Quick Overview
For foreign investors looking to start a business in Indonesia, establishing a Foreign Investment Limited Liability Company (PT PMA) is a mandatory step. A PT PMA allows foreign companies to operate legally in Indonesia under the applicable regulations. However, the process can be quite complex and requires a solid understanding of licensing rules. This article will walk you through how to establish a PT PMA, from legal foundations to registration procedures.
What is a PT PMA?
A PT PMA (Foreign Investment Company) is a legal business entity established with foreign capital—either fully foreign-owned or in partnership with Indonesian investors. It enables foreign shareholders to own and operate a business in Indonesia in permitted sectors.
Legal Basis for PT PMA
The establishment of a PT PMA must follow Indonesian regulations. Key legal frameworks include:
1. Law No. 25 of 2007 on Investment
2. Presidential Regulation No. 10 of 2021 on Business Sectors Closed and Open to Investment
3. Government Regulation No. 5 of 2021 on Risk-Based Licensing (OSS System)
What Business Sectors Are Open for PT PMA?
PT PMA can be established in sectors permitted for foreign investment, as outlined in the Indonesian Standard Business Classification (KBLI) and the Positive Investment List. It is essential to check if your intended business activity is open to foreign ownership.
Requirements for Establishing a PT PMA
1. Minimum Authorized Capital: IDR 10 billion (as per BKPM guidelines), with at least 25% paid-up capital.
2. Minimum Shareholders: At least two shareholders (individuals or legal entities, foreign or domestic).
3. Organizational Structure: Must have directors, commissioners, and shareholders.
4. Business Activity: Must align with KBLI codes and regulations governing foreign investments.
5. Company Address: Must have a physical office address in a zone designated for business use.
6. Business Licenses: Must obtain a Business Identification Number (NIB) and operational licenses relevant to the business activity.
Steps to Establish a PT PMA
1. Company name reservation and verification
2. Drafting the Deed of Establishment by a notary
3. Legal entity approval by the Ministry of Law and Human Rights
4. Company Tax ID (NPWP) registration
5. Obtaining a Domicile Certificate
6. Issuance of Business Identification Number (NIB)
7. Applying for additional licenses (if required by the business sector)
Need Help Setting Up a PT PMA in Indonesia?
Are you a foreign national looking to start a business or stay longer in Indonesia? We can assist you with the entire PT PMA registration process as well as with other services such as New KITAS, Investor KITAS, Family KITAS, and more—hassle-free, secure, and efficient. Visit our office at: Ruko Magnetica Square, Jl. Majapahit No. 26 Blok A, Kel Cibatu, Kec Cikarang Selatan, Kab Bekasi, Jawa Barat (Google Maps: https://g.co/kgs/uXn2GLh).
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Let’s make your business journey in Indonesia smooth, legal, and successful.
