Company Registration: Setup A PT PMA in Indonesia
What is a PMA?
PMA, or Penanaman Modal Asing, refers to a foreign-owned company in Indonesia. It addresses the PT (Perseroan Terbatas or Limited Liability Company) owned by foreigners or established through foreign investment. This legal structure enables international investors to establish and conduct business operations in Indonesia following the country's registration procedures.
What is considered a Foreign Company?
A foreign company is any private entity where the majority of ownership or control belongs to foreign investors or shareholders. These businesses are established by foreign individuals or organizations seeking to conduct activities in Indonesia. Shareholders must provide paid-up capital and necessary resources while maintaining an active stake in company shares and decision-making processes.
Benefits of a PMA (Foreign-Owned) Company
Foreign-owned companies offer several advantages:
- Access to Indonesia's vibrant market and diverse investment opportunities
- Government incentives including tax breaks, import duty exemptions, and simplified licensing
- Legal protection under Indonesian law covering intellectual property rights and contractual agreements
- Ability to repatriate profits, dividends, and capital gains
- Favorable ownership structure with direct sales access, legal recognition, and growth potential
How do I register a Foreign Company In Indonesia?
Steps for the Establishment of PT PMA
The registration process involves:
- Determine business activities and secure a company name complying with Indonesian conventions
- Prepare documentation including Articles of Association (Anggaran Dasar) and Investment Plan (Rencana Investasi)
- Apply to BKPM (Indonesian Investment Coordinating Board) online or through regional offices with shareholder information
- Obtain a Deed of Establishment from a notary, which legalizes the PT PMA formation
- Acquire a Taxpayer Identification Number (NPWP) and register for social security programs
- Secure industry-specific licenses including operational permits and environmental clearances
- Register with the Ministry of Law and Human Rights to obtain official legal status
Note: Indonesian shareholders must hold at least 5% of company shares, while foreign shareholders can hold the remainder. A minimum of two shareholders is required.