Complete Guide to PT PMA Company Setup in Bali

What is a PT PMA?

A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is an Indonesian limited liability company with foreign ownership. It's the most common legal structure for foreigners who want to operate a business in Indonesia, allowing up to 100% foreign ownership in most sectors.

Unlike other business structures, a PT PMA gives you full control over your company, the ability to sponsor work visas (KITAS) for yourself and employees, and the legal right to conduct business activities in Indonesia.

Minimum Investment Requirements

The Indonesian government has set minimum investment thresholds for PT PMA companies:

• Minimum paid-up capital: IDR 10 billion (approximately USD 625,000)

• Minimum investment value: IDR 10 billion per business line

• Initial paid-up capital: At least 25% of the total investment plan

However, there are exceptions and workarounds. Certain sectors and special economic zones may have different requirements. It's crucial to consult with a local expert to understand the specific requirements for your business type.

Required Documents

To establish a PT PMA, you'll need to prepare:

For Individual Shareholders:

• Valid passport (minimum 18 months validity)

• Current address proof

• Passport-sized photos

• Tax identification from home country

For Corporate Shareholders:

• Certificate of incorporation

• Company registration documents

• Board resolution approving the investment

• Authorized signatory documentation

For the Company:

• Proposed company name (3 options)

• Business activity description

• Company address in Indonesia

• Articles of association

Step-by-Step Process

Step 1: Business Activity Classification

Determine your KBLI (Indonesian Standard Industrial Classification) codes. Your business activities must align with the Positive Investment List, which specifies which sectors are open to foreign investment.

Step 2: Company Name Reservation

Submit three company name options to the Ministry of Law and Human Rights. Names must be unique, in Indonesian or use approved foreign terms, and contain at least three words.

Step 3: Investment Registration (OSS)

Register your investment through the Online Single Submission (OSS) system. This generates your NIB (Business Identification Number), which serves as your company registration, import license, and other basic permits.

Step 4: Deed of Establishment

Work with a licensed Indonesian notary to draft and execute the company's deed of establishment and articles of association.

Step 5: Legal Entity Approval

Submit the notarial deed to the Ministry of Law and Human Rights for approval of legal entity status.

Step 6: Tax Registration

Register for your NPWP (tax identification number) and become a registered taxpayer. If applicable, register for VAT collection.

Step 7: Business Licenses

Depending on your sector, obtain necessary operational licenses. The OSS system will indicate which permits are required for your KBLI codes.

Timeline and Costs

Typical Timeline:

• Company name approval: 3-5 business days

• OSS registration and NIB: 1-2 business days

• Notarial deed execution: 1-2 business days

• Legal entity approval: 7-14 business days

• Tax registration: 5-7 business days

• Total: 4-6 weeks (standard process)

Estimated Costs:

• Government fees: IDR 1-5 million

• Notary fees: IDR 5-15 million

• Professional service fees: IDR 15-50 million

• Virtual office (if needed): IDR 10-25 million/year

Common Mistakes to Avoid

1. Incorrect KBLI codes - Choosing wrong business classifications can limit your activities or require costly amendments later.

2. Insufficient capital documentation - Ensure you can demonstrate the required investment capacity.

3. Using an inappropriate business address - Not all addresses qualify for PT PMA registration. Commercial or virtual office addresses in approved zones are typically required.

4. Overlooking sector restrictions - Some industries have foreign ownership caps or are closed to foreign investment entirely.

5. Neglecting ongoing compliance - After establishment, companies must maintain proper bookkeeping, file regular tax returns, and submit annual reports.

Post-Establishment Requirements

Once your PT PMA is established, you must:

• Maintain proper accounting records in Indonesian Rupiah

• File monthly and annual tax returns

• Submit annual company reports to OSS

• Hold annual general meetings

• Keep corporate records updated with any changes

How MyBali.biz Can Help

Setting up a PT PMA involves navigating complex regulations that change frequently. Our team provides end-to-end support including:

• Business activity consultation and KBLI selection

• Complete document preparation

• Government liaison and submissions

• Notary coordination

• Tax registration and compliance setup

• Ongoing corporate secretary services

Contact us today for a free consultation about your PT PMA setup.