If you are a foreign company or individual looking to start a business in Indonesia, a PMA (Penanaman Model Asing) is the safest way to start a business in Indonesia. It will ensure the investor has full control over the direction of the company. There are no restrictions where the company can operate and it reduces the risk in finding a suitable local partner.
Being a foreign owned company the investment value is significantly higher than that of a PT. The investor should invest above USD 1 million / 10 Billion IDR as their investment plan, with a paid-up capital above USD 250.000.000 / 2.5 Billion IDR. The Investment plan can either be cash or fixed assets, such as machinery. The paid-up capital does not need to be paid until after the company is established.
Please note that these numbers may seem daunting for startup businesses; however, for more clarification, please feel free to ask the LetsMoveIndonesia team.
The steps involved creating a PMA are:
1. Approval of company name
2. Article of association (Akta Perusahaan) – Foreign Owned Company Establishment
3. Legalisation of Legal Entity (SK Kehakiman) – The Article of Association being legalised
4. Domicile Letter – only for outside Jakarta
5. Tax Registration Number (NPWP)
6. Registration Number (NIB) – under Online Single Submission(OSS) system
7. Business License – under Online Single Submission (OSS) system
8. Commercial License (if any) – under Online Single Submission (OSS) system
List of Required Documents
1. Minimum 2 shareholders
2. Identity and contact details of Company Shareholders:
-For Indonesian Individuals, KTP and NPWP
-For Foreign Individuals, valid passport
-For Indonesian Companies, copy of Article of Establishment and the amendments and the Approval from the Ministry of Law and Human Right, Domicile Letter, Tax Id, Business License, Company Registration Certificate (TDP/NIB)
-For Foreign Companies/entities, copy of Article of Association in English or its translation in Bahasa Indonesia from a sworn translator
3. Identity and contact details of Company Directors and Commissioner:
-For Indonesian individuals, KTP, NPWP, email and phone number.
-For Foreign Individuals, valid passport, email and phone number.
4. Copy of Lease Agreement between company and building management
Company Establishment Packages
To make your life simpler, LetsMoveIndonesia offers fully serviced packages to get your business off the ground. The Magnate Package includes PMA Establishment, a virtual office and an Investor KITAS! To find out more details about the The Magnate Package, click here!