Are you looking to establish a business in Indonesia? If so, you might have come across the term PT PMA. In this article, we will discuss everything you need to know about PT PMA in English. From its definition, benefits to the steps involved in setting it up, we will cover it all.
What is PT PMA?
PT PMA stands for Perseroan Terbatas Penanaman Modal Asing, which translates to a foreign investment limited liability company. It is a legal entity in Indonesia that allows foreign entrepreneurs to invest and do business in the country. PT PMA is regulated under Indonesia’s Investment Law No. 25/2007.
One of the significant benefits of PT PMA is that it provides foreign entrepreneurs with the same legal status as a local company. This means that they can operate and earn profits in the country without worrying about legal hurdles.
The Benefits of Setting Up PT PMA
Setting up PT PMA comes with several benefits. Some of them include:
- Full foreign ownership – PT PMA allows foreign entrepreneurs to own up to 100% of the company.
- No minimum capital requirement – While Indonesia requires local companies to have a minimum capital, PT PMA has no such requirement, making it easy for foreign investors to set up their business.
- Tax incentives – PT PMA is eligible for tax incentives, including tax holidays and tax allowances.
- Access to the Indonesian market – With PT PMA, foreign entrepreneurs can access the Indonesian market, which has about 270 million people.
How to Set Up PT PMA?
Setting up PT PMA requires several steps, including:
1. Getting the Necessary Licenses and Approvals
Before setting up PT PMA, you need to obtain various licenses and approvals from the relevant government agencies. Some of the licenses include:
- Deed of Establishment
- Articles of Association
- Company Registration Certificate (TDP)
- Tax ID Number (NPWP)
You also need to obtain approvals from the Indonesia Investment Coordinating Board (BKPM) and the Ministry of Law and Human Rights.
2. Getting a Local Partner
While PT PMA allows for 100% foreign ownership, some business sectors require a local partner. These sectors include transportation, tourism, and agriculture, among others. Thus, it is crucial to find a reliable local partner who can help you navigate the local market.
3. Registering with the BKPM
After obtaining the necessary licenses and approvals, you need to register with the BKPM. Registering with BKPM requires the submission of various documents, including:
- Deed of Establishment
- Articles of Association
- Approval from the Ministry of Law and Human Rights
- Approval from the relevant government agencies
4. Opening a Bank Account
After registering with the BKPM, you need to open a bank account in Indonesia. This account is essential for conducting business transactions.
5. Applying for Business Licenses
Depending on the type of business, you may need to obtain additional licenses from the relevant government agencies. For example, if you plan to operate a restaurant, you need to obtain a restaurant business license from the local government.
Conclusion
Establishing PT PMA in Indonesia can be a daunting task, but it comes with several benefits. From full foreign ownership to tax incentives, PT PMA provides a gateway for foreign entrepreneurs looking to invest in Indonesia. By following the steps outlined in this guide, you can set up PT PMA and gain access to the Indonesian market.