How to Start a PT PMA in Indonesia
(Foreign-owned Company)

PT PMA (a foreign-owned company) is a favored choice among foreign entrepreneurs and investors, as it is specifically designed to meet the legal requirements of Indonesia.

Establish a PT PMA in Indonesia: The Procedure

InCorp Indonesia provides services, including advising on your eligibility to start a PT PMA based on your business sector and company establishment under applicable regulations.

Approval of Company Name

The requirement is for three words that are neither vulgar nor obscene.

Deed of Incorporation

To adhere to the regulations, including an Article of Association and having a notary present is necessary.

Approval of Legal Entity

Upon the notary’s submission of the Deed of Incorporation, the Ministry of Law and Human Rights will approve.

Registration of Tax ID (NPWP)

A valid NPWP is required for securing other companies’ licenses, banking activities, and fulfilling tax obligations.

Domicile Letter

You must provide a domicile letter to indicate the location of your business.

Application of NIB

Along with the NIB, business and location permits will be issued one day after registration through Online Single Submission (OSS).

Application of Other Licenses

Depending on the business sector, additional licenses, such as commercial and tourism, may be required before operation.

The Advantages of Establishing PT PMA in Indonesia

Ability To Employ Foreigners

PT PMA (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.

Own The Rights To Obtain License

With PT PMA, your company can apply for various business licenses to diversify your business or investment portfolio.

Other Requirements for Establishing a PT PMA in Indonesia

Paid-Up Capital Amount

All PT PMA(s) must fulfill the minimum paid-up capital of IDR 10 billion. In addition, 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.

Structure of PT PMA

  • The PT PMA structure consists of Shareholders, a Board of Commissioners, and Directors, with a minimum of 1 Commissioner and 1 Director.
  • As the namesake state owns the company, shareholders can be individual corporate or foundations.
  • Shareholders have the highest authority in decision-making.

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