Types of Legal Entities for Foreign Investors in Republic of indonesia

company registration indonesia pma

PT PMA

If you are a foreign investor that wants total command of your business, then establishing a PT PMA is the best selection you can opt for. PT PMA is the just legal entity in Indonesia that allows 100% strange ownership. Even so, each sector has regulations on their permitted business activities likewise as the maximum amount of shares foreigners can own determined by the Positive Investment List.

General Representative Office (KPPA)

A representative office is suitable for strange investors and business organisation owners that are at the early stage of expanding into Republic of indonesia. RO's let strange businesses to examination the Indonesian marketplace before establishing whatever commercial operations. RO'southward likewise piece of work all-time for non-sales activities, such as customer service support, approaching potential clients, equally well as conducting marketing and brand awareness initiatives.

General Representative Office (KPPA)

Representative Office for Business Trading (KP3A)

Representative Office for Business Trading (KP3A)

KP3A is a representative part that is established specifically for business concern trading. Both general and trading RO's are prohibited from conducting business activities that generate financial income. However, a trading RO may be established in whatever part of Indonesia, whereas a general RO is not able to do and so.

Representative Part for Construction Visitor (BUJKA)

Similar to KP3A's, a BUJKA is a representative office specifically established for strange structure companies. A BUJKA may engage in large-calibration construction projects, but simply under a joint operation with a local company known every bit Local PT. Despite its limitations, a BUJKA is however a good beginning for foreign construction companies to set their footprint in Indonesia, as they are allowed to collaborate on edifice projects without obtaining a structure license (SIUJK).

company registration in indonesia - representative office

The Process of Setting Up a Company in Indonesia

  • Consultation

    Talk to our experts about your expansion objectives in Indonesia.

  • Collecting Required Documents

    Provide usa with all the documents required for company establishment.

  • Document Review

    We ensure your submitted documents are aligned with the latest regulations.

  • Drafting

    We will draft your awarding letter addressed to related government bodies.

  • Documents Submission

    We file all your documents to the related government bodies on your behalf.

  • Registration of Indonesian Tax ID (NPWP)

    An NPWP is required to secure other business licenses, open a depository financial institution account, and fulfilling tax obligations.

  • Obtain Indonesian Business Identification Number (NIB)

    A NIB is required for a visitor to conduct immediate business operations.

  • Deed of Incorporation (For PT PMA)

    A Notary should draft and legalized your Deed of Incorporation.

  • Approval of Legal Entity (For PT PMA)

    After submission of Human action of Incorporation past the notary, the Ministry building of Law and Human Rights volition give approval.

  • Securing Other Licenses (For PT PMA)

    Some sectors and business activities require more specific business licenses and permits. This process can from vii to 20 days, depending on your business sector.

*The estimated time after all the required documents are deemed eligible for submission to the related authorities'south bodies.

Comparisons of Company Establishment Options
for Foreign Investors in Republic of indonesia

  • Allows profit-generating business activities
  • Allows up to 100% foreign ownership
  • Ideal for concern sectors that are open for foreign investment
  • Minimum two shareholders (corporate/private)
  • Minimum one local director
  • Must take at least 1 commissioner (can exist a greenhorn with a valid work allow)
  • Minimum IDR 10 billion of investment
  • At to the lowest degree IDR 10 billion should be provided equally a paid-up capital
  • Full control of business
  • Eligible to sponsor work and stay permit for foreign employee
  • Not immune to generate financial income
  • Allows up to 100% foreign ownership
  • Platonic for testing the waters before setting up a fully-fledged company
  • Works best for not-sales activities
  • No shareholder or director required
  • Ane chief executive is sufficient
  • No capital is required
  • Depression incorporation cost
  • Eligible to sponsor piece of work and stay let for foreign employees
  • Not immune to perform whatever sales and purchase activities
  • Allows up to 100% foreign ownership
  • Platonic for liaising, promotional, and market survey activities
  • No shareholder or director required
  • One chief executive is sufficient
  • No capital is required
  • Low incorporation cost
  • Eligible to sponsor piece of work and stay permit for strange employee
  • Can open a branch office in any part of Indonesia
  • Permitted to appoint in large-calibration construction projects within a joint operation with a Local PT
  • Best suited for the larger global construction companies
  • No local shareholders are required
  • No capital is required
  • Depression incorporation cost
  • Allowed to work on a structure projection in a joint functioning with a Local PT without acquiring a construction license (SIUJK)
  • Eligible to sponsor piece of work and stay permit for foreign employee

What Our Clients Say

michal_jerabek_cekindo business partner

Sedbergh, Ltd.

My Linh Hoangova

ELC Grouping

(CFLD), Mr. Max Yang, President, Indonesian Region

China Fortune Country Evolution Co., Ltd.

DESMI Testimonial - Cekindo

DESMI

Konstantin-Simonov

PT AESK

We were searching for suitable partner for the begining of our operation on Indonesian market place. Later on short exploration and recommendation from our business partners we decided for Cekindo.  Local knowledge, orientation at our business concern problematics, contacts and language.  In a friendly approach combined with professional person service. Consultation earlier the project – avoids then much unnecessary act of "foreigners" worse overview of the Indonesian legislative.

Herewith nosotros want to express our appreciation to PT. Cekindo Business International and their team for all the support on medical devices services so far. We would like to accept this opportunity to thank Cekindo for taking the time to listen to our needs. Whenever a need has arisen, we have e'er received their consistent, timely and quality back up. Nosotros would not hesitate to recommend Cekindo squad for whatever related activity or services.

After comparing several consultants, I found Cekindo is a international and professional system with proficient understanding of local market. Cekindo helped our company to ready our first Indonesian entity, and likewise helps with 24-hour interval-to-day operation.  Cekindo showed high level of professionalism. Spring get-go the business in Indonesia, accept care of routine process, therefore we can focus more on our core business organization.

Cekindo provided outstanding services in registering our representative office in Republic of indonesia in a timely fashion. Their financial services have been helping us a lot — our local employees feel secure working for our visitor. Cekindo became our reliable partner with quick response on our needs. Their flexibility and full support of our business concern in Republic of indonesia are the main reasons to go on in our cooperation.

We chose Cekindo because we considered Cekindo as a professional person company with a good mental attitude and a streamlined business model. Cekindo met all our expectations as information technology created the atmosphere of accountability and transparency. The virtually significant added values that we received from cooperation with Cekindo are the fourth dimension we saved and mistakes we avoided.

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FAQs

As their names propose, the main differences amid three business organization kinds in Indonesia prevarication in the nature of the businesses and the purpose of their incorporation. Owners of a local company (PT) must exist Indonesian citizens equally even 1 percent of strange ownership is not immune. This blazon of companies is not limited to enter any business organisation field, and restrictions on incorporation are not and so tight. On the contrary, a strange-owned visitor (PT PMA) is open for international investors, but the maximal percent of strange share differs in diverse business sectors. Contact Cekindo to get the about updated data on the Negative Investment List. International investors tend to open representative offices equally a first step to understand the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and does not have the right to practise the directly selling and receive income.

Yes, this particularly applies to import and export businesses. Instead of establishing a company, you lot can use an undername import service, likewise known as an importer of tape.

It should have between 1 to 1.5 months.

This depends on the type of company y'all determine to establish.

  • In a local (PT) visitor, a foreigner cannot become a commissioner. It is possible to have a strange director, but there has to be at least 1 local Director in PT.
  • In a foreign-endemic (PT PMA) company, a foreigner can be a managing director or a commissioner.

Yep, it is possible for foreign citizens to aggrandize to Indonesia and set up a strange-owned visitor (PT PMA) in the country. Depending on the business line yous want to pursue, there are regulations for foreigners to follow when establishing a company in Indonesia. Ane of the most important is the so-called Positive Investment Listing which has been—also equally other regulations in Indonesian—updated frequently.