PT PMA (Foreign Investment) Company

For the past decade, Indonesia has become one of the most popular investment destinations. Of course, Bali is especially under the spotlight of potential shareholders. More and more foreign investors come to Bali to set up business here and get the best business opportunities that Indonesia can offer now.

How a foreigner can register a business in Indonesia?

To register a business in Indonesia as a foreigner, you would typically need to establish a PT PMA (Perseroan Terbatas Penanaman Modal Asing) company. This type of company is specifically designed for foreign investors looking to conduct business activities in Indonesia. The PT PMA license is suitable for projects of any size, providing a legal framework for foreign investment.

• What is considered a foreign-owned company in Indonesia?
• Requirements for PT PMA in Indonesia
• How to Set Up a PT PMA in Indonesia
• Temporary Stay Permit that can be made with PMA
• How much does it cost to open PT PMA company in Indonesia?
• Contact Us

What Is Considered a Foreign-Owned Company In Indonesia?

Any organization that receives investment from foreign contributors, even if it is as little as 1% of foreign-owned shares, is considered a foreign-owned entity. Indonesian regulations permit foreign direct investments under the PT PMA license.

However, if you aim to only represent an overseas company in Indonesia and you will not generate any income from local activities, you can set up  Representative Office instead.

You could check the list of restricted business projects in the Indonesian DNI (Negative Investment List) in order to get data about limitations to the business classification you have chosen. There are numerous international companies on the territory of Indonesia that did not use the attraction of the local investments.

How To Set Up a PT PMA In Bali, Indonesia

The following documents are required to open a company:

1. Company name (3 words)
2. Areas of activity to be carried out (up to 5 activities)
3. Business address, phone number, email
4. Scanned version of the first page of the passport of all founders and a 3×4 photo
5. Directors and shareholders structure
6. Lease Agreement/Land Certificate (if available)*

*it’s not required for registering a Virtual Office

The main steps of the process (clients are assisted on each step):

• Your ongoing business inspection. In order to pass the first stage, we recommend paying attention to the business classification. This is the main aspect at the starting of the project. Our experts will help you to choose the right class and get the maximum allowed percentage of ownership.
• Prepare action of local documents. If you want to create an Indonesia-based overseas company, special permission from the local government is required. This document is called SKTU letter (Domicile Letter).
• Tax registration. You need to visit or contact your tax office and get the NPWP number (tax identification number).
• Registration in the OSS system. As we have mentioned before, the registration of legal entities is available online. You should fill up the One Single Submission form to get the NIB (Nomor Induk Berusaha) number. It is a must because it is used as the main documentation for other purposes (it is your import license, business registry number, etc.).
• The last step of the company establishment is getting operational and commercial licenses. The process is very fast and takes place the same day the NIB number is obtained.

Temporary Stay Permit That Can Be Made Under PT PMA

1. Investor Kitas
Requirements: the investor should have 1 billion IDR in shares (can be a CEO, commissioner or shareholder). Read more >>

2. Working Kitas
Requirement: the company can be a sponsor in accordance with the position determined by a director of the company (the position also must be in accordance with the company line of business). Read More >>