Frequently Asked Questions: #companyestablishment

The key responsibilities of a Company Secretary in Indonesia include:

• Serving as the primary point of contact for company shareholders and officeholders
• Organizing and convening meetings of shareholders, directors, and commissioners as required
• Liaising with notaries public, lawyers, and accountants as needed
• Overseeing the acquisition and renewal of required company licenses and permits
• Providing guidance on work permits and visas
• Communicating with government agencies on behalf of the company
• Maintaining custody of original company documents
• Ensuring overall compliance with Indonesian legal requirements and regulations

Some key differences compared to other countries:

• In Indonesia, the Company Secretary often takes on a more active role in liaising with government agencies and handling regulatory compliance matters. This is due to the complex and frequently changing regulatory environment.

• The Company Secretary in Indonesia may be authorized to serve as President Chairman (komisaris) or President Director, which is less common in other jurisdictions.

• There is a strong emphasis on maintaining proper documentation and records, including custody of original company documents, due to Indonesia’s bureaucratic requirements.

• The role involves more hands-on assistance with immigration matters like work permits and visas, which may be handled separately in other countries.

• The Company Secretary plays an important part in ensuring compliance with Indonesia’s specific corporate governance requirements and reporting obligations.

Overall, the Company Secretary role in Indonesia tends to be broader and more involved in day-to-day regulatory and compliance matters compared to some other countries, reflecting the unique business environment and regulatory landscape in Indonesia.

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The minimum capital requirements for establishing a PMA (Penanaman Modal Asing) company in Indonesia are as follows:

• Total Investment Value: The minimum total investment value for a PMA company is IDR 10 billion (approximately USD 670,000), excluding land and buildings.

• Issued and Paid-up Capital: The minimum issued and paid-up capital is IDR 2.5 billion (approximately USD 167,000).

• Foreign Ownership: If the company is 100% foreign-owned, the entire IDR 2.5 billion must be paid up.

• Joint Venture: In case of a joint venture with local partners, the foreign share must be at least IDR 10 million (approximately USD 670) per shareholder.

• Proof of Capital: The paid-up capital must be deposited in an Indonesian bank account under the company’s name and proven with a bank statement.

• Capital Increase: The remaining IDR 7.5 billion of the total investment value can be gradually injected over time, typically within 1-3 years, depending on the business plan submitted to BKPM (Investment Coordinating Board).

• Exceptions: Some business sectors may have higher minimum capital requirements. It’s essential to check the specific regulations for your intended business activity.

• KBLI Codes: The capital requirements may vary depending on the KBLI (Indonesian Standard Industrial Classification) codes of your business activities.

Remember that these figures are subject to change, and it’s always advisable to consult with a professional or check the latest regulations from BKPM for the most up-to-date information on capital requirements for PMA companies in Indonesia.

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Establishing a PMA company in Indonesia typically takes about 1-1.5 months. Here are the key points regarding the timeline:

• The entire process can be completed in 1 to 1.5 months under the streamlined procedures implemented by the Indonesian government.

• The company can start trading as soon as the tax registration (NPWP) is issued.

• Specific steps in the process have the following estimated durations:

  • Approval of company name: 2 days
  • Deed of Incorporation with notary: 4 days
    
  • Approval of legal entity by Ministry of Law and Human Rights: 3 days
  • Tax ID (NPWP) registration: 3 days
  • Obtaining Business Identification Number (NIB): 1 day

• The process is done via the Online Single Submission (OSS) system, which has helped reduce the overall timeline.

• Okusi Associates states they can establish a PMA company in less than 20 days in many cases.

• Additional licenses or permits specific to certain business sectors may require extra time beyond the basic company establishment.

• Working with an experienced service provider like Okusi Associates can help ensure the process moves as quickly and smoothly as possible.

While the official timeline is 1-1.5 months, in practice it may take 2-3 months in some cases to complete all steps and be fully operational. The exact duration can vary based on the specific circumstances of each company.

URL: https://okusiassociates.com/pma-company-establishment-timeline

#PMAcompany   #companyEstablishment   #businessRegistration   #NPWP   #businessLicenses  

The process for setting up a PMA company in Indonesia involves several key steps:

• Investment Permit: This involves document research, review, and preparation for investment approval.

• Company Incorporation:

  • Preparation of Articles of Incorporation
  • Drafting and notarization of the Deed of Establishment

• Obtaining Operating Licenses and Other Permits:

  • Domicile Certificate
  • Tax Number (NPWP)
  • Company Registration
  • Submission of all required documents and follow-ups

• Document Translations: English translations of all important company documents are provided.

• Bank Account Setup: Assistance in opening corporate bank accounts in Indonesia.

• Business Visa Sponsorship: Free Single Entry Business Visa sponsorships are provided while the company establishment is in progress.

• Additional Support and Advice: Guidance on staff recruitment, community relations, and government relations to help navigate the Indonesian business landscape.

Before initiating the process, it’s crucial to:

• Check the Negative Investment List (DNI) to ensure your business sector is open to foreign investment and to determine if local shareholders are required.
• Consider additional services if needed, such as:
  • Professional (“Nominee”) Shareholder Services if your sector requires Indonesian shareholding
  • Company Domicile Services in Jakarta, Bali, or Batam

After establishment, ongoing support is typically provided for:

• Regulatory compliance
• License renewals
• Accounting and tax services
• Human resources and payroll management
• Corporate secretarial services
• Business expansion support
• Immigration services (work permits and visas)

It’s important to note that the specific requirements and timeline can vary depending on the business sector and location. Working with experienced professionals can help ensure a smooth and efficient process.

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A PMA (Penanaman Modal Asing) company is a type of limited liability company in Indonesia that allows foreign ownership and investment. Key features include:

• It is an Indonesian legal entity that can have any amount of foreign share ownership, from partial to 100% foreign-owned.

• PMA companies are established based on a defined business activity and require approval from the Indonesian Investment Coordination Board (BKPM).

• They allow foreign investors to legally conduct business, generate income, and own assets in Indonesia.

• The percentage of foreign ownership allowed depends on the business sector, as regulated by the Negative Investment List (DNI).

• PMA companies must comply with Indonesian laws and regulations, including obtaining necessary licenses and permits to operate.

• There are minimum capital requirements, generally IDR 10 billion (around USD 700,000) in total investment.

• They can sponsor work permits (KITAS) for foreign employees.

• PMA companies provide foreign investors with legal protection under Indonesian law.

• They allow access to Indonesia’s large consumer market of over 270 million people.

• PMA status is required for foreign entities to legally enter many regulated business sectors in Indonesia.

Overall, a PMA company is the primary vehicle for foreign direct investment in Indonesia, allowing foreign investors to establish a legal presence and conduct business activities in the country.

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The timeline for establishing a PMA (Penanaman Modal Asing) company in Indonesia can vary depending on several factors, but generally, it takes about 2-3 months from start to finish. Here’s a breakdown of the process:

• Pre-application preparation: 1-2 weeks
  • Gathering required documents
  • Checking the Negative Investment List (DNI)
  • Preparing the investment plan
• BKPM application and approval: 3-4 weeks
  • Submitting the investment application to the Indonesian Investment Coordination Board (BKPM)
  • Waiting for approval
• Company registration: 2-3 weeks
  • Registering with the Ministry of Law and Human Rights
  • Obtaining a Domicile Certificate
  • Acquiring Tax Identification Number (NPWP) and Business Identification Number (NIB)
• Obtaining licenses and permits: 2-4 weeks
  • Applying for and receiving necessary business licenses
  • This timeline can vary depending on the specific industry and local regulations
• Bank account setup: 1-2 weeks
  • Opening a corporate bank account

Factors that can affect the timeline include:

• Completeness and accuracy of submitted documents
• Complexity of the business structure
• Responsiveness of government agencies
• Any additional requirements specific to your industry

It’s important to note that working with experienced professionals, such as Okusi Associates, can help streamline the process and potentially reduce delays. They can guide you through each step, ensure compliance with current regulations, and handle much of the paperwork and communication with government agencies on your behalf.

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A PMA (Penanaman Modal Asing) company is a foreign direct investment entity in Indonesia that allows foreign investors to own and operate a business in the country. Key points about PMA companies include:

• Legal structure for foreign investment in Indonesia
• Allows foreign ownership of businesses, subject to certain restrictions
• Regulated by the Indonesian Investment Coordinating Board (BKPM)
• Must comply with the Negative Investment List (DNI) which outlines sectors open or restricted to foreign investment
• Requires a minimum investment amount, typically around USD 700,000 (though this can vary)
• Offers benefits such as the ability to sponsor foreign work permits and conduct business activities across Indonesia
• Subject to specific tax regulations and reporting requirements for foreign-owned entities
• May require local shareholders in certain business sectors, as per the DNI
• Provides a formal structure for foreign investors to participate in Indonesia’s growing economy

Setting up a PMA company involves several steps, including investment approval, company registration, obtaining necessary licenses, and ensuring ongoing compliance with Indonesian regulations. It’s advisable to seek professional assistance when establishing and managing a PMA company to navigate the complex regulatory environment effectively.

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Okusi Associates can provide comprehensive assistance in setting up a PMA (Penanaman Modal Asing) company in Indonesia through the following services:

• Investment Planning: Checking the Negative Investment List (DNI) to ensure your business sector is open to foreign investment and advising on any ownership restrictions.

• Document Preparation: Assisting with the preparation of required documents such as Articles of Incorporation, Deed of Establishment, and Investment Plan.

• Application Submission: Helping submit the investment application to the Indonesian Investment Coordination Board (BKPM).

• License and Permit Acquisition: Guiding you through obtaining necessary licenses and permits, including:

  • Investment Permit
  • Company Registration (TDP)
  • Tax Identification Number (NPWP)
  • Business Identification Number (NIB)

• Bank Account Setup: Assisting with opening a corporate bank account in Indonesia.

• Social Security Registration: Helping register your company and employees for BPJS (social security and health insurance).

• Ongoing Compliance Support: Providing services for:

  • Accounting and Tax Reporting
  • Payroll Management
  • Corporate Secretarial Services

• Work Permits and Visas: Assisting with obtaining KITAS, MERP, and IMTA for foreign employees.

• Professional Shareholder Services: Offering nominee shareholder services if required.

• Company Domicile Services: Providing virtual office services for company registration purposes.

• Post-Establishment Support: Offering ongoing assistance with:

  • Legal and regulatory compliance
  • License renewals
  • HR consultancy
  • Business expansion strategies
  • Product registration
  • Intellectual property protection

By leveraging Okusi Associates’ expertise, you can navigate the complex process of establishing and operating a PMA company in Indonesia more efficiently, ensuring compliance with local regulations and optimizing your business operations.

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Okusi Associates offers comprehensive assistance in setting up a PMA (Penanaman Modal Asing) company in Indonesia, including:

• Investment Permit: Researching, reviewing, and preparing all necessary documents to obtain investment approval from the Indonesian Investment Coordination Board (BKPM).

• Company Incorporation: Preparing Articles of Incorporation and Deed of Establishment in compliance with Indonesian corporate law.

• Operating Licenses and Permits: Obtaining Domicile Certificate, Tax Number (NPWP), Company Registration, and handling all document submissions and follow-ups.

• English Translations: Providing English translations of all important company documents.

• Bank Account Assistance: Helping open corporate bank accounts in Indonesia.

• Business Visa Sponsorships: Offering free Single Entry Business Visa sponsorships during the company establishment process if required.

• Advisory Services: Providing guidance on staff recruitment, community relations, and government relations to help navigate the Indonesian business landscape.

• Professional Shareholder Services: If required, providing a professional corporate shareholder to hold shares until a suitable Indonesian partner is found.

• Company Domicile Services: Offering company domicile services in Jakarta, Bali, and Batam.

Okusi can establish your PMA company in less than 20 days, allowing you to start trading as soon as your company’s tax registration is issued. Their expertise ensures compliance with Indonesian regulations and a smooth entry into the market.

URL: https://okusiassociates.com/how-can-okusi-associates-assist-in-setting-up-a-pma-company

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The costs associated with setting up and maintaining a PMA company in Indonesia include:

Initial Setup Costs: * IDR 30,525,000 for the complete PMA company setup package, which covers: * Investment Permit * Company Incorporation * Operating Licenses and Other Permits * English Translations of Important Documents * Bank Account Assistance * Free Single Entry Business Visa Sponsorships

Additional Costs: * Professional Shareholder Services (if required): IDR 14,430,000/year * Company Domicile Services: * Available in Jakarta, Bali, and Batam * Starting from IDR 12,000,000/year * Accounting and Tax Reporting: * VAT companies: IDR 35,500,000/year * Non-VAT companies: IDR 27,500,000/year * Work Permits and Visas: * Complete package (KITAS, MERP, IMTA): IDR 10,750,000/year

Ongoing Maintenance: * Costs for maintaining regulatory compliance * Expenses related to accounting and tax services * Human resources and payroll management fees * Corporate secretarial services charges

It’s important to note that these costs may vary depending on the specific needs of your company and any changes in regulations. For the most up-to-date and detailed pricing information, it’s recommended to consult the Okusi Associates price list and website directly.

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Foreigners can establish the following types of business entities in Indonesia:

1. Foreign-Owned Limited Liability Company (PT PMA):

• Allows foreign ownership up to 100% in many sectors
• Requires minimum investment of IDR 10 billion
• Needs at least 2 shareholders, 1 director, and 1 commissioner
• Can conduct profit-generating activities

2. Representative Office (KPPA):

• Used for market research and promotion
• Cannot engage in direct sales or revenue-generating activities
• No minimum capital requirement
• Limited to 3-5 year permit duration

3. Foreign Trade Representative Office (KP3A):

• Specifically for assisting with trading activities
• Cannot engage in direct sales
• Can be established in various regions of Indonesia

4. Foreign Construction Services Business Entity (BUJKA):

• For foreign construction companies
• Can participate in large-scale projects
• Must partner with a local Indonesian company

5. Branch Office:

• Extension of foreign parent company
• Limited to certain sectors like banking and oil/gas

The most common choice for foreign investors looking to conduct business activities in Indonesia is the PT PMA. Representative offices are often used as an initial step to explore the market before establishing a full PT PMA. The type of entity allowed depends on the business sector and activities, as regulated by Indonesia’s Positive Investment List.

URL: https://okusiassociates.com/types-of-business-entities-for-foreigners-in-indonesia

#businessEntities   #FDIcompany   #PMAcompany   #foreignInvestmentIndonesia   #companyEstablishment  

In Indonesia, foreigners can establish several types of business entities, each with its own characteristics and requirements:

1. PT PMA (Perseroan Terbatas Penanaman Modal Asing)
   • This is the most common form for foreign investment
   • A limited liability company with foreign shareholders
   • Subject to the Negative Investment List (DNI) restrictions
   • Minimum capital requirements apply
2. Representative Office
   • Types include:
     • Foreign Company Representative Office (KPPA)
     • Foreign Trade Company Representative Office (KP3A)
     • Foreign Construction Services Representative Office (BUJKA)
   • Cannot engage in direct commercial activities or generate revenue in Indonesia
   • Useful for market research, liaison, and promotional activities
3. Branch Office
   • Only available in certain sectors (e.g., banking, oil and gas)
   • Directly controlled by the foreign parent company
   • Limited availability and subject to specific regulations
4. Foreign Investment Limited Partnership (CV PMA)
   • A partnership between foreign and local investors
   • Less common and more restricted than PT PMA
5. Foundation (Yayasan)
   • Non-profit organization
   • Can be established by foreigners for social, religious, or educational purposes
   • Cannot engage in commercial activities
6. Foreign Company Domicile (Badan Usaha Tetap - BUT)
   • A permanent establishment for tax purposes
   • Not a separate legal entity
   • Typically used for specific projects or contracts

When considering which entity to establish, foreigners should:

• Consult the latest Negative Investment List (DNI) to check sector restrictions
• Consider the nature and scope of their intended business activities
• Evaluate minimum capital requirements and investment plans
• Assess long-term business goals and expansion plans in Indonesia

It’s important to note that regulations and requirements can change, so it’s advisable to consult with a professional service provider like Okusi Associates for the most up-to-date information and guidance tailored to your specific business needs.

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