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Monday-Friday: 10am – 6pm
Jl. Raya Pantai Berawa No.46 x
Office Bukit +62 817 745 858
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Jl. Raya Uluwatu no 279, Ungasan

PMA (Foreign Investment) Company

For the past decade, Indonesia has become one of the most popular investment destinations. In terms of foreign-owned businesses, Bali is especially under the spotlight of potential shareholders.

PT PMA is the main license regulating foreign investors activities. It is suitable for projects of any size and investors do not face any limits in their inceptions. Setting up requires a closer look at the Indonesia-based ownership regulations due to the range of limitations.

Bali Business Cinsulting | Company Registration

What is considered a foreign-owned company in Indonesia?

Any organization that is invested by foreign contributors (even in case of 1% of foreign-owned share) is considered foreign-owned one. Indonesian regulations allow foreign direct investments according to 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 a representative office instead.

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 are 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.

How to Set Up a PT PMA in Indonesia

A detailed guide for entrepreneurs

First of all, the below requirements should be met:

  1. Paid-up share capital of $175,000. The sum can vary according to the Rupees and Dollar exchange rate and foreign-owned projects should obtain 2,5 billion of Rupees or more.
  2. Capital statement letter. Each shareholder should sign the special document that allows all the investment campaign participants to specify deposits, bank account for contributions.
  3. There is a minimum of 2 shareholders required.
  4. Personnel requirements. The directory of the company should include at least one resident of Indonesia. If the director is the only one, he/she could not be non-resident and in that case one more chief representative is required – a commissioner. This position can be taken by non-residents.
  5. Business location. You need to prepare some documentation on the grounds of your overseas company location. Choose your physical address and get local permissions.

There is an option to start the establishment process online with the help of the special OSS program (Online Single Submission). The approximate time of waiting for establishment competence is several weeks.

Algorithm of PT PMA Setting-Up

Our company is a reliable assistant in the matter of the foreign-owned company establishment with 10 years of experience.

Here is a five-step algorithm we use and of course, clients are assisted on each step:

  • Our experts will help you to choose the right business classification in order to get the maximum allowed percentage of ownership.
  • We will help you to obtain the necessary permission from the local government – SKTU letter (Domicile Letter).
  • You will 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.

Assistance and Consultancy

Some projects require supplementary documentation and permissions. Do not hesitate to contact us for consultations regarding all the peculiarities of the Indonesia-based investing campaign establishment. When you complete the PT PMA setting-up process, you get a huge range of opportunities like property purchases, staff recruitment, and many other activities.

We will be pleased to assist you in your business endeavors.

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