Foreign company registration in indonesia

Dec 26, 20120 likes1,333 views

This document summarizes the process for foreign company registration in Indonesia. It explains that a PT PMA is a limited liability company with foreign direct investment. The document outlines requirements such as minimum capital, industry restrictions, and shareholder structures. The standard registration process takes 8 weeks, but some industries allow for express registration in 3-4 weeks. Contact information is provided for questions.

My name is Marlissa
• Indonesian
• Co-founder of
Indosight
• In charge of
Indosight
incorporation service

What is PT PMA?
• PT = limited liability
company
• PMA = foreign direct
investment

• Every PT with foreign
shareholders is a
PMA

photo credit: http://www.flickr.com/photos/marcobellucci/3534516458/

First things first…
• Industry
• Activities
• Business location

photo credit: http://www.flickr.com/photos/foxtongue/2822678678/

Foreigners owning shares
• Defined by Negative
Investment List:
a) Can be owned
100% by foreigners
b) Can be partly
owned by
foreigners
c) Closed to foreigners

photo credit: http://www.flickr.com/photos/the_warfield/4992455554/

What about nominee
arrangements?

• Arrangements where
company has
“fictional”
shareholders are
NOT safe
• No legal protection

photo credit: http://www.flickr.com/photos/56695083@N00/4254036845/

Minimum capital requirements
• Investment plan for 10 billion IDR
• Paid up capital for at least 25% but min.
300,000 USD

• Statement letter is sufficient until
company is registered

photo credit: http://www.flickr.com/photos/seagers/860210865/

Company structure
• At least 2
shareholders
• Both individual and
corporate
shareholders are
acceptable
• Min. one director
• Min. one
commissioner

photo credit: http://www.flickr.com/photos/atomicshed/4434547381/

Duration of registration process
• Standard: 8 weeks
• Express (only for
some industries) 3-4
weeks

Final thoughts…
• marlissa@indosight.com
• www.indosight.com
• @MarlissaD

www.indosight.com/blog

1. A PMA is a PT company established as a joint venture between foreign investors and Indonesian partners. It allows companies to share technology and access local markets while providing specialist local knowledge. 2. However, joint ventures can fail due to conflicts in tax interests or incompatible objectives between partners over time. Integrating a JV into a global strategy can also be difficult. 3. One disadvantage of establishing a PT is the high licensing and organizational complexity required, including notarizing documents and obtaining special permits that increase costs.

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Foreign company registration in indonesia

1. Foreign company registration in Indonesia

2. My name is Marlissa • Indonesian • Co-founder of Indosight • In charge of Indosight incorporation service

3. What is PT PMA? • PT = limited liability company • PMA = foreign direct investment • Every PT with foreign shareholders is a PMA photo credit: http://www.flickr.com/photos/marcobellucci/3534516458/

4. First things first… • Industry • Activities • Business location photo credit: http://www.flickr.com/photos/foxtongue/2822678678/

5. Foreigners owning shares • Defined by Negative Investment List: a) Can be owned 100% by foreigners b) Can be partly owned by foreigners c) Closed to foreigners photo credit: http://www.flickr.com/photos/the_warfield/4992455554/

6. What about nominee arrangements? • Arrangements where company has “fictional” shareholders are NOT safe • No legal protection photo credit: http://www.flickr.com/photos/56695083@N00/4254036845/

7. Minimum capital requirements • Investment plan for 10 billion IDR • Paid up capital for at least 25% but min. 300,000 USD • Statement letter is sufficient until company is registered photo credit: http://www.flickr.com/photos/seagers/860210865/

8. Company structure • At least 2 shareholders • Both individual and corporate shareholders are acceptable • Min. one director • Min. one commissioner photo credit: http://www.flickr.com/photos/atomicshed/4434547381/

9. Duration of registration process • Standard: 8 weeks • Express (only for some industries) 3-4 weeks

10. Final thoughts… • marlissa@indosight.com • www.indosight.com • @MarlissaD www.indosight.com/blog

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Foreign company registration in indonesia

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