The Procedure for Registering a PT PMA in Indonesia

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The rapidly-growing economy of Indonesia and its strategic location attracts numerous foreign investors to set up business here. The nation ranks along with Southeast Asia’s top economies and has good trade relations with the US, Japan, Singapore, and China. If you plan to invest in Indonesia, you need to understand all the company formation procedures and legal regulations. Another vital factor for running your business profitably is selecting a proper business entity for your company. Indonesia provides three options for registering your business, a representative office, a Local Company, and a Limited Liability Company (PT PMA).

Overseas investors generally prefer the PT PMA structure for their business. It provides them with many advantages, including 0 to 100% foreign ownership, obtaining license permits quickly, and the freedom to hire foreign workers.

The steps involved in registering a PT PMA

To establish a PT PMA, you need to follow these steps:

  • Company name approval: The first step is getting your company name approved by the Ministry of Law and Human Rights and obtaining a Deed of Establishment
  • Domicile processing: The next step involves getting a certificate of Domicile from the Local District Office
  • Tax registration: You need to get a Tax Identification Number (NPWP) from the local tax office
  • Getting a Business Identification Number: All businesspeople require a Business Identification Number or Nomor Induk Berusaha (NIB). The NIB functions as a Business Registry Number, Import License, and Customs Identification Number (NIK)
  • Obtaining a license: The last step involves obtaining an operational and commercial license. Some business types may require more fulfilments.

Company Set-up Costs in Indonesia

The cost of registering a company in Indonesia depends on factors like the type of entity you choose, the location where it is established, and your service provider. The costs are different for a local company (PT), PT PMA company, or Indonesia Subsidiary company.

Due to its multiple advantages, Indonesia has become the most sought-after location for foreign investment. The experienced team of 3E Accounting Indonesia helps entrepreneurs with its expertise in company incorporation processes. It provides all the support needed for businesses to comply with Indonesia’s rules and regulations and smoothens the company set-up procedure.

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