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How To Set up company In Indonesia

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PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability firm established under the laws of Indonesia. In a PT PMA, Foreigners in the form of individuals and legal entities can be registered as shareholders. However some enterprise activities requires Indonesian Citizens or legal entities to hold shares alongsideside Foreigners.

WHO CAN ESTABLISH PT PMA?

Minimum 2 (two) or more Foreign Individuals, International Entities, Indonesian Citizens, and Indonesian Legal Entities are allowed to hold shares in PT PMA. PT PMA is the only allowed type of international direct funding in Indonesia by foreign investors.

WHY SHOULD YOU ESTABLISH PT PMA?

PT PMA is established by Entrepreneurs to allow them to conduct the next activities in Indonesia:

1. Start doing enterprise in Indonesia as a authorized entity with the same rights and responsibilities as another native firm or PT (Perseroan Terbatas).

2. Apply for business licenses to be able to conduct their business directly in Indonesia, reminiscent of import, construction, manufacture and industry, consultancy, and different services.

3. Be a part of and take part in all tenders in Indonesia.

4. Secure a enterprise entity in Indonesia that’s allowed to hold overseas capital directly, or have international entities as their shareholders, ensuring a professional and bonafide stakeholding structure for financial backers of entrepreneurs.

5. Provide direct sponsorship for Enterprise Visa, Expatriate Work Permit (IMTA) and Keep Permit (KITAS) in Indonesia for overseas Executives and Workers assigned in Indonesia.

WHERE TO ESTABLISH PT PMA?

PT PMA can have its office in throughout Indonesia. Keep in mind that almost all administration and license applications for PT PMA are carried out in BKPM (Badan Koordinasi Penanaman Modal) Head Office, which is located in Jakarta.

In practice, many PT PMA own an Office in Jakarta for correspondence and administrative functions, and likewise Branch Offices in areas of interest for his or her enterprise operation.

THINGS YOU NEED TO KNOW ABOUT PT PMA

PT PMA have several characteristics that separates it from Native Firm akin to PT, which are:

1. ORGANIZATIONAL STRUCTURE

PT PMA should be composed of minimum (2) Shareholders, which can be individuals or companies, international or Indonesian. To symbolize the corporate in performing all corporate authorized actions, there should be no less than (1) Director in PT PMA, whose actions are supervised by at least (1) Commissioner.

2. FOREIGN SHARES OWNERSHIP

Shares of PT PMA could be owned as much as 100% by overseas investors, pursuant to the Negative Funding List, currently Presidential Decree №39 of 2014. Ownership of PT PMA shares are categorized based mostly on the company’s business activities, and varies from 0% to one hundred%.

3. INVESTMENT PLANS

Traders are required to submit an Investment Plan to BKPM before they’ll incorporate a PT PMA in Indonesia. The Funding Plan is the PT PMA business plan once they are granted approval and are allowed to determine in Indonesia. As soon as the Investment Plan is realized, then PT PMA is allowed to use for Permanent Business

License (Izin Usaha Tetap) to operate in Indonesia permanently. Before then, PT PMA makes use of its Funding Plan approval otherwise known as Izin Prinsip as their principle enterprise license in Indonesia, which has the legitimateity period of 1–5 years, relying on the enterprise sectors.

BKPM requires the Investment Plan to be above IDR 10,000,000,000 which is roughly the equal to USD 750,000 to USD 1,000,000 depending on change rates.

4. CAPITAL REQUIREMENT

The minimum Capital Requirement for PT PMA is IDR 10,000,000,000, 25% of which must be deposited as Paid-Up capital, which is IDR 2,500,000,000 or equal to USD 200,000 to USD 250,000 depending on trade rates. Be taught more about PT PMA Capital Requirement by contacting SMART for any questions relating to the capital amount and deposit procedure.

5. LICENSE REQUIREMENT

License Requirement is particular for each chosen industry. Some enterprise activities require special licenses or technical recommendations earlier than the PT PMA can commence operations. Others may start select operational activities instantly after incorporation

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