Foreigners who plan to start a company in Indonesia may choose to set up a Perseroan Terbatas Penanaman Modal Asing (PT PMA). A PT PMA is a limited liability which is completely foreign-owned; its shares may be owned by foreign individuals, foreign legal entities, or a combination thereof.

PT PMA Information

Definition of a PT PMA

A Perseroan Terbatas Penanaman Modal Asing (PT PMA) is a limited liability company established according to the laws of Indonesia. The shares of a PT PMA may be held by any foreign entity. These foreign entities include foreign individuals and foreign legal entities. However, before certain business activities may be conducted by a PT PMA, there is a requirement for Indonesian citizens or legal entities to hold some of the PT PMA’s shares alongside foreigners.

How a Foreigner Can Start a PT PMA in Indonesia

The first required step for every foreigner who plans to start a PT PMA is that of consulting the Indonesia Investment Coordinating Board (BKPM). The BKPM is the investment service agency of the Indonesian government. It manages all foreign investment in Indonesia. It is important that the services of the BKPM be used so that all permits and licenses may be arranged in the proper manner. However, foreigners who are new to Indonesia and do not speak Indonesian may sometimes find it difficult to handle everything which the BKPM requires. For this reason, foreigners who are interested in starting a PT PMA may opt to use the services of a local company which will assist in the setup of the PT PMA. This local company will deal with all procedures at the BKPM and other institutions. The foreign owner of the PT PMA is only required to send all necessary documents to the local company providing the services.

It is also possible to own a PT PMA without establishing one from its very beginning. This is because there is also an option to acquire an existing PT PMA or Perseroan Terbatas (PT). However, due to the fact that a PT is a local limited liability company which is not to be owned by foreigners, it needs to be converted into a PT PMA once it has been acquired.

Should you be interested in starting a PT PMA or any other company in Indonesia, contact us at Paul Hype Page & Co. We are able to cater to all of your incorporation-related needs. We will enable you to begin running your own Indonesia-based business with as few problems and issues as possible.

Licenses and Documents Required for PT PMA Establishment in Indonesia

There are certain licenses and documents are required before a PT PMA can be established in Indonesia. These include a Deed of Establishment, a document confirming legalization of the PT PMA’s legal entity status, a Tax Identification Number (NPWP), a Company Registration Certificate (TDP), a Principle License, a Manpower Report, a Business License, a Company Welfare Report, a Domicile Letter, and a taxable entrepreneur confirmation (PKP). It will usually take around 45 working days for all these licenses and documents to be obtained and processed by relevant authorities.

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