A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company with foreign investment in Indonesia. It is commonly referred to as a foreign-owned company or a foreign direct investment (FDI) company. PT PMA allows foreign investors to establish a legal entity in Indonesia and engage in various business activities. Here’s an overview of PT PMA and the requirements to create one for a foreigner:
1. PT PMA Ownership:
- PT PMA must have at least one foreign shareholder, and the minimum percentage of foreign ownership depends on the business sector and regulations.
- For certain industries, there might be restrictions or requirements for having a local Indonesian partner or obtaining special licenses.
2. Capital Requirements:
- The minimum capital requirement for establishing a PT PMA is determined based on the business sector and location of the company. The capital can be in the form of cash, assets, or a combination of both.
- The capital must be fully paid up before the company’s incorporation.
3. Business Activities:
- PT PMA can engage in a wide range of business activities, depending on the industry, and should be consistent with the business classification in the company’s Articles of Association (Akta Pendirian).
4. Business Plan and Investment Plan:
- A comprehensive business plan and investment plan are required for PT PMA registration. These documents should outline the company’s objectives, operations, and investment projections.
5. Local Representative Office:
- PT PMA must have a local representative office (Kantor Perwakilan) in Indonesia. The representative office is responsible for liaising with Indonesian authorities and is often used as the company’s official address.
6. Board of Directors and Commissioners:
- PT PMA should have a Board of Directors (Direksi) and a Board of Commissioners (Dewan Komisaris). Directors must be individuals, and the Commissioners can be either individuals or corporate entities.
7. Legal Entity and Tax Identification:
- PT PMA must obtain a legal entity and a tax identification number (NPWP) from the Indonesian tax office.
8. Licenses and Permits:
- Depending on the business activities, PT PMA might need to obtain specific licenses and permits from relevant government agencies.
9. Company Registration Process:
- The company registration process involves several steps, including drafting the Articles of Association, obtaining approvals from relevant ministries (if required), and registering the company with the Indonesian Investment Coordinating Board (BKPM) and the Ministry of Law and Human Rights.
Establishing a PT PMA in Indonesia can be but does not have to be a complex process, as long as you hire professional consultants. Foreign investors are strongly advised to seek professional assistance from legal and business consulting firms familiar with Indonesian regulations. Adhering to local laws, understanding the investment restrictions, and having a well-prepared business plan are essential for a successful PT PMA registration.