PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company established under the laws of Indonesia. In a PT PMA, Foreigners within the type of individuals and legal entities might be registered as shareholders. Nonetheless some business activities requires Indonesian Citizens or legal entities to hold shares alongside Foreigners.
WHO CAN ESTABLISH PT PMA?
Minimal 2 (two) or more International Individuals, Overseas Entities, Indonesian Citizens, and Indonesian Authorized Entities are allowed to hold shares in PT PMA. PT PMA is the only allowed form of overseas direct funding in Indonesia by overseas investors.
WHY SHOULD YOU ESTABLISH PT PMA?
PT PMA is established by Entrepreneurs so they can conduct the next activities in Indonesia:
1. Start doing business in Indonesia as a legal entity with the identical rights and responsibilities as some other native firm or PT (Perseroan Terbatas).
2. Apply for business licenses to be able to conduct their enterprise directly in Indonesia, corresponding to import, building, manufacture and trade, consultancy, and other services.
3. Join and take part in all tenders in Indonesia.
4. Safe a enterprise entity in Indonesia that’s allowed to hold foreign capital directly, or have international entities as their shareholders, ensuring a professional and bonafide stakeholding construction for financial backers of entrepreneurs.
5. Provide direct sponsorship for Business Visa, Expatriate Work Permit (IMTA) and Stay Permit (KITAS) in Indonesia for foreign Executives and Staff assigned in Indonesia.
WHERE TO ESTABLISH PT PMA?
PT PMA can have its office in throughout Indonesia. Keep in mind that the majority administration and license applications for PT PMA are performed in BKPM (Badan Koordinasi Penanaman Modal) Head Office, which is situated in Jakarta.
In observe, many PT PMA own an Office in Jakarta for correspondence and administrative purposes, and in addition Department Offices in areas of interest for their business operation.
THINGS YOU NEED TO KNOW ABOUT PT PMA
PT PMA have a number of characteristics that separates it from Native Firm corresponding to PT, which are:
1. ORGANIZATIONAL STRUCTURE
PT PMA have to be composed of minimal (2) Shareholders, which will be people or firms, foreign or Indonesian. To symbolize the company in performing all corporate legal actions, there have to be at the very least (1) Director in PT PMA, whose actions are supervised by not less than (1) Commissioner.
2. FOREIGN SHARES OWNERSHIP
Shares of PT PMA might be owned up to a hundred% by overseas investors, pursuant to the Negative Funding List, at the moment Presidential Decree №39 of 2014. Ownership of PT PMA shares are categorized based on the company’s enterprise activities, and varies from 0% to one hundred%.
3. INVESTMENT PLANS
Traders are required to submit an Funding Plan to BKPM before they’ll incorporate a PT PMA in Indonesia. The Funding Plan is the PT PMA business plan once they’re granted approval and are allowed to ascertain in Indonesia. As soon as the Funding Plan is realized, then PT PMA is allowed to apply for Everlasting Enterprise
License (Izin Usaha Tetap) to operate in Indonesia permanently. Earlier than then, PT PMA uses its Investment Plan approval otherwise known as Izin Prinsip as their precept business license in Indonesia, which has the validity period of 1–5 years, relying on the business sectors.
BKPM requires the Funding Plan to be above IDR 10,000,000,000 which is roughly the equal to USD 750,000 to USD 1,000,000 depending on change rates.
4. CAPITAL REQUIREMENT
The minimal Capital Requirement for PT PMA is IDR 10,000,000,000, 25% of which must be deposited as Paid-Up capital, which is IDR 2,500,000,000 or equal to USD 200,000 to USD 250,000 relying on change rates. Learn more about PT PMA Capital Requirement by contacting SMART for any questions regarding the capital amount and deposit procedure.
5. LICENSE REQUIREMENT
License Requirement is specific for every chosen industry. Some business activities require special licenses or technical recommendations before the PT PMA can commence operations. Others may begin select operational activities instantly after incorporation
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