PT PMA

The company is considered foreign and belongs to PT PMA if any share of ownership is owned by a foreign citizen or foreign company. At the same time the percentage of ownership does not matter, it can be 100%, 51% or even 1% - if there are foreign shareholders, you are a foreign company. In fact, all foreign companies in Indonesia are PT PMA, which means a limited liability company with foreign direct investment. If you want to represent a foreign company in Indonesia, but do not receive income from activities, you can open a Representative Office (Representative office).

In order to attract more foreign investors and investments that have a positive impact on Indonesia’s economy, the Indonesian Government has significantly simplified regulations and reduced restrictions on foreign ownership. Today you can start an international company without any partnership with local or local shares. Welcome bonus - when you open PT PMA, you can get an investor KITAS for 2 years to the position of CEO.

The maximum allowable ownership of a company depends on your business classification. The share may range from 100% open to completely closed to foreign investment. The restricted industry regulatory document is the Negative Investment List (DNI) and is usually revised every 3 years.

1. Paid-in capital. The minimum paid-up capital for a foreign company in Indonesia is 2.5 billion rupees (~175,000 USD). 2. Structure of PT PMA and shareholders. Each PT PMA company in Indonesia must have at least two shareholders. It can be individuals, corporate shareholders or both. 3. Authorized representatives (commissioners) and directors. You must appoint at least one representative (commissioner) and one director. The representative is the head of the director(s) and may be a non-resident. At least one director must be a resident of Indonesia, have a tax card (NPWP). The Resident Director may be an Indonesian or a foreigner. 4. Business Location Indonesia is a decentralized country. Most of the government’s work takes place at the district level. Since the local district is responsible for issuing permits, it is important to select a place of business before starting the registration process and check all information about the zoning of the land/building. If you are online or do not need a real office, we can help you with registration of virtual office.

At the moment, the registration process for most of the business lines is through the centralized One Single Submission system, which greatly simplified and expedited the process. Previously, the procedure lasted about 10 weeks and longer. Now registration can be completed in 1-2 weeks if your business does not need additional licenses.