Indonesia

Foreign Company Registration (PT PMA – Perseroan Terbatas Penanaman Modal Asing)

We assist foreign investors with setting up a PT PMA in Indonesia, including entity establishment, OSS licensing preparation, and guidance on investment requirements, KBLI selection, and compliance readiness.

Foreign Company Registration (PT PMA – Perseroan Terbatas Penanaman Modal Asing)

Who is it for / Suitable for

01

Foreign individuals or foreign-owned companies wishing to legally operate a business in Indonesia.

02

Investors needing full foreign ownership (subject to the Positive Investment List).

03

Businesses planning to hire employees, issue invoices, import goods, or conduct commercial activities.

04

Suitable for tech, consulting, manufacturing, trading, digital services, hospitality, and many other sectors.

Key Requirements

01
Minimum investment requirement: IDR 10 billion per business activity (including capital, assets, and operational plan).

02
Minimum paid-up capital: IDR 2.5 billion (commonly declared, not always required to be deposited upfront).

03
A registered office address in Indonesia.

04
At least 2 shareholders (can be individuals or corporate).

05
At least 1 director and 1 commissioner (director manages operations; commissioner supervises).

06
Business sector must comply with the Positive Investment List (some sectors may have limits or require local partners).

Clients need to provide the following information / documents

Document Name

Notarized

01
Passport copies of foreign shareholders/directors

Valid for at least 6 months

No

02
Parent company documents (if corporate shareholder)

Certificate of incorporation, AoA

Yes

03
Indonesian office lease agreement

Needed for domicile letter

No

04
Proposed company name (3 options)

Must comply with naming rules

No

05
Business activity selection (KBLI code)

Determines license type

No

06
Shareholding structure & capital investment plan

Required for OSS system

No

07
Power of Attorney (if agent is filing)

Signed by shareholders

Yes, if signed abroad

08
Tax ID (NPWP) for local directors (if applicable)

Required if Indonesian director is appointed

No

Average Processing Time

4–8 weeks

4–8 weeks, depending on business sector and licensing complexity.

What you would get when the application is complete

01
Deed of Establishment (Notarial Deed)

02
Legalization by Ministry of Law & Human Rights (SK Kemenkumham)

03
Tax ID Number (NPWP)

04
Business Identification Number (NIB)

05
Operational/Commercial Licenses (depending on KBLI activity)

06
Company Domicile Letter

On-going Compliance Requirements

After incorporation and licensing, companies must maintain ongoing compliance:

01
Monthly and annual tax filings (VAT, income tax, withholding taxes as applicable)

02
Annual investment activity report (LKPM) submission via OSS

03
Employee payroll tax and BPJS (social security) contributions

04
Renewal or updates of business licenses when business activities change

05
Maintenance of proper bookkeeping and audited financials (for certain company sizes)


Government Agencies Involved

Government agencies involved / overseeing the application:

01
Ministry of Law and Human Rights (Kemenkumham)

Company legalization.

02
Indonesia Investment Coordinating Board (BKPM)

Oversees foreign investment rules (via OSS).

03
Online Single Submission System (OSS – Risk-Based Licensing)

Issues NIB and sector licenses.

04
Tax Office (KPP)

NPWP issuance and tax oversight.

05
Local Government Offices

Issuance of domicile letter and local approvals (if required).

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Your law firm handles our case very well and professional. Your regular updates allow us a peace of mind an dmake us feel like we are cared for. Your professional advise gave us a peace of mind too.

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Your due diligence work for our M&A is done with utmost care and accuracy. It's rare to see such work done by a legal firm in Thailand.

Consult With Our Corporate Advisory Team

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