Setting Up a PT PMA In Indonesia
Expanding into Indonesia requires setting up a PT PMA (Foreign-Owned Limited Liability Company), the recognised structure for foreign businesses to operate and earn revenue locally. While the market offers strong growth potential, the incorporation process involves detailed regulatory approvals and compliance requirements. 3E Accounting simplifies this journey with end-to-end support, ensuring your business is set up efficiently, compliantly, and ready to scale.
What is a PT PMA in Indonesia, and How Does It Work?
In Indonesia, a foreign company is also known as a PT PMA. A PT PMA (Penanaman Modal Asing) is a type of Limited Liability Company (PT) established in accordance with Law No. 40 of 2007 on Limited Liability Companies (Company Law). This business structure allows for partial or full ownership by foreign individuals or entities.
Under Law No. 25 of 2007 on Investment (New Investment Law), foreign investment is defined as any investment activity conducted by foreign investors to operate a business within Indonesia’s territory. A PT PMA serves as the official legal entity that enables foreign individuals, companies, or government agencies to carry out commercial activities in Indonesia, generating revenue and earning profits within the country.
Foreign company registration in Indonesia involves two primary types of legal entities.
Two types of companies fall under this category:
- Limited Liability Companies (LLC) – These are called PT (Perusahaan Terbatas) companies. If your company falls under the limited liability category, the law considers it a PT irrespective of your capital structure type.
- Limited Liability Companies with Foreign Ownership – In this case, the authorities will designate your company as a PT PMA (Penanaman Modal Asing), meaning it remains a limited liability company with foreign ownership.
Local shareholders will not affect your company’s capital requirements. It is only affected if you do not own any shares in the company. The capital you pay will be based on the following:
- A Micro Company: Less than Rp.50 million
- A Small Company: Rp. 50 – 500 million
- A Medium Company: Rp. 500 – 10 billion
- A Large Company: More than Rp10 billion
A PT PMA foreign company only needs to pay 25% of the total equity. If you want to change your capital, you must convert to a locally owned company or increase your existing capital.
Select the services you require for PT PMA (Foreign Company) Setup in Indonesia:
- PT PMA (Foreign-Owned Company) Incorporation Services
- Indonesia Foreign Company (PT PMA) Registration & Setup
- Company Name Reservation & Free Indonesia Company Name Check
- Business Identification Number (NIB) & Business Licensing Application
- Investment & Foreign Ownership Advisory (Sector Restrictions)
- Nominee Structuring & Local Director Services (where applicable)
- Registered Office Address Services
- Corporate Bank Account Opening Assistance in Indonesia
- Tax Registration (NPWP) & Compliance Setup
- Ongoing Corporate Secretarial & Compliance Services
- Accounting, Bookkeeping & Tax Filing Services
Let us take the stress out of establishing your PT PMA by doing the hard work for you. Our professionals have years of industry insight and experience, and this is invaluable when you are starting a business of your own. For more information about our services, contact the 3E Accounting team today.
