S & F CONSULTING FIRM LIMITED is an international business consultancy firm incorporated as private limited company in Bangladesh.
Lower Cost
Contact information:
Indonesia, Jakarta
Email: contact@sfconsultingbd.com
Bangladesh
Corporate Office, Dhaka, Bangladesh
Email: contact@sfconsultingbd.com
Mobile: +880 01790220729 or, +880 01790220728
Skype: forhadhossain79 , sfconsultingbd
Service area:
- Foreign company registration ( 100 % foreign owned share, Joint Venture, Branch/ Liason/ Virtual office)
- Legal
- Accounts Audit
- Income Tax
- Company Secretarial
We are all Countries in Asia
Afghanistan, Armenia, Azerbaijan, Bahrain, Bangladesh, Bhutan, Brunei, Burma (Myanmar), Cambodia, China, Georgia, Hong Kong, India, Indonesia, Iran, Iraq, Israel, Japan, Jordan, Kazakhstan, Korea, North, Korea, South, Kuwait, Kyrgyzstan, Laos, Lebanon, Malaysia, Maldives, Mongolia, Myanmar, Nepal, Oman, Pakistan, Philippines, Qatar, Russia, Saudi Arabia, Singapore, Sri Lanka, Syria, Taiwan, Tajikistan, Thailand, Turkey, Turkmenistan, United Arab Emirates, Uzbekistan, Vietnam, Yemen
Investment in Indonesia
All foreign owned companies in Indonesia are classified as PT PMA-s (stands forlimited liability company with foreign direct investment). A company becomes a PMA as long as any of the shares are owned by foreigners.
An exception is representative office where foreign company is exploring business opportunities in Indonesia and is not generating any income from local activities.
In this article we will guide you through the process of registering a PT PMA company. It is based on 150+ inquiries we get each month from foreign investors here at Indosight.
Step 1 – preparation
Before you are ready to start the registration process, there are several important aspects you need to consider. Most importantly:
Foreign ownership limitations
Maximum foreign ownership varies from 0 to 100% and depends on the business classification. The document regulating restricted industries is Negative Investment List (KBLI) and it is updated every few years. Next one is expected to be released in November 2013 and is rumored to be more open than the previous one. More detailed information can be found from our foreign ownership restrictions article.
Minimum capital and investment plan
BKPM (Indonesia Investment Coordinating Board, bureau that is approving foreign investments) requires foreign owned companies to present an investment plan for at least 1.2 million USD. This is a plan and once the PT PMA is registered you will need to start reporting the investment activities every 3 or 6 months depending on your licenses. Minimum 25% (or $300,000) of the investment plan needs to be paid up as capital. This can be either a bank transfer or fixed assets such as machinery. Land and buildings are excluded from the amount. However, in reality you will only need a notary statement letter that once your company is registered you will transfer the funds to your bank account.
Shareholders and corporate structure
Every limited liability company needs at least two shareholders. Those can be both individual or corporate shareholders. In your investment application you will state the amount of shares that will go to each of the shareholder. Additionally you will need to appoint at least one commissioner and director. Commissioner is the supervisor of the director(s) and can easily be a foreigner. At least one of the directors needs to hold Indonesian tax card and this can only be obtained by locals or Indonesian residents (e.g. KITAS holders). Therefore you have an option to either appoint local director, an expat director already having residence permit or use nominee director service until you get your work permit.
Business location
Indonesia is a decentralized country and a lot of the government’s work is done at district level. This means that you will need to decide already before submitting investment application where your business location will be and provide a domicile letter from building owner. Local regulations vary and in some regions, such as Jakarta, domicile letter needs to be from an office building. This means you cannot use your own house as official address for the company. In case you don’t want to rent an office before your company is incorporated, we advise using a virtual officethat provides the official address and optionally even call and mail forwarding and meeting facilities. However, virtual offices are not available everywhere and you need to make sure they are in the same district as your future actual office or you’ll need to reapply for local permits.
Step 2 – incorporating PT PMA
Now that all the preconditions are met you are ready to start PT PMA registration. Be warned that this is a long process and takes usually 10 weeks. Even longer if your business activities require extra licenses but more on that later.
PT PMA registration process
NO.
|
Activities
|
Outcome Documents
|
Expected Timeline (Days)
|
1
|
Request PT PMA name to Ministry of Law & Human Rights of RI
|
PT PMA NAME
|
3 to 4
|
2
|
Review and Preparation of Principal License
|
BKPM PRINCIPAL LICENSE
|
5
|
3
|
Submission and Monitoring Principal Licence
| ||
4
|
Minute of Article of Association of company, for shareholders to sign
|
PT PMA Article of Association
|
2 to 3 (if all shareholders are in Indonesia)
|
5
|
Article of Association from Public Notary
|
1 to 2
| |
6
|
Legalization of Article of Association by Ministry of Law & Human Rights of RI
|
SK KEMKUMHAM
|
21
|
7
|
Domicile of company
|
Domicile Letter from Kelurahan
|
2 to 3
|
8
|
Tax Identification Number
|
NPWP
|
1 to 2
|
9
|
Registration Letter from Directorate General of Taxation
|
SKT
|
1 to 2
|
10
|
PT registered letter to Local Government (DKI Jakarta)
|
TDP
|
14 to 21
|
After this process is completed, you will hold Principal License (Izin Prinsip) which essentially allows youto start running your business in Indonesia and conduct activities such as:
- Open a Corporate Bank Account in Indonesia
- Buying property or other assets on behalf of your company
- Start other preparatiosn for your operation, such as but not limited to: hiring staff, preparing office, etc.
- Proceed a working permit and temporary stay permit for foreign Directors and Commissioners
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