How Do I Get My Business Recognised?

Corporate Secretary Service Indonesia – The licensing must be done correctly for domestic investors or individuals who want to establish a company. Foreigners (Warga Negara Asing / WNA) who wish to develop their company in Indonesia must follow several stages of the process, following the rules set by the Indonesian government. Here are some complete procedures regarding establishing a company with foreign capital or owned by foreigners (PT PMA).

What Needs to be Prepared Before Establishing a PT PMA?

Before establishing a PT PMA (Perseroan Terbatas Penanaman Modal Asing), there are several things that individuals or groups of foreign investors must do. The first is knowing the Negative Investment List (DNI) in Indonesia. Currently, several business fields are closed or open to foreigners with certain conditions and open without any conditions. The license will not be granted if the type of business is on the list of closed business fields on the Negative Investment List (Daftar Negatif Investasi / DNI.

A recognized PT PMA in Indonesia must have a minimum initial capital of around IDR 10 billion. About a quarter or 25% of this amount must be paid up as Paid-up Capital. Finally, the Domicile of the company must first be determined. A PT PMA can be established when there is a physical building, not a Virtual Office.

PT PMA Registration Procedure in Indonesia

After you have done the above preparations correctly, the next step is to follow several procedures for establishing a PT PMA, as shown below.

1. Apply for a Temporary License

Applying for a Temporary Permit is done to determine whether the business field it will take is permitted with Foreign investment. If it is allowed, then the next stage can be continued. However, if the business cannot be done, then the PT PMA cannot be established. That is why foreign investors must know about the Negative Investment List (Daftar Negatif Investasi / DNI) before applying for a Temporary License.

2. Make Investment Registration at BKPM

When registering with the Investment Coordinating Board (BKPM), prepare several documents as below:

• Certificate from the Embassy of the investor’s home country in Indonesia.
• Scan of passport.
• Articles of Association (AOA) of the company in English. If the Articles of Association are still in Indonesian, they must be translated by a translator.
• Scan of Company Establishment Deed.
• Scan of NPWP / TIN (Tax Identity Number).
• Original Power of Attorney with seal signed directly by the Company’s Board of Directors.

Read Also: How Long Does it Take to Register a Company in Indonesia?

3. Apply for PT PMA Principle License

After the registration is received, the company that will establish PT PMA must prepare several documents for the principal license, which consist of the following:

• Scan of Passports for foreigners.
• Scan of KTP and NPWP for Indonesian citizens.
• Scan of the PBB of the place of business.
• Scan of Contract Letter.
• Certificate of Domicile.
• 3×4 photo of the person in charge of the business (2 sheets).

Along with the above files, also prepare the following:

• Company name that you will use.
• Position and field of business to be registered.
• Total authorized capital and paid-up capital.
• Detailed share composition.
• The composition of the company management.

All documents collected and moved can be uploaded on the official website of BKPM. Later, there will be an official response in approximately twelve (12) weeks.

4. Apply for a Business License

Prepare documents by Article 20 of the BKPM Regulations 2009. The records consist of:

• Examination and testing report (Laporan hasil pemeriksaan dan pengujian / LHPP).
• Copy of Company Establishment Deed.
• Registration Record.
• Copy of NPWP / TIN (Tax Identity Number).
• Proof of Land Use.
• Copy of IMB.
• UUG/ SITU.
• Copy of LKPM.
• Copy of AMDAL.

5. Process After Obtaining a Business License

After everything is complete, the finished PT PMA must be equipped with namely:

• Deed of Establishment of PT.
• NPWP.
• Domicile Certificate.
• Latest bank account.
• TDP.
• State Gazette.

This is a brief review of the procedure for establishing a company in Indonesia for foreigners or foreigners who want to develop their business or provide capital.

Well, related to the difficulty of understanding the legal requirements and the process of establishing PT PMA (Perseroan Terbatas Penanaman Modal Asing), we are from PortCorp fully understand the relevant regulations. Don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!