PT PMA Setup
Setting Up A PT PMA Company with Kamala Visa Bali.
Those of you who are interested in starting a business in Indonesia likely want to know about the PT PMA setup process. To make it easier to understand, let’s break it down to PT and PMA first.
PT stands for Perseroan Terbatas (Limited Liability Company), a type of business whose capital is divided into shares, and the responsibility of shareholders is based on the number of shares he/she has. Now, if the PT has foreign investment, then it’s called PT PMA (Penanaman Modal Asing), which translates to LLC with Foreign Investment.
PT PMA is a legal entity designed for foreign nationals who intend to establish a company or expand their business operations in Indonesia.
The key difference between PT and PMA is where the share belongs. PT consists of 100% local shares and has no shareholder requirements, whereas PMA has its shareholders determined based on the Negative Investment List.
PT PMA has the same rights and duties as any other Indonesian company, and PT PMA setup involves various laborious steps. To help you build your business, we have experts who can navigate you through the registration process easily, contact us to make it happen!
Sectors and Ownership.
Before establishing your business in Indonesia, you need to understand that not all sectors are open to foreigners. Some are closed, or partially closed to foreign investment. If your business sector is partially closed, it means that you’re going to need an Indonesian as a local partner to engage in that business sector.
You can navigate through this list (search: Perpres Nomor 49 Tahun 2021) to find out which sectors are open for foreign investment or you can search “Indonesia Positive Investment List” on Google.
Shareholders.
You need at least two shareholders to complete a PT PMA setup. At least one Director needs to be local and reside in Indonesia to take care of all daily operations, while the foreign investor or foreign legal entity can take the role of Commissioner or Director, depending on how much he/she wants to actively participate in daily operations.
The benefits of PT PMA Setup.
Registering your company as a PT PMA over a local PT offers several benefits. Some of the key benefits include:
Ownership and Control
Depending on the sector of your business, PT PMA allows you to have (up to) 100% of company ownership. This large portion of ownership gives you a lot of flexibility and control in running your business. It’s in contrast with what PT offers, which consists of 100% local ownership.
Greater Business Opportunities
As one of the strongest economies in Southeast Asia, Indonesia has tremendous business opportunities for foreigners. By registering your business as PT PMA, you gain access to a wide range of business opportunities, such as telecommunications (ISP), ports, maritime cargo handling, airport supporting services, and many more, unlike PTs, which are restricted to certain sectors.
Legal Certainty and Protection
When you register your business as a PT PMA, you get legal protection under Indonesian law. It includes many things such as property ownership, intellectual property rights, agreements between you and your clients, as well as access to many assets the company owns. You can also buy any property anywhere in Indonesia on behalf of your company.
PT PMA Requirements.
A business needs to have a minimum of two shareholders. Each party have to fulfil these requirements to register a PT PMA:
Business Entities | Documents (Copy of …) |
Local Legal Entity |
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Foreign Legal Entity |
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Foreign Individuals |
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What is the process for PT PMA Setup?
This is the step-by-step process to register a PT PMA in Indonesia:
Step 1 | — | First, register your company name to a notary. The name must contain 3 words that are not vulgar nor obscene. |
Step 2 | — | The notary will then make a draft of the Article of Establishment. |
Step 3 | — | Submit your Deed of Establishment to the Ministry of Law and Human, and wait until they give you their approval. |
Step 4 | — | Next, you need to visit your tax office and get an NPWP (Registration of Tax Identification). |
Step 5 | — | SKTU (Domicile Letter) is required to show the location of your business. |
Step 6 | — | You then apply for an NIB (Nomor Induk Berusaha). Alongside NIB, you will also be granted with Business License and Location Permit, one day following the registration of NIB via OSS (Online Single Submission). |
Step 7 | — | Depending on your business sector, you may need to apply for additional licenses such as commercial license and tourism license. |
Temporary Stay Permit for Investors or Workers Overseas
After registering your company to the authorities, you need to apply for a work visa. There are several options you can choose:
Working KITAS
As the name suggests, a Working KITAS is designed specifically for foreigners who work in Indonesia, whether you work for a Representative Office, an Indonesian Owned Company (PT), or a Foreign Owned Company (PMA).
With this visa, you can actively earn income, open bank accounts, pay taxes, etc. As a Director or Commissioner, you can obtain a 12 months Working KITAS, with an additional permit that can be extended for 12 months if you wish to stay a little bit longer in the country.
Investor KITAS
Investor KITA has become one of the most popular visas for foreign investors. It allows you to enter and leave Indonesia multiple times and manage your business in Indonesia with relative ease. You can get a one year Investor KITAS or two year Investor KITAS based on your passport validity.
After registering your company and applying for a visa, you are advised to open a corporate bank account to manage your finances in Indonesia.
Our Process Is Simple
Our visa application services aim to help visitors enjoy their stay in Bali without worrying about the legal stuff. Here’s how the process works:
Submission of other supporting documents required: passport, vaccine certificate etc
What other Bali visa services do we offer?
At Kamala Visa Bali, we’re proud to offer a wide range of fantastic services. We pride ourselves on being the most helpful and knowledgeable visa agent in Bali, and we are always here to answer any questions about:
- Investor KITAS
- Working KITAS
- Family KITAS
- B211b Business Visa
- B211a Tourist Visa
- PT PMA Setup
- Visa Extension.
Get in touch with Kamala Visa Bali today. Our friendly team is ready to help.
Frequently Asked Questions
PT (Perseroan Terbatas) is a firm or business organisation available only for Indonesian citizens, whereas PT PMA is a legal entity intended for foreign citizens who want to establish a business and make profits in Indonesia.
The key difference is the percentage of the ownership. PT is 100% owned by the locals, while PT PMA shares can be owned fully by foreign nationals or partially owned by both the locals and the foreign investors.
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