Set Up PMA
What is PT Penanaman Modal Asing (PT PMA)
PT Penanaman Modal Asing (PMA) is a limited liability company established under Indonesian law. Regarding foreign investment itself, the Investment Law defines it as an investment activity to carry out business in the territory of the Republic of Indonesia which is carried out by foreign investors, either using foreign capital fully or jointly with domestic investors. Although both are included in the limited liability category, PT PMA has differences with PT in general. In a PT PMA, both foreign citizens and foreign legal entities can establish a PT PMA in Indonesia.
However, in several aspects of the business being run, PT PMA still needs Indonesian citizens and Indonesian legal entities to be able to run its business. For example, the provisions regarding the limits on share ownership by foreigners in the Negative Investment List and regarding the position of a personnel director that are prohibited from being held by foreign workers as stipulated in the Presidential Regulation of the Republic of Indonesia (Perpes) Number 20 of 2018
Things that must be considered in establishing a PT PMA
- Recognizing the company’s business sector. Understanding the company’s business sector is something that needs to be considered before establishing a PT PMA. This is because the business sector has influence on the registration options that can be made, the provisions related to the Negative Investment List, as well as other sectoral provisions relating to the type of business concerned.
- Establishment based on Indonesian law. Foreign investment must be in the form of a limited liability company based on Indonesian law and domiciled in the territory of the Republic of Indonesia, unless otherwise stipulated by law.
- The clarity of the nationality of the founder. In establishing the Company, it is necessary to have clarity regarding the nationality of the founder. Basically, Indonesian legal entities in the form of companies are established by Indonesian citizens or Indonesian legal entities. However, foreign citizens or foreign legal entities are given the opportunity to establish an Indonesian legal entity in the form of a Company as long as the laws governing the Company’s line of business.
- Organizational structure. Based on the Limited Liability Company Law, it is determined that in a limited liability company there is a minimum of a Director, a Commissioner, and two Shareholders.
- Not allowed to provide false information or data. Based on Article 64 of BKPM Regulation Number 6 of 2018 (Perka BKPM 6/2018), in establishing a PT PMA, company leaders and / or their proxies are prohibited from providing false information and / or data.
- Prohibition of making share ownership agreements for and on behalf of others. Based on Article 6 paragraph (6) of Perka BKPM 6/2018, Investors are prohibited from entering into agreements and / or statements confirming that share ownership in a limited liability company is for and on behalf of other people.
Authorized Capital of PT PMA
Provisions for the investment value and capital of PT PMA are regulated in Article 13 paragraph (3) of BKPM Regulation 14/2015 as follows:
The requirements for investment value and capital in the context of PMA as referred to in paragraph (1), unless stipulated otherwise by the Legislation, must meet the following provisions:
- The total investment value is greater than Rp.10,000,000,000.00 (ten billion rupiah), excluding land and buildings as referred to in Article 1 number 4 of Law Number 20 of 2008 concerning Micro, Small and Medium Enterprises:
- For each of the same business sub-categories based on KBLI in 1 (one) project location in 1 (one) Regency / City, specifically for the Industrial sector.
- For each of the same business sub-categories based on KBLI in 1 (one) Regency / City, outside the Industrial sector.
- For projects to expand 1 (one) business field within 1 (one) business group based on KBLI at the same location, the investment value is allowed to be less than Rp.10,000,000,000.00 (ten billion rupiah), provided that the accumulated investment value of all projects in that location have reached more than Rp. 10,000,000,000.00 (ten billion rupiah) excluding land and buildings.
- For the expansion of 1 (one) or more business fields in 1 (one) business sub-group based on KBLI, which do not get facilities or those that get facilities outside the industrial sector, in 1 (one) location in 1 (one) district / city, the value investment is allowed less than Rp.10,000,000,000.00 (ten billion rupiah), provided that the accumulated investment value for all business fields is greater than Rp.10,000,000,000.00 (ten billion rupiah) excluding land and buildings.
- The value of issued capital is the same as the paid-up capital, at least Rp. 2,500,000,000.00 (two billion and five hundred million rupiah).
- Participation in the company’s capital, for each shareholder at least Rp. 10,000,000.00 (ten million rupiah) and the percentage of share ownership is calculated based on the nominal value of the shares.
The applicant’s proof of identity
- Registration for business entities that have registered.
- Deed of incorporation and amendments thereof.
- Ratification of the Company’s Articles of Association from the Ministry of Law and Human Rights
- NPWP of PT.
Description of the activity plan, in the form of:
- Description of the production process that lists the types of materials and is accompanied by a flowchart.
- Description of service sector business activities.
- Recommendations from relevant government agencies, if required.
Requirements PMA + KITAS
- 2 passport share holders
- Address company in Bali
- Name of your Company 3 words
- How many % for share holders
- Business Type ( 3 different )
We will finished the PMA documents and completed for KITAS INVESTOR documents
The documents that we will complete as follows:
- Establishment of minister of law and human rights
- NPWP PMA
- NIB ( Business license/siup, Certificate of Company Registration/tdp, number export import, and all busines permits from OSS (Online Single Submission)
- Open your bank local in Indonesia
Requirements KITAS INVESTOR:
- PMA all documents
- Bank statement min 1.500 USD
- Cover Passport
- Phone and Email
We will process your PMA within 14 days working
included PMA and 1 KITAS investor
- 2 passport share holders
- Address company in Bali
- Choose Name of your company 3 words
- How many %for share holders
- Business type ( 3 different )
We will finished the PMA documents as follows :
- Establishment of Minister of Law and Human Rights
- NPWP PMA
- NIB ( Business license/siup, Certificate of Company Registration/tdp, number export import, and all Business permits from OSS (Online Single Submission)