and it is, therefore, likely that you can start an international company without any partnership or local shares of your property.

Limited Liability Company Registration in Indonesia with Cekindo

Joint Venture

joint venture - iconIn case, the business sector in which you intend to incorporate a company does not offer independent international ownership, we suggest opting for a limited liability company registration through a joint venture with a local partner — Cekindo.

This process will give investors the full control over the management of their company, no restrictions related to business fields, and minimise risks of setting cooperation with an unreliable partner.

Assistance and Consultancy

consultation - iconWhether additional licences are required in your business field, the government issued a new regulation related to your business plan, or if the joint-venture agreement contains all crucial points, you will get to know it straight away with the assistance of Cekindo.

We will not only advise you on the incorporation process but also lead the whole procedure independently on your behalf.

Let us guide you through the limited liability company registration process in Indonesia and achieve the best results promptly. Fill in the form below or visit us in one of our offices located in Jakarta, Semarang or Bali, and we will get back to you with a free quotation on your business.

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Selected Testimonials

  • Tim Stewart - Photo

    I would like to acknowledge the exceptional service that PT. Cekindo Business International provided to me and my company. I needed to attend a meeting in Jakarta in October 2020 and because of the COVID-19, there were some restrictions with regard to visa application. I made the right decision by consulting with the visa team at Cekindo. The application process was expertly handled. The team ensured the visa was issued well ahead of time for my trip. I would recommend PT. Cekindo Business International to anyone looking for expert help in managing the visa application process.

    Tim Stewart
    Northern Territory Building Consultancy
  • logo-PT-Asia-Victory

    Prior to choosing Cekindo as our business partner in Indonesia, we interviewed and compared several companies. Finally, we chose to cooperate with Cekindo because of its professionalism and quality. Cekindo has assisted us in many ways, from company certification application to KITAS application and financial statement compliance to the fulfillment of other tax obligations in Indonesia. We appreciate the team’s fast response and professionalism in preparing the financial statements, among others.

    Doris Chen
    PT. Asia Victory and PT. Bigger One
  • logo Toaster

    When I joined Toaster, it was already working with Cekindo. But it’s quick to see why Toaster chose Cekindo. Cekindo has been very helpful throughout. Toaster Headquarters is based in London. Indonesian tax laws are not our specialty. Cekindo’s team has helped us to understand Indonesian tax. They are very knowledgeable and dependable, and therefore a huge asset to our company.

    Tsui-Sie Wong
  • logo Ohmnia

    As a new business in Indonesia, we started consulting with multiple law firms but quickly narrowed down to only Cekindo. Cekindo was recommended as one of the top firms by multiple sources in the business community. The staff at Cekindo was very responsive to our needs as a new business. The team provided consultancy and assisted our startup firm with initial business setup, licenses and permits, HR/recruitment and market research. One year since our establishment, we still consider Cekindo as our partner.

    PT Ohmnia Tenaga Surya
  • Jan Pilar - Hydropol

    When we intended to enter the Indonesian market back in 2013/14, Cekindo helped us to understand the possibilites and options for business presence in Indonesia through legal advice & also advisory on how to arrange for ownership. Furthermore, Cekindo also provides us with a range of fully professional and reliable accounting & tax services for our representative office in Indonesia. In the world of digital & virtual economy like today, it is an essential prerequisite to have the most reliable business partner like Cekindo.

    Jan Pilař

Selected Clients


Frequently Asked Questions

I would like to expand my business to Indonesia. Can I set up a company there as a foreigner?

Is a foreigner able to become a director or commissioner?

Will the government check if I have fulfilled the investment plan of IDR 10,000,000,000?

I want to set up my company as soon as possible, is there some way to speed up the registration process?

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