For any investors who wish to invest in Indonesia, establishing a PT PMA or foreign company with limited liability can be considered the easiest investment vehicle to choose. In this article, you can read the requirement for new company registration in Indonesia, particularly PMA establishment.
The list below describe the things you have to prepare before doing new company registration in Indonesia.
- Business location: deciding business location is a very important step to do because Indonesia is a country with a decentralized system. The works of government are done within the district level. Each region may have different regulations and a self-owned house cannot be used for official business location. Using a virtual address is allowed, but you have to update it once you get the official address.
- Shareholders: a company with limited liability in Indonesia requires at least 2 shareholders, either corporate or individual or combinations of those. Each shareholder should hold at least 10 million rupiah or approximately 750 USD and it should be mentioned on the application.
- Paid up capital: for a company owned by foreigner, the lowest paid up capital allowed is 2.5 billion rupiah or approximately 190,000 USD. You can prove this capital by transferring the money to the bank account of your company or signing a statement letter with other shareholders.
- Investment plan: you need to prepare and present plan of investment for 10 billion rupiah (approximately 750,000 USD) at least to the Indonesian Investment Coordinating Board for every business classification you applied. The plan must demonstrate your company’s sustainability and include fixed and working capital.
Those are several things you need to prepare before doing new company registration in Indonesia. It is important to do some research about locations, possible shareholders, and local regulations to make sure your registration process is going smoothly.