5 Easy Tips to Establish a PT PMA for Foreign Investors

Foreign investment in Indonesia must take the form of a Limited Liability Company (PT). Therefore, PT PMA also follows the laws and regulations in Law Number 40 Year 2007 on Limited Liability Companies (PT Law).

PT PMA
A Foreign Investment Limited Liability Company is a limited liability company established under Indonesian law. The capital in this limited liability company can come from foreign capital entirely or in partnership with domestic investors.

However, it is not uncommon for foreign investors to worry about the difficulties in the process and procedures for establishing a PT PMA.

BKPM Initiative
Increasing FDI is one of the major projects in 2020 to 2024, so the Investment Coordinating Board (BPKM), which is tasked with coordinating the implementation of policies and services in the investment sector, has tried to increase the effectiveness of investors to invest and run their business in Indonesia.

Terms of Establishment of PT PMA
Based on the laws and regulations of Law Number 40 Year 2007 on Limited Liability Companies, it is stated that at least PT PMA has 2 shareholders consisting of individuals or legal entities.

The establishment of PT PMA can be done by:
Foreign Citizen (WNA)
Indonesian citizen (WNI)
Foreign legal entity or privtae limited company that has been authorized by the country of origin.
National private legal entity.

However, there are several requirements that must be met for the establishment of a PT PMA, namely:
Deed of establishment from a notary
Decree of Establishment from the Ministry of Law and Human Rights
NPWP
NIB

Tips for Establishing a PT PMA

1. Determining the Name of PT PMA

Determining the name of the PT is an important thing that needs to be considered to start establishing a PT. The name must consist of 3 words, and each word must consist of at least 3 letters. The use of words must also not contain SARA or violate decency or laws in Indonesia.

2. Pay attention to DNI Rules

The Negative Foreign List rules issued by BKPM can change at any time. So it is necessary to pay attention to the fulfillment of certain requirements for the business field or KBLI of PT PMA, especially PKKPR.

3. Investment value and capital requirements

PT PMA needs to determine its authorized capital, issued capital, and paid-up capital. The investment capital of PT PMA must be IDR 10,000,000,000 (ten billion Rupiah). With total business capital excluding the value of land and building.
Ensure the completeness of the file

4. NIB
The identity of business actors plays an important role in conducting business activities. The establishment of PT PMA is required to have NIB and other business licenses.

5. Determine the founders along with the Board of Directors, Board of Commissioners, and Shareholders.