Choosing Between PT and PMA Company in Indonesia
When a foreigner decides to start a business in Indonesia, they have two alternatives. They are the PT & PMA. The PT is a local company based on the concept, and PMA Indonesia is a foreign-owned company. Because Indonesia is a bureaucratic country, the Badan Koordinasi Penanaman Modal regulates and monitors all foreign investments. The Indonesia Investment Coordinating Board is another name for BKPM. If you form an Indonesian corporation, it will be governed by Indonesia Company Law No. 40 of 2007.
Choosing Between PT and PMA: What Is a Local Company (PT)?
One of the most well-known local business organizations is a PT firm. This local company option is available to locals who want to start a business. According to the legislation of the area, it is a limited liability corporation. As a result, only nationals of the country are allowed to register as shareholders and possess shares. Many entrepreneurs pick the PT option since it is one of the few business organizations in Indonesia that will enable you to operate your firm.
What is a Foreign-Owned Company (PT PMA)?
PT PMA is also known as a Foreign-Owned Company. This is a legal corporation formed under Indonesian law that allows foreign investors to do business in Indonesia to generate income or profit. Many industries in Indonesia are accessible to international investment, and as a result, the value of investments has risen dramatically in recent years.
Some sectors are off-limits to foreigners due to specific limitations. The Indonesia Negative Investment List lists the banned industries. The Negative Investment List (DNI) in Indonesia was created to protect the country’s economy and local businesses.
Advantages of PT PMA company formation:
- You can start conducting business almost instantly.
- Locally, you’ll have the same duties and rights as other businesses.
- All Indonesian tenders are open to you as long as you meet the tender requirements.
- Product registration and business permits can both be applied for.
Contact Us for Jumpstarting Your Business
If you don’t grasp the local language and regulations, the rules in Indonesia might look complex. That is a common problem when doing business in another country, and it is why we are here to assist you.
Allow us to relieve the stress of establishing your PT and PMA in Indonesia by taking care of the legwork for you. Our experts have years of industry knowledge and expertise for establishing your firm. Contact 3E Accounting now for more information about our services.