Company registration (PMA)
Company registration (PMA)
In the last decade, Indonesia has emerged as a global investment hub, attracting foreign investors eager to establish their businesses, particularly in picturesque locations like Bali. Among the various business licenses available, PT PMA stands out as the preferred choice for foreign entrepreneurs due to its popularity and secure nature.
What Constitutes a Foreign Company?
Any organization with foreign investment, even as little as 1% of total shares owned by foreigners, is categorized as a foreign company. Indonesian regulations permit foreign direct investment under the PT PMA license. However, if your intention is solely to represent a foreign entity in Indonesia without generating local income, you can opt for establishing a representative office instead.
Foreign Company Restrictions
Indonesian law stipulates the maximum allowable foreign capital ownership in a company, contingent upon its business activities. While some industries permit 100% foreign ownership, others have a cap of 10%. A comprehensive list of these restrictions is available in the DNI (Negative Investment List) document.
Benefits of Company Registration
The advantages of registering a PT PMA company in Indonesia are numerous:
- Legal Business Operation in Bali: Establishing a legitimate business presence in Bali, a coveted destination for entrepreneurs.
- Opening a Bank Account: Accessing the Indonesian financial system for seamless transactions.
- Investor Visa (KITAS): The possibility of obtaining an investor visa for the company’s stakeholders.
- Local Medical Insurance: Ensuring comprehensive healthcare coverage for employees and associates.
Requirements For PT PMA Registration in Indonesia
To embark on the PT PMA registration process, you must meet specific prerequisites:
- Authorized Capital: A minimum capital of 2.5 billion Indonesian rupiah or more is mandated.
- Shareholders: A minimum of two shareholders is required.
- Resident Director: The company must list at least one resident of Indonesia in its directory.
- Registered Address: A designated company address is essential for the registration process.
PT PMA Registration Process
The registration process involves several crucial steps:
- Business Classification: Carefully select the appropriate business classification to maximize your allowed ownership percentage.
- Office Selection: Choose an office location and obtain the necessary Domicile Letter for the company’s address.
- Tax Number (NPWP): Secure the NPWP tax number from the Tax Office.
- Business Registration Number (NIB): Obtain the NIB business registration number (Nomor Induk Berusaha).
- Commercial Licenses: Complete the process by obtaining the requisite commercial licenses.
It’s important to note that some projects may necessitate additional documentation and permits, which can affect the overall cost.
Cost of company registration service
The cost of registering a PT PMA company in Indonesia typically starts at 17 million IDR. However, this cost can vary based on the specific requirements of your business venture.
If you want to clarify the details and find out the final cost of the service in accordance with your requirements, please contact us.
Frequently Asked Questions (FAQs)
-
What is a PT PMA?
A PT PMA (Penanaman Modal Asing) is a foreign-owned company in Indonesia, characterized by having foreign investment, even as little as 1% of the total shares.
-
Who Can Establish a PT PMA?
Any foreign investor looking to establish a business in Indonesia, especially in areas like Bali, can opt for a PT PMA registration.
-
What Are the Restrictions for Foreign Companies in Indonesia?
Foreign capital ownership in Indonesian companies is regulated, with maximum limits depending on the industry. These restrictions are detailed in the DNI (Negative Investment List).
-
What Are the Benefits of Registering a PT PMA?
Registering a PT PMA offers several advantages, including legal business operation in Bali, ability to open a bank account in Indonesia, eligibility for investor visas (KITAS), and access to local medical insurance for employees.
-
What are the Requirements for Registering a PT PMA?
Key requirements include a minimum authorized capital of 2.5 billion IDR, at least two shareholders, a resident director from Indonesia, and a registered company address.
-
What is the Process of PT PMA Registration?
The registration involves selecting a business classification, securing an office location, obtaining a Tax Number (NPWP), a Business Registration Number (NIB), and the necessary commercial licenses.
-
Are There Additional Requirements for Certain Projects?
Some business ventures may require extra documentation and permits, affecting the overall cost and registration process.
-
How Much Does It Cost to Register a PT PMA?
The starting cost for PT PMA registration is typically around 17 million IDR, but this can vary based on specific business needs.
-
How Can I Find Out the Final Cost and Details for My Specific Business?
For a detailed and tailored cost estimation and process guidance, it’s recommended to contact the registration service directly.