Benefits of Local PT Company in Indonesia
Local PT companies are one of the most common and well-known company types in Indonesia because of the benefits tied to them. Some of these advantages include:
1. Lower paid-up capital requirement
Compared to a PT PMA company, a PT company requires a much lower paid-up capital. Depending on the scale of your business, the minimum investment value ranges from IDR 50 million to IDR 10 billion. For PT PMA companies, it stands at IDR 10 billion.
|Size of Business Entity
||Minimum Investment Value
||IDR 50 million
||IDR 500 million
||IDR 10 billion
In contrast, PT PMA companies (foreign-owned companies) would need an investment value of a minimum IDR 10 billion.
2. Holding multiple business licenses without needing to commit additional paid-up capital
As a local nominee structure, the company can have three main business activities without forking out additional paid-up capital for the other businesses. The only cost incurred for the maintenance of the local PT company, such as recuring annual fees.
3. Ability for funding
With a local PT company in Indonesia, you can easily secure additional fundings and capital through various means such as by issuing new shares.
4. Wider range of business opportunities
In Indonesia, there are certain business activities that are restricted under the new positive investment list, which replaces the negative investment list. Local PT companies do not have such restrictions and have a wider range of business activities to choose from, as compared to a PT PMA company.