For those considering setting up Indonesian business in this vibrant archipelago, understanding the specific legal avenues is paramount. The primary structure for foreign direct investment in Indonesia is the PT Penanaman Modal Asing (PT PMA), a limited liability company specifically designed for foreign ownership.
While Indonesia offers significant potential, a successful market entry necessitates thorough research, a clear understanding of its unique business environment, and expert guidance.
How We Smooth the Path in Setting up Indonesian Business
As we explained in our How to Set up a Business in Indonesia article, there are key stages of establishing a PT PMA. Here’s how our team of experts at Bali Business Consulting helps you through them:
Step 1: Key Requirements
Business Classification
DNI list details restricted business categories and permissible foreign ownership percentages. We have the expertise to correctly interpret the DNI, helping you understand which business fields are open, restricted, or closed to foreign investment.
Minimum Investment and Capital
An investment plan and a paid-up share capital are required. We guide you through these financial requirements, ensuring compliance with the stipulated amounts.
Shareholder Structure
A PT PMA mandates a minimum of two shareholders, with designated roles for a director and a commissioner. While neither needs to be Indonesian, the director must hold a valid stay permit (Investor KITAS or Working KITAS) and a Taxpayer Identification Number (NPWP).
We assist in structuring the shareholding and obtaining the required stay permit (KITAS) and NPWP for the appointed personnel.
Compliant Business Location
Finding a business location with the necessary commercial permits is vital, as taxes are reported locally. We offer solutions like a virtual office which provides a registered address and can significantly expedite the setup process by bypassing the immediate need for a physical office lease and associated local permits.
Step 2: Company Name and Deed of Establishment
This initial step involves selecting a compliant company name and formally establishing the company through a notarized Deed of Establishment, which must then be ratified by the Ministry of Law and Human Humans.
We assist by ensuring the proposed company name meets the specific formatting requirements and checking its availability to avoid rejections. We also coordinate with a public notary to accurately draft the Deed of Establishment according to Indonesian law and ensure its proper notarization and official ratification.
Step 3: Taxpayer Identification Number
Acquiring NPWP for the company from the local tax office is a mandatory step for tax compliance. We assist in this stage by managing the application process and ensuring all necessary forms and documentation are correctly prepared and submitted to successfully obtain the company’s NPWP.
Step 4: OSS Registration
The OSS system is the central platform for business registration, leading to the issuance of the Business Identification Number (NIB).
Our role as your consultant is vital in guiding you through the online OSS platform, which can be complex for first-time users. We also ensure all company details and relevant information are accurately input into the system to avoid delays or errors. Our assistance continues throughout the NIB acquisition.
Step 5: Licenses
The final step involves obtaining operational and commercial licenses required based on the business’s location, classification, and office space. Certain sectors may also need additional approvals. Our team assists by determining the specific licenses necessary for the company’s particular business activities.
We also help manage the application process and navigate through the potentially time-consuming process of additional approvals, such as the Alcohol License for Hospitality.
Why Choose Us
As a team of experts based in Bali, we specialize in guiding foreign investors through every stage of the PT PMA setup. Bali Business Consulting helps you understand the nuances, meet the formalities, and build a solid foundation for your success in Indonesia.
Let’s make your journey in setting up Indonesian business a smooth and successful one!
