Foreign Company Registration in Indonesia (PT PMA)
Overview
A foreign investment company or PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company that allows foreign individuals and/or entities to own shares in Indonesia. It is the primary legal entity for foreign businesses seeking a direct presence in Indonesian market.
Business Hub Asia offers a complete suite of services for foreign companies registration (PT PMA), streamlining the process from initial ownership structure planning and legal establishment to obtaining necessary business licenses and ensuring full operational readiness, all through a single point of contact.
Get Expert HelpKey Features
Ownership Structure & Business Sector Consultation
Identification of business sectors for foreigners based on the Negative Investment List or DNI (Daftar Negatif Investasi) and Standard Classification of Indonesian Business Fields (KBLI) 2020.
Establishment of Legal Entity (Company Deed, SK Kemenkumham, NPWP/Taxpayer Identification Number (Nomor Pokok Wajib Pajak) )
Preparation of the deed of company establishment by a notary, ratification by the Ministry of Law & Human Rights, and registration of the company's NPWP.
Processing of NIB (Nomor Induk Berusaha) & Business License through OSS-RBA (Online Single Submission Risk-Based Approach)
Registration of Business Identification Number or NIB and Business Licenses specific for each company activity through the risk-based OSS-RBA system.
Company Bank Account Opening & Capital Deposited
Facilitate opening a company bank account for initial capital deposit as a requirement for foreign investment.
Complete Legalities for PMA Operations
Including business domicile, initial Capital Investment Activity Report or LKPM (Laporan Kegiatan Penanaman Modal), and assistance in applying for sectoral licenses if needed (for example: BPOM, Ministry of Health, etc.).
Minimum Requirements
Shareholders
Minimum 2 (individuals or entities). Foreign individuals or companies can act as shareholders.
Directors and Commissioners
Minimum 1 Director and 1 Commissioner. The Director handles daily operations, while the Commissioner is responsible for supervising the company.
Minimum Capital
IDR 10 billion (subject to sector regulations). Proof of investment commitment is required.
Registered Address
Commercial office address. A legal business address must be provided for company registration.
Process and Timeline
1
PMA Structure Consultation & Document Verification
Determine ownership structure, KBLI, and review the completeness of identity documents of shareholders, directors & commissioners. Estimated 1 working day.
2
Company Name Registration
The procedure for registering a company name involves submitting the name through the Ministry of Law and Human Rights online system. Estimated 1 working day.
3
Preparation of Deed of Establishment by Notary
The notary drafts the articles of association, company structure, and shareholder data. The deed of establishment includes the company name, address, business purpose, capital, and ownership. Estimated 2 working days.
4
Ministry of Law and Human Rights Decree Endorsement
Submit the deed to the Ministry of Law and Human Rights (Kemenkumham) to obtain official legal entity status. Estimated 5 working days.
5
Company NPWP & SKT Registration
To obtain an NPWP and SKT (Surat Keterangan Terdaftar), PMA must register for tax at the local KPP office (Kantor Pelayanan Pajak). Estimated 1-2 working days.
6
License Application and NIB Registration through OSS-RBA
Obtain business licenses and NIB through the online OSS-RBA system by submitting documents like a business plan, establishment deed, and proof of capital deposit. Applications will be reviewed by the Indonesian Investment Coordinating Board or BKPM (Badan Koordinasi Penanaman Modal) within 10 working days.
7
Company Bank Account Opening and Capital Deposit
Open an account in the name of the company to deposit initial capital by including documents of the deed of establishment and NPWP. Investors deposit capital following the value stated in the deed (generally ≥ IDR 10 billion for PMA). Estimated 1 working day.
8
Initial LKPM Reporting & Operational Preparation
The foreign company (PMA) submits an initial LKPM reporting to BKPM and prepares operational activities as licensed. Estimated 1 working day.
*The total estimated time is around 4 - 5 weeks
Important Consideration
While a PT PMA offers full ownership rights, businesses must comply with strict sector regulations and investment reporting requirements, which may include obtaining additional operational permits depending on the industry.
Frequently Asked Questions
What is a PT PMA?
PT PMA (Foreign Investment Company) is a form of legal entity for companies established in Indonesia with foreign capital, either partially or wholly.
What are the basic requirements to establish a company in Indonesia?
At least two shareholders, one board of directors, a business domicile, and paid-up capital according to the business sector (generally Rp10 billion or more).
Do I have to be in Indonesia to start the establishment?
No, you don’t. The process can be started remotely. Business Hub Asia can represent you during the legal process.
Are all sectors open to foreigners?
No, they are not. The Indonesian government currently uses DNI policy to determine which sectors are 100% open to foreign investment, which sectors require partnerships with local investors, and which sectors are closed to foreigners. For example, sectors such as non-agency wholesale trade and manufacturing are generally open, while education or media sectors are restricted. Business Hub Asia will help you identify the KBLI classification and understand the foreign ownership provisions as per the latest DPI.
Can I work immediately after the PT PMA is established?
Not yet. You still need an Investor KITAS or Work Permit (KITAS Kerja) to work legally in Indonesia.
Does Business Hub Asia also assist with opening a physical office?
Yes. We assist with office domicile search, virtual office services, and zoning compliance consultation if required.
Are there specific regulations regarding the creation of company names in Indonesia?
The company name must comply with the provisions stipulated by the Ministry of Law and Human Rights, including:
- Written in Latin letters;
- Has not been legally used by another company or is not substantially the same as the name of another company;
- Does not conflict with public order and/or decency;
- It is not the same or similar to the name of a state institution, government institution, or international institution, unless authorized by the institution concerned;
- Does not consist of numbers or series of numbers, letters or series of letters that do not form a word;
- Does not translate literally into a company, legal entity, or civil partnership.
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