PT PMA
Are you foreigners living in Indonesia? That wish to build your own company in Indonesia?
For foreigners that wish to establish their company in Indonesia’s territory is call establishing PT PMA (Perseroan Terbatas Penanaman Modal Asing).
So, what exactly is PT PMA?
PT PMA is a business that is run or invested by foreign investors in Indonesian territories (According to the Indonesian Law No.25 of 2007). Which allows foreigners to conduct commercial activities in Indonesia under the Indonesian Law. To determine the category of business fields to be developed in Indonesia, the Central Statistics Agency (BPS) compiled a list as a guide.
This list is called Indonesian Standard Classification of Business Field (KBLI). This KBLI is a list that classified Indonesian economic activities or activities that produce products and or outputs. So that investors know which sector is okay to invest, as well as to protect the Indonesian economy.
In reference to the Indonesian Company Law, when establishing PT PMA must at least consist of:
- 1 Director
- 1 Commissioner
- 2 Shareholders
Director
Director(s) are elected by the shareholders. They are in charge of the company management and authorized to sign contracts with other third parties like vendors.
Directors can be foreigners as long as they have residence permits (KITAS) along with work permits.
This position can be held by a local citizen or a foreigner. Their job is to supervise and monitor the work of directors to make sure every activity follows the objective of the company.
PT PMA should at least have 2 shareholders, either individual or legal entity. At least one of the shareholders must be a foreign individual.
The minimum investment to start a PMA in Indonesia is IDR 10 billion. This does not include the value of land and building that is owned by the company. And the minimum capital requirement is 25% of IDR 10 billion.
Steps on establishing PT PMA
- Request and wait for an approval of a company name to the Ministry of Law and Human Right. Company name must consist of 3 words and only a notary could request it.
- Put in investment registration from The Indonesia Investment Coordinating Board (BKPM).
- Don’t forget to prepare Articles of Association (Akta Perusahaan) through a notary and wait for the Ministry of Law and Human Rights will give you the approval. This process is called the Approval of Legal Entity.
- This new company will be needing the Registration of Tax ID (NPWP) for bank activated and other tax obligations.
- You will need a Domicile Letter to show the location of the office building from the sub district (Kelurahan).
- Next you will need to gain NIB (Nomor Induk Berusaha), Business License(s) and location permit by registration in OSS (Online Single Submission).
If you are looking for an assistance to accompany and service you through the Foreign Company establishment process, BCENTRUM is your best choice. You can contact us down below!