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Incorporating a PT PMA Company in Indonesia for Foreigners.

When starting a business in Indonesia, it's important to understand the different types of business entities. One popular option is the PT PMA company. PT refers to Perserona Terbatas, a private company in Indonesia that can be a local or foreign limited liability company. PMA stands for Penanaman Modal Asing, a choice for foreign companies wanting to do business in Indonesia.

Popularity of PT PMA Company as a Business Entity.

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.

What is Required for Setting Up a PT PMA Company in Indonesia ?

To establish a PT PMA company in Indonesia, typically the following documents are required :

01.

Documents Required for PT PMA Company Incorporation


These are the required documents for incorporating a PT PMA company in Indonesia :

  • Power of Attorney signed by each shareholder
  • Shareholder documents
  • Rental agreement between the company and the building management
  • Building confirmation from the building management agency
  • Building & land tax receipt (PBB) with current year payment approval
  • IMB or certificate of ownership if the building is owned
  • Lease statement (if any)
  • At least 3 office photos: reception, company signage, and office room with business activity
  • Company domicile statement acknowledged by the building management
  • Company letterhead and a copy or sample design of the company stamp.

02.

Documents Required from Shareholders


Documents are required :

  • Article of Association and amendments (in English or Bahasa Indonesia)
  • Business registration certificate
  • Board of Directors structure

03.

Director & Commissioner Personal Documents


Documents are required :

  • Foreigner: Colored Passport with 18+ months validity and 4 blank pages
  • Local: ID card (KTP & Tax ID)
  • Family card (KK)
  • Indonesian visa stamp
  • Director's Hotel or Apartment Residence Letter
  • Recent passport-sized photo with red background for each Director.

Requirements for shareholder documents vary depending on whether the shareholder is a foreign national, local resident, or personal foreigner.

Types of Business Entities
Overseas Legal Entity
Indonesian Legal Entity
Individual with Foreign Citizenship

Shareholder Papers

  • Copy of Article of Association and its amendment (English or Bahasa Indonesia)
  • Business registration certificate
  • Board of Directors structure

Shareholder Papers

  • Article of Association and its amendment
  • Business registration certificate
  • Board of Directors structure
  • Company taxpayer ID number (NPWP)
  • Domicile letter from sub-district (Dominisili Kelurahan)
  • Business license (SIUP/NIB)
  • Company registration certificate (TDP/NIB)
  • ID card (KTP) & NPWP for each Board of Director
  • Passport for foreign Board of Director

Shareholder Papers

  • Copy of passport with 18 months validity and 4 blank pages in color.

Stages for Setting Up a PT PMA Company

The steps to establish a PT PMA Company in Indonesia involve obtaining various documents from multiple institutions and can be summarized as follows Simplified procedure for setting up a PT PMA company in Indonesia :
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

What Happens After Incorporating a PT PMA Company in Indonesia ?

After incorporation, foreign investors must apply for work visas and any necessary business licenses.
It's recommended to open a corporate bank account for financial management.
2,000+ big and small companies in Indonesia trust vOffice.
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How much does it cost to register a company in Indonesia ?

  • The Fee
  • For Limited Liability Company
    (PMA)
  • USD 1,800
  • Average Turn around time : 18 days
  • free consultation
    • - What you’ll get -
    • Company Name Search and Company Name Reservation
    • Drafting of Deed of Establishment
    • Submission of Deed of Establishment to the BKPM or Indonesian
    • Investment Coordinating Board
    • Obtain Approval from Ministry of Labour and Human Resources (MOLHR)
    • Register your Company with the Directorate General of Taxes (DJP)
    • English Translation of your Company Incorporation Documents
    • Documents for Company Bank Account Opening (Minutes of Meeting, Verified Company Document Set)
    • Gov't Fees, Legal Fee, Professional Fee,Notarization Fee & other Out-of-pocket expenses.
  • The Fee
  • For Limited Liability Company
    (PMA) & Virtual Office
  • USD 2,500
  • Average Turnaround time : 18 Days
  • free consultation
    • - What you’ll get -
    • Company Name Search and Company Name Reservation
    • Drafting of Deed of Establishment
    • Submission of Deed of Establishment to the BKPM or Indonesian
    • Investment Coordinating Board
    • Obtain Approval from Ministry of Labour and Human Resources (MOLHR)
    • Register your Company with the Directorate General of Taxes (DJP)
    • English Translation of your Company Incorporation Documents
    • Documents for Company Bank Account Opening (Minutes of Meeting, Verified Company Document Set)
    • Gov't Fees, Legal Fee, Professional Fee,Notarization Fee & other Out-of-pocket expenses.
    • - You’ll also get -
    • Prestigious Business Address
    • Receive Mails & Parcels
    • SMS or Email Notification
    • Investment Coordinating Board
    • Reception Service
    • Free Building Domicile
    • Perjakbi (Shared Office Entrepreneur Association of Shared Office) Certificate
    • Dedicated Local Telephone Number
    • Professional Call Answering
    • Free Call Transfer Worldwide
    • 8 Hours Meeting Room / month
    • 8 Hours Workstation / month
    • 3 Hours Executive Office Suite / month
    • Access to meeting room usage at any of vOffice locations
    • Read more

Additional Services

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 fundamental of a
PMA company in Indonesia

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.

Setup Limited Company
with mostly owned by foreigners

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.

  • 1. Obtain a Foreign Business License
  • 2. Board of Investment (BOI) Promotion
  • 3. Registration through the Treaty of Amity. For US citizens only

Capital

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.


Director-as-a-Service

If you require a local Director to act on your behalf, please read below.

What is a Nominee Director?

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.

Why is it better to 'hire' a Nominee Director than using a friend, girlfriend or wife as your nominee?

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 by step guide on
Registering a Limited Company in Indonesia

  • Step 1

    Decide a name for your company and provide 2 other alternative

    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

    Drafting, Signing and Filing of Memorandum of Association (MOA)

    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

    Tax and VAT Registration for your Indonesia Limited Company

    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

    Opening your Company Bank Account with a reputable Indonesia Bank

    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.

Turn around time

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.

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