If you are a foreign company or individual looking to start a business in Indonesia, a PMA (Penanaman Model Asing) is the safest way to start a business in Indonesia. PMA suitable for projects of any size, and investors do not face any restrictions in their ventures. It will ensure the investor has full control over the direction of the company. There are no restrictions where the company can operate and it reduces the risk in finding a suitable local partner.

Being a foreign owned company the investment value is significantly higher than that of a PT. The investor should invest above USD 1 million / 10 Billion IDR as their investment plan, with a paid-up capital above USD 1 million / 10Billion IDR. The Investment plan can either be cash or fixed assets, such as machinery. The paid-up capital does not need to be paid until after the company is established.

WHAT IS CONSIDERED A FOREIGN COMPANY?

Any organization that is invested by foreign investors (even with 1% of shares owned by foreigners) is considered foreign. Indonesian regulations allow foreign direct investment under the PT PMA license.

However, if you only want to represent a foreign company in Indonesia and will not receive any income from local activities, you can create a representative office instead.

REQUIREMENTS :

• Minimum 2 shareholders.
• Identity and contact details of Company Shareholders.
  • For Indonesian Individuals, KTP and NPWP.
  • For Foreign Individuals, valid passport.
  • For Indonesian Companies, copy of Article of Establishment and the amendments and the Approval from the Ministry of Law and Human Right, Domicile Letter, Tax Id, Business License, Company Registration Certificate(TDP/NIB).
  • For Foreign Companies/entities, copy of Article of Association in English or its translation in Bahasa Indonesia from a sworn translator.
• Identity and contact details of Company Directors and Commissioner.
  • For Indonesian individuals, KTP, NPWP, email and phone number.
  • For Foreign Individuals, valid passport, email and phone number.
• Copy of Lease Agreement between company and building management.

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