STORIES

Most foreign-owned companies establish the Indonesian version of a Limited Liability Company (LLC), which is known as a PMA-Penanaman Modal Asing – in Indonesia, since it can take the form it gives the foreign investor full control over the direction of the company and reduces the risk in finding a suitable local partner.

PMA for Villa as a Commercial & Recreational Facility code is KBLI 55194

The government recently released a new regulation, No. 24 of the Year 2018, which made the incorporation process in Indonesia more open. Previously, you were required to obtain a prior approval from the BKPM in order to set up a PT PMA. The new regulation, however, eliminated this requirement and businesses can now start operating immediately.

Furthermore, the establishment process for most business lines will proceed through a centralized system of One Single Submission, instead of several institutions as it was done formerly.

BENEFITS

1. Completely Independent from Local Partner Issues or Risks associated with leasing from the developer

2. Maintains Freehold Value – Land Titles can be transferred back to Freehold

3. Tax Compliant – This is the major risk that investors do not properly analyse. Read more here.

4.Secure Secure Secure

5. Government Approved

REQUIREMENTS

1. Two shareholders

2. Director

3. Commissioner

4. The Minimum Capital Requirement for a PT PMA is IDR 10,000,000,000, which 25% is deposited as the paid-up capital, meaning 2,500,000,000 (Around $170k USD) must be invested. You only need to sign a statement letter that this will be paid into the company at some point in time.

LICENSES REQUIRED

If there is a Global PMA that has all the local licenses for operation, then there is no need to apply again for the new PMA. This will save a lot of time and money for the villa

 

A.	COMPANY DOCUMENTS REQUIRED	TIMEFRAME	COST (IDR)	REQUIRED
1	Check the name requested does not already exist (Via Notary)	6 HOURS	15,000,000	YES
2	Sign Akta Pendirian dan Perubahan terakhir/Company deed and all the amendments	5 MINUTES	15,000,000	YES
3	SK Menteri kehakiman & HAM /Decree of the Minister of Justice and Human Rights	3 DAYS	15,000,000	YES
4	Domicile of the company – from village office	2 DAYS	5,000,000	YES
5	NPWP/Tax Number		NONE	YES
6	TDP/Certificate of Company Registration		5,000,000	YES
7	ID Card all Director, Commissioner and Share holders (Only needed if local directors)			YES
B.	LOCAL BUSINESS LICENSES REQUIRED
1	ijin Lokasi (jika tanah belum dikuasai) / location permit (if land has not been purchased)		NONE	NO
2	Ijin Peruntukan Penggunaan Tanah /Land Use Permit		NONE	NO
3	UKL/UPL/AMDAL		NONE	NO
4	HO / disturbance permission		NONE	NO
5	IMB/building permit		NONE	NO
6	TDUP/Company Registration of a tourism business	7 DAYS	5,000,000	YES
7	Surat Ijin Usaha Tempat Penjualan Minuman Beralkohol /Business License Place of Sale of Alcoholic Beverages		NONE	NO
8	Surat Ijin Usaha Penjualan Minuman Beralkohol /Alcoholic Beverage Sales License		NONE	NO
9	Ijin pemanfaatan Air Bawah Tanah /Underwater utilization permit		NONE	NO

The new one submission system (OSS) reduces the establishment time of a PT PMA from previous 3-4 months in Jakarta and 6-12 months in other cities to less than one month.

We can set up a PMA for you in Indonesian, quickly and cost effectively, please contact us today