Foreign-Owned Company (PT PMA)
In Indonesia, a foreign-owned company is known as a Perseroan Terbatas Penanaman Modal Asing (PT PMA). A PT PMA is a legal entity which can be used by foreigners to conduct commercial activities in Indonesia as long as the PT PMA has been established under the laws of Indonesia.
In a PMA, foreigners can be registered as shareholders, whether they be individuals or legal entities. Shares of a PT PMA can be completely owned by foreign investors who have complied with the Negative Investment List. This list contains information about which sectors are open to foreign investment. The Indonesia Investment Coordinating Board (BKPM) compiles and updates the Negative Investment List.
The proportion of foreign ownership of PMA will vary from company to company. This is because certain business activities require Indonesian citizens or local legal entities to hold shares alongside the foreign investors. According to the Negative Investment List, certain sectors only permit partial foreign ownership. The list also states the allowed portion of foreign ownership in each sector to which this fact applies.
Facts About PT PMAs
Directors, Commissioners, and Shareholders
According to Indonesia’s company laws, every PT PMA ought to have at least one director, one commissioner, and two shareholders. The shareholders may either be individuals or legal entities; they may also be either local or foreign. At least one of the shareholders must be a foreign individual or foreign legal entity.
The director and the commissioner are both allowed to be shareholders of the PMA. Commissioners, however, are not part of the daily company management. PMAs which have more than one commissioner must select one of them to serve as the president commissioner. The president commissioner has the responsibility of being in charge of the board of commissioners. The primary task of the board of commissioners is the supervision of the board of directors, who form the company’s executive management.
The director of a PMA is in charge of company management in accordance with any policy which may have been specified by Indonesian company laws or the company’s Articles of Association (AoA). Directors of a PMA have the right to legally represent the company. Directors are also authorized to sign any contracts between the company and third parties such as vendors, suppliers, and clients. Directors are also to manage all of the company’s taxation documents. However, a non-resident director cannot sign documents on behalf of the company. Therefore, the director has to first process the work and stay permit immediately after appointment to the position.
Shares of a PMA can be fully owned by foreign investors. The Negative Investment List provides further information on this matter by determining how much foreign ownership of the PMA’s shares is permitted. The proportion of shares of a PMA which may be held by a foreigner depends on the business field of which the PMA is a part.
Minimum Investment and Paid-up Capital Value
In Indonesia, the minimum investment value to start a PMA is 10 billion rupiah or its equivalent in any foreign currency, while the minimum amount of paid-up capital is 25% of this amount. This applies to all business sectors. The value of the minimum investment and paid-up capital do not include the value of the land and buildings owned by the company.
Paul Hype Page & Co – OSS service provider and Asean Chartered Accountant.
Paul Hype Page & Co. have 3 physical offices in Singapore, Malaysia and Indonesia
Our Firm Goal is to assist Foreigner and Foreign Companies to set up business in Asean.
How we can help you:
We will call you back, please click below link and make appointment with our Sales consultant:
Step 1- Listen to your Business plan and Relocation needs.
Step 2- Analysis your Tax Planning
Step 3- Recommend the most suited type of Company Incorporation, Open Bank account and Work Visa
Step 4- Arrange for your Spouse and Children Visa
Step 5- Assist as your company to hire staffs and handle all HR matters
Step 6- Every financial year end, we assist you with your yearly OSS Finanical and Tax Complianc
Step 7- Assist you to expand business to Malaysia, Indonesia, Vietnam and Thailand.
Get in Touch with Us Today.
Paul Hype Page