5 mins |
October 29th, 2021
|
When you decide on setting up a business in Indonesia, the first step is to understand the types of business entities available to choose from. PT PMA Companies in Indonesia are one of the most popular choices for businesses who wish to incorporate there.
PT stands for Perserona Terbatas (PT) which is a type of business entity that refers to any private company in Indonesia that could either be a local or foreign limited liability company (LLC)
PMA stands for Penanaman Modal Asing (PMA) which is a popular option for any foreign companies that wish to venture into Indonesia’s investment opportunities.
Why is PT PMA Company a Popular Choice?
The key benefit of starting a PT PMA company is that it is the ideal legal method for foreign owned businesses to operate and generate revenue in Indonesia.
While the cons of starting a PT PMA company is that, due to its international position in the market, the start-up capital value will be high, and it is not available for all business fields. A total start-up capital of 700,000 USD is required with a total estimated waiting time of 10 weeks for incorporation, although this incorporation period differs on a case-by-case basis.
What is Needed Upon Establishment of PT PMA Company?
Generally, these are the few documents that are required for the establishment of a PT PMA company in Indonesia:
Company Documents
- Power of Attorney for submission document signed by each shareholder
- Shareholder documents
- Rental agreement between the company & building management
- Original building domicile/statement from the building management
- Building & land tax receipt (PBB) including the payment approval of current year
- IMB or certificate of ownership if the building is owned
- Statement for lease (if any)
- Min. 3 office photos – reception, signage of company & office room with business activity
- Statement of domicile issued by the company & acknowledged by the building management
- Company letterhead & copy or sample design of the company stamp
Shareholder Documents
- Copy of Article of Association and its amendment – in English r Bahasa Indonesia
- Business registration certificate
- Board of Directors structure
Personal Documents – Directors & Commissioners
- Foreigner: Copy of coloured passport with a min. 18 months validity and 4 blank pages
- Local: ID card (KTP & Taxpayer Identity Number)
- Family card (KK)
- Indonesia visa stamp
- Residence of hotel or apartment domicile letter for the director
- Recent passport-sized photo with red background for each Board of Director
For shareholder documents, depending on whether it is a foreign, local or a personal foreigner, the requirements differ.
| Business Entities | Shareholder Documents |
|---|---|
| Foreign Legal Body |
|
| Local Legal Body |
|
| Personal Foreigner |
|
Steps for Establishment of PT PMA
The procedure for incorporating a PT PMA Company in Indonesia is fairly straightforward, although there are many of institutions that you will need to get documents from.
Here is a summarised version of the procedure:
| Procudure | Institution |
|---|---|
| Approval of company name (should consist of 3 words) |
|
| Review, Revision, and Approval of Principle License as their temporary license |
|
| Article of Association (AKTA) |
|
| Legalized of Legal Entity (Deed of Establishment/ SK Kehakiman) |
|
| Certificate of Domicile |
|
| Taxpayer Registration Number (NPWP) and letter of registered tax (SKT) |
|
| Company Registration Certificate (TDP) |
Setting up an Indonesia company can be difficult. Reach out to us for a free consultation for your incorporation and other corporate needs from taxation to visa application!
FAQs
This section discusses the incorporation of a foreign investment limited liability company in Indonesia, known as Perseroan Terbatas Penanaman Modal Asing (abbreviated PT PMA). It is the legal entity through which a foreign investor can conduct commercial activities in Indonesia.
The registration is done via the Online Single Submission (OSS) system.
PMA Indonesia (Penanaman Modal Asing) or PT PMA (Perseroan Terbatas Penanaman Modal Asing) is also known as a Foreign Owned Company. This is a form of legal entity created under the Indonesian Law in which foreign investors can choose to conduct business in Indonesia to generate revenues or profit.19 Mar 2021
Perseroan Terbatas, PT is the abbreviation of Perseroan Terbatas, a limited liability company whose capital is divided into shares and the responsibility of shareholders based on the number of shares that he or she has. Fortunately, since the beginning of 2016, the procedure of establishing a PT company has been continuously simplified.
Join the discussions