COMPANY SET-UP (FOREIGN & LOCAL)
To establish a company in Indonesia, the investors will need to identify the types of Limited Liability Company that are recognized based on the regulations and law. A foreign-owned company (PT. PMA) is for investors originating from overseas companies or foreign individuals. Local company or commonly known as PT. PMDN is for those investing domestically and of national citizens and legal entities.
Requirements
FOREIGN-OWNED COMPANY PT. PMA
- PT. PMA can only contribute to large-scale business in Indonesia
- PT. PMA is required to have minimum capital of IDR 10 billion
- The Company consists of minimum 2 Shareholders
- The Company will be required to have at least 1 Director and 1 Commissioner
- Business activities must be classified under the Business Classification Code based on Indonesian Regulations
- Certain business activities will be required to have joint venture form with local investors
Requirements
LOCAL-OWNED COMPANY PT. PMDN
- PT. PMDN can contribute to several sizes of business model: small, medium and large
- PT. PMDN of small size business is required to have minimum more than IDR 50 million
- The Company consists of minimum 2 Shareholders
- The Company will be required to have at least 1 Director and 1 Commissioner
- Business activities must be classified under the Business Classification Code based on Indonesian Regulations
PROCEDURES TO ESTABLISH A COMPANY IN INDONESIA
Acknowledged as Legal Entity – Indonesia Company Law No. 40 of 2007 and Omnibus Law No. 11 of 2020
1. Initial Consultation : to determine the proper activity
2. Preparation of Legal Documents in Notary
3. Registration with the Ministry of Law and Human Rights
4. Registration of Tax ID Number (NPWP)
5. Finalization and Acquiring Business Permit
BUSINESS PERMIT FOR COMPANIES IN INDONESIA
| 1. | Approval from Ministry of Law and Human Rights on the Establishment Documents submitted by the Notary |
| 2. | Tax Identification Number (TIN/NPWP) from the Local Tax Office where the Company is registered |
| 3. | Business Registration Number / Nomor Induk Berusaha – NIB submitted through the Online Single Submission System (OSS) Indonesia |
| 4. | Environmental License (if applicable) submitted through the OSS Indonesia and other related institutions |
| 5. | Standard Certification or Specific Business License for certain business activities, these are needed due to the different qualifications on business activities and requirements |
PT PMA is a limited liability company established under Indonesian law, which is established under full foreign capital or in a joint venture with domestic investors (Law No. 25/2007). As this type is recognized as Limited Liability Company, Shareholders are only financially responsible to the company as much as the owned shares/capital within the company (and this separates the private and personal assets owned by the shareholders (hence, the limited liability type).
- Establishment is allowed all around Indonesia
- Less restrictions in regards of the business activities i.e. export-import
- No expiration date once established as Company
Foreign Director in a PT. PMA (Foreign Limited Liability Company) is required to apply for Limited-Stay Permit for Work/Work Visa - commonly known as KITAS in Indonesia
Why Choose Us?
Expert Guidance and Compliance
Our legal services ensure expert guidance and compliance with both local and international regulations, facilitating a smooth and lawful establishment of PT PMA and PT PMDN.
Strategic Legal Counsel
Our legal expertise spans diverse areas, offering strategic counsel in taxation, collaboration with local partners, and comprehensive legal protection, enhancing the overall success and sustainability of your business ventures.
Efficient Ownership Structuring
We streamline the ownership structuring process, providing efficient solutions for both foreign investors (PT PMA) and Indonesian citizens (PT PMDN), fostering ease of management.
Get Started!
Our dedicated team is ready to assist you and providing the necessary legal support to address your concerns in accordance with Indonesian law.
