The advantage of setting up an Indonesian PT PMA company is that it is the preferred legal form for foreign businesses to operate and earn income in Indonesia. However, the drawback is that due to its global market status, the required start-up capital is high and not all business sectors are eligible. An initial investment of 700,000 USD is necessary with an estimated 10-week incorporation period, which may vary on a case-by-case basis.
While a minimum investment of IDR 10 billion is stated, this refers to the total investment over 5 years of operation, not just at the time of incorporation. The start-up capital requirement is not necessarily the full IDR 10 billion.
The limitation of PT PMA company registration in Indonesia is that foreign ownership is restricted in some business sectors.
These are the required documents for incorporating a PT PMA company in Indonesia :
Documents are required :
Documents are required :
| Steps involved in the process. | Organization |
|---|---|
| Approval of company name with 3 words. | Ministry of Law and Human Rights. |
| Review, Revision, and Approval of Temporary Principle License. | BKPM |
| Company Constitution (AKTA) | Notary Public |
| Legalizing the Legal Entity (Establishment Deed/Judicial Decree) | Ministry of Law and Human Rights |
| Accounting And Gov't Compliance Service | USD350/month |
| Work Permit Document Preparation & Application | USD800/person |
| KITAS Application | USD800/person |
| Change Director | USD350 |
| Change Shareholder | USD350 |
The most common type of legal entity in Indonesia is the limited-company, which is similar in structure to the Limited Liability Company (LLC) in the USA. A limited-company in Indonesia must be owned by at least three shareholders and managed by at least one Director. An Indonesia Limited-Company also means that 51% of the company shares must be held by Indonesia citizens and the remaining shares can be held by anyone including foreigner or a foreign registered entity. In spite of this regulation, it is common for foreigner to use an Indonesia friend or a professional nominee for hold their shares on their behalf and through carefully planned structure (which we will help you with) the foreigner can still have controlling interest in the company and the bank account.
An Indonesia limited-company is a legally stand-alone entity under the Indonesia law and this protects you from unlimited liability. Unlike other countries, in Indonesia only the Director(s) is authorized to sign on behalf of the company and individual shareholders are only liable to their percentage of shares.
If you would like to setup a Limited Company where the majority of its shares are owned by foreigner, you've 3 options and we can also help you with it.
There is actually no minimum capital required to setup a company in Indonesia but we would recommend at least Two Million Baht as this is the minimum required capital to allows your company to employ foreigner and sponsor a work permit.
Having said that, you do not need to have this amount of money in your bank before you can register your company. Minimum paid-up amount capital is 25%, which can be used as working capital. If you are establishing a company to hold properties only, then you only need to have One Million Baht as the capital.
If you require a local Director to act on your behalf, please read below.
It's an professional engagement of an individual that passes a police background check and is not bankrupt to be acting on your behalf as your company Director. Many formal documents and decisions made by an Indonesia Limited Company must be manually signed (e-signature is not accepted yet) by the company Director and if you are a foreigner who may be flying in and out of the countries, Director-as-Service is here to help you operate your company in Indonesia smoothly.
A Nominee Director is hired to act according to your instruction as long as it is within the normal legal business scope. He/she will assist you to execute certain documents while you are not in Indonesia as well as to represent your company when required.
Setting up a company in Indonesia
Step 1
vOffice Company Registration team will perform a Company Name Search for you at Indonesia's Ministry of Commerce database and if it is approve, we will reserve your Company Name for you.
Step 2
vOffice Company Registration team will prepare a draft MOA based on the best practice and run them by you. At this time, you can request for amendments if any. This document is a legal document that will be submitted to the Ministry of Commerce and should clearly state the names and personal information of all company's shareholders, company business address (PO Box and Residential Address is not permitted here), registered and paid up capital and the primary business activity.
Upon approval of the Indonesia Ministry of Commerce, your business is now legitimately register in Indonesia and you will be issue with your Company Affidavit, Certificate, List of shareholders and Company Articles of Association.
Step 3
If your company expected revenue for 1 year is below 1,800,000 Baht there is no need to register for VAT however you still need to submit a copy of all your company registration documents to the Central Filling Office of the Revenue Department for the issuance of your Company Tax ID Card.
If you need to register for VAT / obtain a VAT Certificate, you must obtain permission from the landowner where your business is registered in if your company does not own the land outright. Alternatively, you can also use vOffice address for this for a small fee.
Step 4
As part of our Company Incorporation package, we will prepare the necessary documents for you and provide you with a letter of recommendation with our partner bank. All company directors and signatories must be present in front of the bank manager before your bank account can be approve and open. Should one of the signatories for the bank account is a foreigner, some banks may require the signatories to have a valid work permit before approving the bank account.
In short, with vOffice Company Incorporation service, we can help you incorporate your business in Indonesia even with you stepping foot in Indonesia or our office. The usual turn around for company incorporation in Indonesia is 2 weeks.
Ready to get started?
Isi formulir di bawah ini untuk mendapatkan proposal penawaran dan tim kami akan segera menghubungi Anda. Terima kasih
Virtual Office gladly accepts:
Sejak 2003, Virtual Office vOffice telah melayani lebih dari 50.000 bisnis dan tersedia di lebih dari 28 lokasi di Indonesia. Virtual Office vOffice memudahkan bisnis untuk berkembang pesat dan beroperasi dengan mudah. Untuk informasi lebih lanjut mengenai Virtual Office Indonesia, silakan hubungi kami di +62 812 8005 5105 or email us at cs@voffice.co.id
