A foreign-owned company in Indonesia is commonly referred to as a PT PMA – a Limited Liability company with foreign capital. It is a common and preferred company type or structure chosen by foreign businesses and investors, as it is designed to meet the legal requirements stipulated by the government.
Our Company Setup services cover advising on your eligibility to start a PT PMA based on the business sector you operate in and setting up your company in accordance with the latest regulations.
Establish a PMA Company in Indonesia: The Procedure
Step 1 – Approval of Company Name
It should consist of three words that are not vulgar or obscene.
Step 2 – Deed of Incorporation
It should include an Article of Association, and a notary must be present.
Step 3 – Approval of Legal Entity
After submission of Deed of Incorporation by the notary, the Ministry of Law and Human Rights will give approval.
Step 4 – Registration of Tax ID (NPWP)
A valid NPWP is required for securing other company’s licenses, banking activities, and fulfilling tax obligations.
Step 5 – Domicile Letter
Required to show the location of your business.
Step 6 – Application of NIB
Alongside NIB, Business License(s) and Location Permit will also be granted one day following the registration via OSS.
Step 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 PT PMA (Foreign-Owned Company)
Ability To Employ Foreigners
A foreign-owned company can sponsor and issue work KITAS for its international employees. It can also sponsor business visas for business partners and clients arriving in Indonesia for a short stay.
Own The Rights To Register Products
Register your products under your PT PMA to ease business operations in Indonesia, instead of relying on an Importer of Records
Own The Rights To Obtain License
With a PT PMA, your company will be able to apply for various business licenses to further diversify your business portfolio or investments.
Other Requirements Of Starting a PT PMA For 100% Foreign Ownership In Indonesia
Paid-Up Capital Amount
All PT PMA(s) are required to fulfill the minimum paid-up capital of IDR 10 billion. Shareholders of the company are required to sign off a Capital Statement Letter stating that the shareholders have sufficient funds to meet the required capital.
The Structure Of A PT PMA
As outlined in Indonesia’s Company Law, a corporate structure of a PT PMA consists of Shareholders, Board of Commissioners, and Board of Directors.
A Shareholder as the namesake states owns the company – they could be individual or corporate shareholders. They have the highest authority when it comes to decision-making. They could be an individual, company, or foundation. The PT PMA will also require a minimum of 1 Commissioner and 1 Director.
Stay on top of regulations with tailormade solutions to break into Indonesia. We’re here to help clients rethink structure & cost to deliver on business ROI.
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