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PT PMA (Foreign Investment Company)

PT PMA is the main license regulating foreign investors’ activities.

It is suitable for projects of any size and investors do not face any limits in their inceptions. Setting up requires a closer look at the Indonesia-based ownership regulations due to the range of limitations.


Limitation for Overseas Company

Some businesses are allowed 100% of open investments, both for national and foreign investors;

Snother 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).


Requirment

  • Paid-up share capital. There is a minimum sum of the paid-share capital

    1. Required Capital According Perka BPKM No4 Year 2021 is become 10,000,000,000 IDR with also has a requirement to declare minimum investment plan 10,000,000,000 IDR.

    2. The first investment shall be injected to the Bank Account of the company once the PT PMA registration is done for the issuance of Capital Statement Letter (see below). The bank account can be filled up gradually as long as your PT PMA is running, and the capital can be used to run your business

  • Capital statement letter.

    • It is the next step after the paid-up share capital and assessment. Each shareholder should sign a special document that allows all the investment campaign participants to specify deposits, bank account for contributions, and other details.

  • The number of shareholders

    • It is worth noting that two and more shareholders are required. There are no other limitations to investors and other representatives of the overseas company.

  • Personnel requirements

    • The directory of the company should include at least one resident of Indonesia. If the director is the only one, he/she could not be a non-resident and in that case, one more chief representative is required – a commissioner. This position can be taken by non-residents.

  • Business location

    • You need to prepare some documentation on the grounds of your overseas company location. Choose your physical address and get local permissions.

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