Indonesia continues to attract foreign investment, with Bali emerging as one of the country’s most sought-after business destinations. Every year, more international
entrepreneurs and investors choose Bali to establish their companies and expand their presence in Indonesia. With the right legal structure and business support, setting up a company in Bali can be a seamless process, opening the door to one of Asia’s fastest-growing markets.
HOW A FOREIGNER CAN REGISTER A BUSINESS IN INDONESIA
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the legal business entity for foreign investors wishing to establish a company in Indonesia. It provides a secure and compliant framework for operating a business, allowing foreign ownership in eligible sectors while supporting long-term growth in the Indonesian market.
FOREIGN OWNERSHIP RESTRICTIONS
Indonesian legislation regulates the maximum allowed foreign ownership. According to the business classification, the percentage of closed and open investments together with asset allocation varies:
some businesses are allowed 100% of open investments, both for national and foreign investors;
another group of overseas projects is allowed closed contributions only;
some business categories require specified percentage rates (for example, 10 % of open investments and 90% of closed ones).
COMPANY ESTABLISHMENT (PT PMA)
Key Requirements for Establishing a PT PMA
Before registering a foreign-owned company (PT PMA) in Indonesia, investors should ensure they meet the following basic requirements.
Minimum Investment
A PT PMA is generally required to have a minimum investment plan of IDR 10 billion (excluding land and buildings) for each registered business activity, in accordance with the applicable investment regulations.
Shareholders & Management
The company must have:
- At least two shareholders
- At least one Director
- At least one Commissioner
Shareholders may be either individuals or corporate entities.
Registered Business Address
Every PT PMA must have a registered business address in Indonesia. This can be a commercial office, business premises, or a licensed Virtual Office, depending on the company’s business activities.
Business Classification (KBLI)
Your business activities must be classified under the appropriate KBLI (Indonesian Standard Industrial Classification) codes, which determine licensing requirements and foreign ownership eligibility.
Documents Required to Establish a PT PMA in Indonesia
To establish a PT PMA (Foreign-Owned Company) in Indonesia, you will need to prepare the following documents:
- Proposed Company Name
- The company name must consist of at least three words, with a minimum of three letters per word.
- Passport Copies
- Copies of the passports of all shareholders, directors, and commissioners.
- Shareholding Structure
- Details of the share ownership composition among shareholders (e.g., 50% – 50%).
- Management Information
- Information regarding the appointed directors and commissioners.
- Company Contact Information
- A company email address and an Indonesian phone number.
- If you do not have these yet, we can assist with email registration and SIM card procurement at no additional cost.
- Proof of Business Address
Please provide one of the following documents:- Office lease agreement
- Land certificate
- Building Approval (PBG) or IMB (for existing properties)
Note: If you use our Virtual Office service, proof of your business address is not required, as the registered address will be provided as part of the service.
The Main Steps of the PT PMA Registration Process
1. Business Activity Assessment
The first step is to review your planned business activities and determine the appropriate KBLI (Indonesian Standard Industrial Classification) codes. This assessment also confirms whether the business is open to foreign investment and the maximum percentage of foreign ownership permitted.
2. Company Incorporation
Once the business activities are confirmed, the Deed of Establishment is prepared and notarized. The company is then registered with the Ministry of Law and Human Rights (MOLHR) to obtain its legal entity status.
3. Tax Registration
After incorporation, the company is registered with the Indonesian tax authority to obtain a Tax Identification Number (NPWP) and fulfill its tax compliance requirements.
4. OSS Registration & NIB Issuance
The company is registered through Indonesia’s Online Single Submission (OSS) system. During this process, the company receives its Business Identification Number (NIB), which serves as the primary business registration and may also function as an import identification number where applicable.
5. Business Licenses & Operational Permits
Depending on the company’s business activities and risk classification, the required operational and commercial licenses are issued through the OSS system, allowing the company to legally commence business operations in Indonesia.
Assistance & Consultancy
Need guidance on setting up a PT PMA in Indonesia? Our experienced team is ready to help you navigate every step of the process, making company registration simple, smooth, and hassle-free.
Fill out the consultation form by clicking the button below, and we’ll connect you with the right specialist based on your business needs.
