All limited liability companies with any foreign investment are called PT PMA's. This stands for limited liabilty company with foreign direct investment.
Indosight provides a full company registration service that has proved to guarantee succesful registration. There won't be any hidden fees and you'll find it very easy to work with us.
Indosight is market entry and compliance consultancy in Indonesia.
Founded in 2011, it has quickly become a market leader in setting up foreign companies and work permits due to innovative approach in marketing and outstanding client servicing.
In 2013 alone, more than 50 companies have worked with Indosight, investing total of more than 80 million dollars in Indonesia.
Marlissa Dessy, co-founder of Indosight
Legal presence in Indonesia
PT PMA company will have equal rights and responsibilities as any locally owned LLC company in Indonesia. This allows you to legally do business in Indonesia.
All shareholders, directors and commissioners of PT PMA are eligible to recieve work and residence permit (usually referredto as KITAS) in Indonesia. Once you have permanent business license, you can issue work permits also to the foreign experts working in your company.
IMultiple entry business visas
Once you have a legal entity in Indonesia, foreigners visiting in Indonesia can get a business visa sponsored by your company. This allows foreign employees to visit Indonesia without having to apply for tourist visa each time.
Participate in tenders
If you want to join tenders in Indonesia, it is often either required or recommended to have a legal presence already in Indonesia. This sends a message to the Indonesian partners that you are in Indonesia for long term.
Get import and other business licenses
In order to import goods to Indonesia you will need to have a company. One company can have import license for only one product category.
Be protected against future negative investment list changes
Indonesian laws may be changing all the time but a grandfathering principle applies - once your company is approved you don't need to worry whether your business sector becomes closed to foreign investment in the future.
At this stage our consultant will advise you on several topics that will determine the successful investment application:
Best business classification to apply for based on your activities
Additional business licenses you will need to acquire
This is the actual company registration process. We will submit all the documents on behalf of you to the 7 governmental agencies involved in the incorporation process.
In most cases you won't need to come to Indonesia at this stage and we will regularly update you on the progress.
Duration: usually 10 weeks.
#3 Permanent business license
After the initial approval you will have up to 2-3 years to apply for a permanent business license.
In case your investment plan doesn't involve any long term investments, such as constructing a plant, you can apply for a perment business license immediately after incorporating.
Once you receive permanent business license you are also entitled to hire foreign experts to your company.
There are two key terms in order to understand how much money you need to invest in order to set up a PT PMA - investment plan and paid up capital.
Investment plan In order to protect local small businesses, Indonesia Investment Coordinating Board (BKPM) requires foreign investors to present an investment plan for minimum $US 1.2 million.
Paid up capital However, only 25% (300,000 USD) of that needs to be paid up as capital. Since foreign companies cannot open a bank account before the incorporation process is completed you are only required to present a notary statement letter that the funds will be transfered once the incorporation is complete.
Indosight will handle both your investment plan and notary statement letter.
Maximum foreign ownership depends on the business classification and can be anywhere from 0 to 100%.
The regulating document is Negative Investment List that states what are the classifications where foreign ownership is either restricted or forbidden.
If your business is not in the Negative Investment List, it can be owned up to 100% by foreign investors. In such case you won't have to involve any local partner.
Negative Investment List is updated every few years and our consultants will advise you on what is the best classification for your business based on your business activities and restrictions.
Company registration cost depends on several factors, such as your location and which licenses you will need additionally.
Fill the form below and we'll get back with a quote and overview of the process customized for your industry.
No commitment required at this stage.