PMA Company Establishment
PMA Company Establishment in Indonesia – Who Is It For and What Are the Benefits?
If you are a foreign individual or company seeking to establish a business in Indonesia, setting up a PMA (Penanaman Modal Asing) company is one of the most secure and efficient options. A PMA company allows you to retain FULL CONTROL over your operations without the need for a local partner. It can operate across all sectors, significantly reducing the risks associated with finding and depending on a local stakeholder.
Key Benefits of Establishing a PMA Company
- Full Foreign Ownership: Maintain 100% ownership of your business as a foreign investor.
- Unrestricted Operations: PMA companies can operate in any sector or location, allowing flexibility across industries.
- Lower Risk: Avoid challenges linked to involving a local partner in your operations.
- Investor KITAS Eligibility: Establishing a PMA may qualify you for an Investor KITAS (temporary stay visa), enabling you to live in Indonesia for business purposes.
Investment Requirements
Starting a PMA company involves significant financial commitment, as it is intended for serious investors. The investment requirements are generally as follows:
- Minimum Investment Value: Above USD 1 million (approximately 10 Billion IDR).
- Paid-up Capital: Above USD 250,000 (approximately 2.5 Billion IDR).
The capital can be invested in cash or fixed assets (such as machinery or equipment). However, the paid-up capital does not need to be fully paid until after the company is established, giving you some flexibility with your funds.
Required Documents for PMA Company Establishment
Here’s a list of the documents you’ll need to provide to establish a PMA company in Indonesia:
Shareholders Information:
- For Indonesian Individuals: Copy of KTP (Indonesian ID card) and NPWP (Tax ID).
- For Foreign Individuals: Copy of valid passport.
- For Indonesian Companies: Copies of the Article of Establishment, Approval from the Ministry of Law and Human Rights, Domicile Letter, Tax ID, Business License, and Company Registration Certificate (TDP/NIB).
- For Foreign Companies: Copy of the Article of Association in English (or translated into Bahasa Indonesia by a sworn translator).
Directors and Commissioner Information:
- For Indonesian Individuals: Copy of KTP, NPWP, and contact details (email and phone number).
- For Foreign Individuals: Copy of valid passport and contact details (email and phone number).
Lease Agreement: A Lease Agreement between your company and the building management, outlining where the business will operate.
Company Establishment Packages
To help you start your business seamlessly, we offer fully serviced packages tailored for different business needs. One of our most popular options is the Startup Package, which includes:
- PMA Company Establishment: Get your company up and running quickly and legally.
- Virtual Office: A registered office address to meet legal requirements.
- Investor KITAS: A special visa for investors, allowing you to reside in Indonesia and manage your business.
For more details about these services and packages, feel free to contact us for further assistance. We can provide additional guidance on how to start your business and help navigate the legal and financial aspects of the process.
The PMA Company is an excellent choice for foreign investors looking to have full control over their business in Indonesia. While the investment requirements are higher compared to other types of companies, the benefits, such as 100% ownership and freedom to operate in any sector, are significant. With the right support and services, starting your business in Indonesia can be a smooth and profitable experience.
