PT PMA
(FOREIGN INVESTMENT)
Company

What is PT PMA?

Indonesia has become one of the most popular investment destinations. In terms of foreign-owned businesses, Bali has become an investment island of choice!

A foreign-owned company in Indonesia is commonly referred to as a PT PMA – a Limited Liability company with foreign capital. It is a common and preferred company type or structure chosen by foreign businesses and investors, as it’s designed to meet the legal requirements stipulated by the government.

PT PMA is the main license regulating foreign investors’ activities. It is suitable for projects of any size and investors do not face any limits in their inceptions. Setting up a PT PMA requires a lot of legal paperwork.

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Benefits of a PT PMA
(Foreign-Owned Company)

You can employ foreigners
A foreign-owned company can sponsor and issue work KITAS for its international employees. It can also sponsor business visas for business partners and clients arriving in Indonesia for a short stay.
You can own the rights to register products
Register your products under your PT PMA to ease business operations in Indonesia, instead of relying on an Importer of Records
You can own the rights to obtain business licenses With a PT PMA, your company will be able to apply for various business licenses to further diversify your business portfolio or investments.

Other requirements to start a PT PMA for 100% ownership in Bali

Paid-Up Capital Amount
All PT PMA(s) are required to fulfill the minimum paid-up capital of IDR 10 billion. Shareholders of the company are required to sign off a Capital Statement Letter stating that the shareholders have sufficient funds to meet the required capital.

The Structure Of A PT PMA
As outlined in Indonesia’s Company Law, a corporate structure of a PT PMA consists of Shareholders, Board of Commission- ers, and Board of Directors.

A Shareholder as the namesake states owns the company – they could be individual or corporate shareholders. They have the highest authority when it comes to decision-making. They could be an individual, company, or foundation. The PT PMA will also require a minimum of 1 Commissioner and 1 Director.

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Frequently asked questions

Why do I need to set up a PMA?

A PMA is the only way to legally open a business for foreigners.
This will allow you to pay taxes and earn incomes from Indonesia.
This will also secure all your investment.
As soon as your PMA is open, you can apply for Investor Kitas as a shareholder of your company.

Do I need an Indonesian Citizen to open a company?

No. The PMA allows you to open a company with 100% foreign shareholders (minimum 2 persons).

How long does it take to open a PMA?

The process to have a PMA ready to run takes 1 month. You can then legally start your business.

What do I need to do when my PMA is open?

As soon as your PMA is ready to run, you will need to start your accounting and tax report. You can seek help with professional accounting and tax expert here

Do I need a physical address to open a PMA?

Yes, your company must have an address in Indonesia. Moreover, the address needs to be authorized as a business address. Legal Legends Indonesia will check for you your address, if you don’t have one or if your address cannot accept a business, we can offer a Virtual Office address.