Sentre Legal Solutions

Company Establishment Process

(PT PMA)

• Initial Consultation

  Understanding your business needs and objectives.

• Company Name Submission

  Submitting the proposed company name to the Ministry of Law and Human Rights.

• Signing of the Deed of Establishment

  Executing the Deed of Establishment before a notary.

• Approval from the Ministry of Law and Human Rights

  Obtaining the official approval for the company’s legal entity status.

• Tax Identification Number (NPWP) Registration

  Registering and obtaining the company’s Tax Identification Number from the Tax Office.

• Business Registration via OSS (Online Single Submission)

  Registering the company through the OSS system to obtain the Business Identification Number (NIB).

• Business License Application

  Securing the necessary permits based on the company's business sector.*

• Company Announcement in the State Gazette of the Republic of Indonesia (BNRI)

  Publishing the company’s establishment in the official State Gazette.

Advantages of a PT PMA

• Limited Liability Protection

  Shareholders are only responsible for the company's liabilities up to the value of their respective shareholdings.

• Separation of Personal and Corporate Assets

  A PT maintains a clear distinction between the personal assets of shareholders and the assets of the company.

• Enhanced Professionalism and Credibility

  Operating as a PT enhances the company's image, making it appear more professional and trustworthy to clients, investors, and partners.

• Eligibility for SME Tax Rate

  Newly established PTs may qualify for the Small, and Medium Enterprises (SME) tax rate of 0.5%.

Requirements for Establishing a PT PMA

• Photocopies of the Founders’ ID Cards (KTP) and Tax Identification Numbers (NPWP)

  Required for all shareholders and company founders.

• At Least Three Proposed Company Names

  To be submitted for approval to ensure availability and compliance with naming regulations.

• Complete Business Address

  The physical address that will be officially registered as the company’s place of business.

• Information on Authorized Capital and Paid-Up Capital

  The authorized capital for establishing a PT PMA is set at IDR 10 billion, with the amount of paid-up capital to be determined based on regulatory requirements and business needs.

• Company Organizational Structure

  Details of company officials, including the Director(s), Commissioner(s), and other key roles.

Important Notes

• A PT must have at least one Director and one Commissioner as part of its management structure.

• For smooth corporate administration, a minimum of one local Indonesian citizen (WNI) as a Director is required.

• A PT must be established by a minimum of two shareholders. A shareholder may also serve concurrently as a Director or Commissioner.

• If a husband and wife wish to jointly establish a PT without a prenuptial agreement, a third party must be involved as an additional shareholder to meet legal requirements.

Our Company Establishment Services support international entrepreneurs and foreign-owned businesses looking to expand into our market. We take care of everything from legal registration and local compliance to tax setup ensuring a seamless entry so you can focus on your global growth strategy.

Minimum Paid-Up Capital for Foreign Owned Limited Liability Company (PT PMA)

According to Law No. 40 of 2007, the minimum paid-up capital required for establishing a PT PMA is set at IDR 10 billion.

Key Characteristics of PT PMA

• Foreign Ownership

  A PT PMA can be fully owned by foreign investors or established as a joint venture with local investors.

• Minimum Capital Requirement

  There are specific minimum capital requirements for establishing a PT PMA, which vary depending on the business sector.

• Sector-Specific Restrictions

  Certain industries may impose restrictions on foreign ownership, in accordance with Indonesia’s Negative Investment List.

• Licensing Process

  Establishing a PT PMA involves multiple licensing stages, including approval from the Indonesia Investment Coordinating Board (BKPM) and obtaining necessary permits such as business licenses, location permits, and environmental approvals.

Selection of KBLI Code

The KBLI (Indonesian Standard Industrial Classification) 2020 is the official classification system used in Indonesia to categorize types of economic or business activities. Developed by the Central Bureau of Statistics (BPS), the KBLI serves as a formal reference for business registration. Every company or business entity is required to select and register the KBLI code that accurately reflects its business activities.

Frequently asked questions

What are the regulations for naming a PT PMA in Indonesia?

The name of a PT must be distinct from any other existing company. It must consist of a minimum of three words and be written in the Indonesian language. Additionally, the name must not conflict with public order or decency, and it cannot be identical or similar to the names of government institutions, state agencies, or international organizations.

Does a Notary have to be domiciled at the same address as the PT PMA ?

A Notary may be domiciled anywhere and is not required to reside at the same address as the company.

What is the minimum and maximum number of shareholders required to establish a PT PMA?

According to Law No. 40 of 2007 concerning Limited Liability Companies, a PT must have a minimum of two (2) shareholders at the time of its establishment. There is no maximum limit on the number of shareholders. A PT may have as many shareholders as needed, depending on the company's needs and strategic considerations.

What is the difference between a Director, Commissioner, and Shareholder in a PT PMA?

Director: Responsible for the day-to-day management of the company and decision-making to drive business growth. Appointed by the Board or Shareholders' Meeting.

Commissioner: Oversees and advises the Director, ensuring the company complies with laws and regulations. Appointed by the Shareholders' Meeting.

Shareholder: Owns shares in the company, has voting rights in shareholder meetings, and is entitled to dividends and influence over major decisions.

Can a shareholder serve as a member of the management in a PT PMA?

Yes, under Law No. 40 of 2007 concerning Limited Liability Companies, a shareholder may also serve as part of the company's management.

Why Is It Recommended to Have at Least One Local Indonesian Director (WNI)?

Having a local Indonesian citizen (WNI) as a director in a PT PMA facilitates various corporate administrative processes, including the registration of the company's Tax Identification Number (NPWP).

A local director who already possesses a personal NPWP can help expedite the company's NPWP registration. Their presence often simplifies the verification and validation of documents by tax authorities.