Indonesia has emerged as one of the top investment destinations over the past decade, with Bali being a prime focus for potential investors. Increasingly, foreign entrepreneurs are choosing Bali to establish their businesses and capitalize on the unique opportunities Indonesia offers.
COMPANY ESTABLISHMENT (PT PMA)
How a foreigner can register a business in Indonesia?
Foreign investors can establish a PT PMA (Perseroan Terbatas Penanaman Modal Asing) Company, a legal entity designed specifically for foreign-owned businesses in Indonesia. This structure accommodates projects of any scale and provides a solid legal framework for conducting business in the country.
Limitations for Overseas Company
Indonesian legislation regulates the maximum allowed foreign ownership. According to the business classification, the percentage of closed and open investments together with asset allocation varies:
- some businesses are allowed 100% of open investments, both for national and foreign investors;
- another group of overseas projects is allowed closed contributions only;
- some business categories require specified percentage rates (for example, 10 % of open investments and 90% of closed ones).
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.
The Main Requirements for PT PMA in Indonesia
How To Set Up a PT PMA In Bali, Indonesia
The following documents are required to open a company:
- Name of the company (must consist of 3 words, with a minimum of 3 letters per word).
- Copy of shareholders’ and board of director’s/commissioner’s passports.
- Information regarding share composition between shareholders, e.g., 50-50%
- Information regarding appointed directors and commissioners.
- Email and local phone number of the company (if you don’t have one yet, we can assist with email registration and purchasing a SIM card at no cost).
- Confirmation of company address (please provide any of the documents below):
– Copy of the office rental agreement.
– Copy of the land certificate
– Copy of the IMB (Building Permit)
If you use our virtual office service, you do not need to provide proof of your company address.
The main steps of the process:
- Business Classification Review:
At the initial stage, the business classification is reviewed to ensure compliance with regulations and to determine the maximum allowed percentage of foreign ownership. - Preparation of Local Documents:
For establishing a foreign-owned company in Indonesia, special government approval is required. This document is known as the SKTU Letter (Domicile Letter). - Tax Registration:
The NPWP (Tax Identification Number) is obtained from the local tax office to ensure compliance with tax regulations. - Registration in the OSS System:
Legal entities are registered online via the One Single Submission (OSS) system. This step includes obtaining the NIB (Nomor Induk Berusaha), which serves as essential documentation for various purposes, such as an import license and business registry. - Issuance of Operational and Commercial Licenses:
After the NIB is issued, operational and commercial licenses are obtained on the same day, completing the company establishment process.
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 sponsor a position determined by its director, provided that the position aligns with the company’s line of business. Read More >>
OUR SERVICE & PRICE
Low-Risk Business Activity
- Cost: IDR 25,000,000 (one-off payment)
- Virtual office as a place of registration (if needed): IDR 6,500,000 yearly.
- Processing time: 1-2 weeks, not including public holidays and days off.
Additional fee for License starting from IDR 15,000,000
Middle High-Risk Business Activity
- Cost: IDR 45,000,000 (one-off payment).
- Virtual office as place of registration (if needed): IDR 6,500,000 yearly.
- Processing time: 1-2 weeks, not including public holidays and days off.
Additional fee for License starting from IDR 15,000,000
Assistance and Consultancy
Please feel free to reach out to us for consultations regarding the establishment of PT PMA company in Indonesia. We are here to assist you and provide guidance on all the intricacies involved. Our experienced team will demonstrate that the company set-up process can be both simple and straightforward.
To request a consultation, kindly fill out the form by clicking on the button below. This will enable us to match you with the most suitable specialist based on your specific requirements.
