Over the past decade, Indonesia has become one of the most investment-attractive places in the world. Foreign investors come to Bali and willingly open businesses here.
PT PMA is the most popular and secure type of business license for foreign investors in Indonesia. It is suitable for projects of any size, and investors do not face any restrictions in their ventures.
What Is Considered a Foreign Company?
Any organization that is invested by foreign investors (even with 1% of shares owned by foreigners) is considered foreign. Indonesian regulations allow foreign direct investment under the PT PMA license.
However, if you only want to represent a foreign company in Indonesia and will not receive any income from local activities, you can create a representative office instead.
Restrictions For a Foreign Company
Indonesian law regulates the maximum allowable share of foreign capital owned by a company, depending on the activity of the company. In some enterprises, 100% participation of foreign capital is allowed, in some not over 10%. The list of restrictions is contained in the document DNI (Negative Investment List).
WHAT ARE THE BENEFITS OF OPENING A COMPANY
- It is possible to legally make a business in Bali;
- Opening a bank account;
- Possibility to obtain an investor visa (KITAS);
- It is possible to obtain local medical insurance.
How Do I Register a PT PMA In Indonesia?
- The authorized capital of 10 billion Indonesian rupiah or more is required.
- At least 2 shareholders are required.
- At least one resident of Indonesia must be listed in the company’s directory.
- The registered address of the company.
Steps In The PT PMA Registration Process
- Choosing the right business classification to get the maximum allowed percentage of ownership;
- Selecting an office, getting the company’s address (Domicile Letter);
- Getting the NPWP tax number from the Tax Office;
- Getting the NIB business registration number (Nomor Induk Berusaha);
- Obtaining commercial licenses.
Some projects require additional documentation and permits, which affects the cost.
The cost of registering a PT PMA company starts from 20 million IDR.