Frequently Asked Questions: #pmacompany

The on-call consultancy service typically addresses a wide range of issues related to PMA companies and business operations in Indonesia, including:

• Due diligence on potential business partners or investment opportunities
• Market intelligence gathering for specific industries or sectors
• Project management support for business expansion or new ventures
• Company status information searches to verify legal standing and compliance
• Guidance on navigating regulatory requirements and changes
• Assistance with interpreting and applying Indonesian business laws
• Support for resolving operational challenges or compliance issues
• Advice on corporate structuring and governance matters
• Clarification on tax obligations and optimization strategies
• Guidance on employment regulations and HR practices
• Support for obtaining necessary licenses and permits
• Assistance with understanding and complying with the Negative Investment List (DNI)
• Advice on foreign investment restrictions and local shareholder requirements
• Guidance on corporate secretarial matters and regulatory filings
• Support for financial reporting and accounting practices

The service aims to provide timely, expert advice to help foreign-owned businesses navigate the complexities of operating in Indonesia’s business environment.

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Okusi Associates offers comprehensive project management services for setting up a manufacturing facility in Indonesia. These services typically include:

• Feasibility Study: Assessing the viability of the project, including market analysis, location scouting, and financial projections.

• Regulatory Compliance: Ensuring all necessary permits and licenses are obtained, including environmental impact assessments if required.

• Company Establishment: Handling the PMA company setup process, including checking the Negative Investment List (DNI) for any restrictions on foreign ownership in the manufacturing sector.

• Land Acquisition: Assisting with land purchase or lease negotiations, due diligence on property titles, and zoning compliance.

• Factory Design and Construction: Coordinating with architects, engineers, and contractors to oversee the design and construction process.

• Equipment Procurement: Helping source and import necessary machinery and equipment, including handling customs clearance.

• Human Resources: Recruiting key personnel, developing HR policies, and ensuring compliance with Indonesian labor laws.

• Supply Chain Setup: Establishing relationships with local suppliers and setting up logistics networks.

• Financial Management: Assisting with capital budgeting, financial forecasting, and setting up accounting systems.

• Legal Support: Providing ongoing legal advice on contracts, intellectual property protection, and regulatory compliance.

• Liaison with Government Agencies: Facilitating communication and compliance with relevant government bodies.

• Risk Management: Identifying potential risks and developing mitigation strategies.

• Timeline and Milestone Management: Creating and monitoring project timelines to ensure timely completion.

• Quality Control: Implementing quality management systems to meet international standards.

• Environmental Compliance: Ensuring the facility meets all environmental regulations and standards.

• Technology Transfer: Assisting with any technology transfer processes required for the manufacturing operation.

• Operational Setup: Helping establish operational procedures and systems for the manufacturing facility.

These services can be tailored to meet the specific needs of your manufacturing project in Indonesia. Okusi Associates would work closely with you to understand your requirements and provide a customized project management solution.

#projectManagement   #manufacturingIndonesia   #regulatoryCompliance   #PMAcompany   #investmentIndonesia  

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.

#PMAcompany   #PMAminumumCapital   #companyEstablishment   #minimumCapitalRequirements   #foreignOwnershipRestrictions  

Okusi Associates provides comprehensive support for ongoing regulatory compliance for PMA companies in Indonesia. Here’s how they can assist:

Regulatory Updates * Keeping clients informed about changes in laws and regulations affecting PMA companies * Providing timely notifications on new compliance requirements

License and Permit Renewals * Assisting with the renewal of business licenses and permits * Ensuring all necessary documentation is prepared and submitted on time

Corporate Secretarial Services * Organizing and documenting annual general meetings as required by law * Maintaining statutory company records and ensuring they are up-to-date

Tax Compliance * Preparing and submitting regular tax returns * Advising on tax obligations and potential changes in tax regulations

Financial Reporting * Assisting with the preparation of financial statements in accordance with Indonesian accounting standards * Ensuring compliance with financial reporting requirements for PMA companies

Employment and Immigration Compliance * Advising on labor laws and employment contracts * Assisting with work permit (KITAS) renewals and visa-related matters for foreign employees

Ongoing Legal Support * Providing guidance on legal matters affecting the company’s operations * Assisting with any necessary amendments to company documents or structures

Liaison with Government Authorities * Acting as a liaison between the company and relevant government agencies * Facilitating communication and compliance with regulatory bodies

By engaging Okusi Associates for ongoing compliance support, PMA companies can focus on their core business activities while ensuring they remain compliant with Indonesian laws and regulations.

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PMA companies in Indonesia are required to conduct financial audits annually. Here are the key points regarding financial audits for PMA companies:

• Annual Requirement: All PMA companies must undergo a financial audit once a year.

• Deadline: The audited financial statements must be prepared within 6 months after the end of the company’s fiscal year.

• Auditor Qualifications: The audit must be conducted by a licensed public accountant registered with the Indonesian Ministry of Finance.

• Scope: The audit covers the company’s financial statements, including the balance sheet, income statement, cash flow statement, and notes to the financial statements.

• Purpose:

  • To ensure compliance with Indonesian Financial Accounting Standards (PSAK)
  • To provide assurance to stakeholders about the company’s financial position
  • To fulfill regulatory requirements for tax reporting and other statutory obligations

• Exceptions: Small companies with total assets or annual revenue below certain thresholds may be exempt from the mandatory audit requirement. However, it’s advisable to consult with a professional or refer to the latest regulations to confirm your company’s status.

• Additional Audits: Some industries or specific circumstances may require more frequent or specialized audits. Always check the regulations specific to your business sector.

• Preparation: It’s recommended to maintain proper bookkeeping and financial records throughout the year to facilitate a smooth audit process.

Remember that while the audit is an annual requirement, maintaining accurate and up-to-date financial records should be an ongoing process throughout the year.

#financialReporting   #PMAcompany   #annualReporting   #compliancecheck  

Okusi Associates provides comprehensive support for ongoing regulatory compliance of PMA companies in Indonesia, including:

• Regulatory Updates: Keeping clients informed about relevant changes in Indonesian laws and regulations that could affect their business operations.

• License Renewals: Assisting with renewing business licenses, permits, and other official documents to ensure continuous legal operation.

• Accounting and Tax Compliance: Providing accounting, bookkeeping, and tax services including general ledger maintenance, financial reporting, tax return preparation and filing, and tax planning advice.

• Corporate Secretarial Services: Helping organize and document annual general meetings and other required corporate meetings, as well as maintaining statutory company records and registers.

• HR and Payroll Compliance: Advising on Indonesian labor laws, employment contracts, and HR policies. Managing payroll calculations, tax deductions, and social security contributions.

• Immigration Compliance: Assisting with obtaining and renewing work permits, business visas, and other immigration documents for foreign staff.

• Product Registration: Supporting registration of products with Indonesian authorities for regulated sectors like healthcare, food and beverages, cosmetics, etc.

• Intellectual Property Protection: Helping register and protect trademarks, patents and copyrights.

By providing these ongoing compliance services, Okusi Associates aims to ensure PMA companies remain fully compliant with Indonesian regulations while allowing them to focus on their core business operations. The firm’s expertise helps companies navigate the complex and changing regulatory landscape in Indonesia.

#regulatoryCompliance   #PMAcompany   #corporateSecretarialServices   #taxCompliance   #workPermitRequirements  

Conducting an internal audit for a PMA company in Indonesia offers several important benefits:

• Regulatory Compliance: Ensures the company adheres to Indonesian laws, regulations, and reporting requirements specific to foreign-owned entities.

• Financial Accuracy: Verifies the accuracy and reliability of financial statements, helping to identify and correct errors or discrepancies.

• Risk Management: Identifies potential risks and weaknesses in internal controls, allowing the company to implement preventive measures.

• Operational Efficiency: Evaluates business processes and procedures, highlighting areas for improvement and cost reduction.

• Fraud Prevention: Helps detect and deter fraudulent activities by reviewing financial transactions and internal controls.

• Investor Confidence: Demonstrates commitment to transparency and good governance, which can be crucial for attracting and retaining investors.

• Tax Compliance: Ensures proper tax reporting and helps identify potential tax savings opportunities within legal frameworks.

• Preparation for External Audits: Makes the company better prepared for mandatory external audits, potentially reducing time and costs associated with these audits.

• Decision-Making Support: Provides management with accurate and timely information for strategic decision-making.

• Asset Protection: Helps safeguard company assets by ensuring proper controls and procedures are in place.

• Continuous Improvement: Establishes a culture of ongoing evaluation and improvement within the organization.

• Stakeholder Trust: Builds trust with stakeholders, including local partners, suppliers, and regulatory bodies.

By conducting regular internal audits, PMA companies can maintain a strong financial position, ensure compliance with Indonesian regulations, and optimize their operations for long-term success in the Indonesian market.

#internalAudit   #PMAcompany   #regulatoryCompliance   #riskManagement   #taxCompliance  

Conducting an internal audit for a PMA company in Indonesia involves several key steps to ensure compliance with local regulations and maintain good financial practices. Here’s an overview of the process:

Preparation Phase: * Determine the scope and objectives of the audit * Create an audit plan and timeline * Assemble the audit team (internal or external auditors) * Gather relevant documents and financial records

Execution Phase: * Review financial statements and accounting records * Examine internal control systems * Assess compliance with Indonesian tax laws and regulations * Evaluate adherence to company policies and procedures * Conduct interviews with key personnel * Perform substantive testing on financial transactions

Analysis and Reporting: * Analyze audit findings and identify any discrepancies or areas of concern * Draft a preliminary audit report * Discuss findings with management and gather responses * Prepare the final audit report with recommendations

Follow-up: * Present the audit report to the board of directors or management * Develop an action plan to address any issues identified * Implement recommended changes and improvements * Schedule follow-up reviews to ensure corrective actions are taken

Key Areas of Focus for PMA Companies: * Compliance with foreign investment regulations (DNI) * Proper maintenance of statutory books and records * Accuracy of financial reporting and tax filings * Adherence to Indonesian accounting standards (PSAK) * Compliance with work permit and visa regulations for foreign employees * Proper documentation of related party transactions * Adherence to capital requirements and investment realization

Best Practices: * Conduct internal audits regularly (at least annually) * Maintain independence and objectivity throughout the audit process * Document all audit procedures and findings thoroughly * Ensure open communication between auditors and management * Stay updated on changes in Indonesian regulations affecting PMA companies

By following these steps and focusing on key areas specific to PMA companies, you can conduct a comprehensive internal audit that helps ensure compliance and identifies areas for improvement in your company’s operations and financial management.

#internalAudit   #PMAcompany   #compliancecheck   #financialReporting   #regulatoryCompliance  

Yes, there are restrictions on foreign ownership in certain business sectors in Indonesia. These restrictions are outlined in the Negative Investment List (DNI), which is a key regulation that foreign investors must consider when establishing a PMA company. Here are the main points to understand:

• The DNI categorizes business sectors into three main groups:

  • Open sectors: Fully open to foreign investment
  • Restricted sectors: Open to foreign investment with certain conditions or limitations
  • Closed sectors: Not open to foreign investment

• Restricted sectors may have limitations such as:

  • Maximum percentage of foreign ownership allowed
  • Requirements for partnerships with local companies
  • Specific location restrictions
  • Special licensing requirements

• Some examples of restrictions include:

  • Certain retail trade sectors: Limited to 67% foreign ownership
  • Construction services: Various ownership limits depending on the specific service
  • Tourism-related businesses: Some subsectors have ownership limits

• The DNI is periodically updated by the Indonesian government, so it’s crucial to check the most recent version when planning your investment

• Even in open sectors, there may be additional regulations or requirements that affect foreign investors

• Some sectors considered strategic or vital to national interests may have more stringent restrictions or be completely closed to foreign investment

• It’s highly recommended to consult with legal experts or investment advisors familiar with the current DNI and related regulations before proceeding with your investment plans

• The full DNI list and detailed explanations can be found on the BKPM (Indonesian Investment Coordinating Board) website or through authorized investment consultants

Always verify the current status of your intended business sector in the DNI before proceeding with PMA company establishment to ensure compliance with Indonesian foreign investment regulations.

#foreignOwnershipRestrictions   #NegativeInvestmentList   #investmentIndonesia   #PMAcompany   #restrictedSectors  

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.

#PMAcompany   #companyEstablishment   #businessRegistration   #investmentApproval   #operationalPermits   #foreignInvestmentIndonesia  

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.

#PMAcompany   #foreignInvestmentIndonesia   #companyEstablishment   #minimumCapitalRequirements   #foreignOwnershipRestrictions  

PMA companies in Indonesia have several ongoing compliance requirements to maintain their legal status and good standing. These include:

Annual Reporting and Filings * Investment Activity Report (LKPM) to be submitted to BKPM every 6 months * Annual tax returns for corporate income tax, employee income tax, and VAT (if applicable) * Annual financial statements to be submitted to the tax office * Annual report to the Ministry of Law and Human Rights

Tax Compliance * Monthly tax payments and reporting for employee income tax and VAT (if applicable) * Quarterly installments of corporate income tax * Withholding tax obligations on various transactions

Employment Regulations * Compliance with Indonesian labor laws, including minimum wage requirements * Regular reporting to the Ministry of Manpower * Work permit (KITAS) renewals for foreign employees

Business Licenses * Renewal of business licenses as required (varies by industry) * Maintaining valid Company Domicile Certificate

Corporate Governance * Holding annual general meetings of shareholders * Maintaining proper company records and minutes of meetings * Updating company information with relevant authorities when changes occur

Foreign Investment Regulations * Adherence to foreign ownership restrictions as per the Negative Investment List (DNI) * Compliance with minimum capital requirements for PMA companies

Industry-Specific Regulations * Compliance with sector-specific regulations and reporting requirements

Bookkeeping and Accounting * Maintaining proper accounting records in accordance with Indonesian accounting standards * Preparing financial statements in Indonesian language and Rupiah currency

To ensure full compliance, many PMA companies engage professional services firms like Okusi Associates for ongoing support in areas such as:

• Accountancy and taxation services
• Corporate secretarial services
• Regulatory compliance monitoring and reporting
• Work permit and visa management for foreign employees

Staying compliant with these requirements is crucial for PMA companies to operate legally and avoid penalties or operational disruptions in Indonesia.

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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.

#PMAcompany   #companyEstablishment   #businessRegistration   #investmentApproval   #BKPM  

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.

#PMAcompany   #foreignInvestmentIndonesia   #companyEstablishment   #investmentRestrictions   #minimumCapitalRequirements  

Yes, foreigners can serve as directors or commissioners in Indonesian companies, including PMA (foreign-owned) companies. However, there are some important considerations:

Directors: * Foreigners can be appointed as directors in Indonesian companies. * At least one director must be an Indonesian resident (not necessarily an Indonesian citizen). * Foreign directors require a valid work permit (KITAS) and stay permit to reside and work in Indonesia.

Commissioners: * Foreigners can also serve as commissioners in Indonesian companies. * There is no residency requirement for commissioners. * If a foreign commissioner performs active duties in Indonesia, they will need a work permit.

Key points to note: * The composition of the board of directors and commissioners must comply with the company’s Articles of Association. * Some business sectors may have specific requirements or restrictions on foreign directors or commissioners. * The appointment of directors and commissioners must be approved by shareholders and properly documented. * Foreign directors and commissioners must have a tax identification number (NPWP) in Indonesia.

Work permit considerations: * Foreign directors working in Indonesia need to obtain: * Limited Stay Visa (VITAS) * Limited Stay Permit (KITAS) * Work Permit (IMTA) * The company must sponsor these permits for the foreign director.

Tax implications: * Foreign directors and commissioners may have tax obligations in both Indonesia and their home country. * It’s advisable to consult with a tax professional to understand the specific tax implications.

Professional support: * Due to the complexities of Indonesian corporate law and regulations, it’s recommended to seek professional assistance when appointing foreign directors or commissioners. * Okusi Associates can provide guidance on compliance requirements and assist with the necessary documentation and permit applications.

Remember to always check the latest regulations, as requirements may change over time.

#foreignDirectors   #foreignCommissioners   #KITAS   #workPermitRequirements   #corporateGovernance   #PMAcompany  

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.

#PMAcompany   #companyEstablishment   #investmentIndonesia   #businessRegistration   #workPermitRequirements   #corporateServices  

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

#PMAcompany   #companyEstablishment   #businessRegistration   #investmentApproval   #businessServices  

The minimum capital requirements for 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 Ventures: For joint ventures with Indonesian partners, the foreign portion of the IDR 2.5 billion must be paid up in proportion to the foreign ownership percentage.

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

• Proof of Capital: The paid-up capital must be deposited in an Indonesian bank account under the company’s name and verified by a public accountant.

• Gradual Investment: The total investment of IDR 10 billion can be realized gradually over time, typically within 1-3 years, depending on the business plan submitted to BKPM (Investment Coordinating Board).

• Capital Increases: Companies can start with the minimum required capital and increase it later as needed.

It’s important to note that these requirements may be subject to change, and certain business sectors or special economic zones might have different capital requirements. Always consult with a qualified professional or the relevant Indonesian authorities for the most up-to-date information regarding your specific business case.

#PMAcompany   #PMAminumumCapital   #minimumCapitalRequirements   #foreignOwnershipRestrictions   #investmentIndonesia  

The Negative Investment List (DNI) is a crucial regulation in Indonesia that affects foreign investment in the following ways:

• Definition: The DNI is a list of business sectors that are either closed or have restrictions for foreign investment in Indonesia.

• Purpose: It aims to regulate and control foreign investment to protect certain sectors of the Indonesian economy and promote local business development.

• Impact on foreign investors:

  • Determines which business sectors are open, partially open, or closed to foreign investment
  • Specifies maximum foreign ownership percentages for partially open sectors
  • May require partnerships with local Indonesian companies in some sectors

• Key considerations:

  • The list is periodically updated by the Indonesian government
  • Some sectors may require a minimum investment amount for foreign participation
  • Certain sectors may have additional licensing or operational requirements

• Examples of restrictions:

  • Some sectors may be completely closed to foreign investment
  • Others may allow only partial foreign ownership (e.g., 49% or 67%)
  • Some businesses may require local partners or shareholders

• Importance for PMA companies:

  • Foreign investors must consult the DNI before planning their investment in Indonesia
  • It helps determine the feasibility and structure of a proposed PMA company
  • Compliance with DNI regulations is essential for obtaining necessary permits and licenses

• Seeking professional advice:

  • Due to the complexity and frequent updates of the DNI, it’s advisable to consult with experts like Okusi Associates for the most current information and guidance on how the DNI affects specific investment plans.

By understanding and adhering to the DNI, foreign investors can ensure their PMA company plans align with Indonesian regulations and avoid potential legal issues or investment restrictions.

#NegativeInvestmentList   #foreignInvestmentIndonesia   #investmentRestrictions   #PMAcompany   #businessSectors  

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.

#PMAcompany   #companyEstablishment   #businessRegistration   #operationalPermits   #accountingServices  

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.

#businessEntities   #PMAcompany   #foreignInvestmentIndonesia   #NegativeInvestmentList   #companyEstablishment  

PMA companies in Indonesia have several tax obligations to fulfill:

Corporate Income Tax (CIT) * Standard rate of 22% on taxable income * Reduced to 20% for public companies with at least 40% of shares traded on the stock exchange * Progressive rates apply for small and medium enterprises

Value Added Tax (VAT) * Standard rate of 11% on taxable goods and services * Certain goods and services may be exempt or subject to different rates

Withholding Taxes * On various payments such as dividends, interest, royalties, and service fees * Rates vary depending on the type of payment and recipient’s tax residency status

Employee Income Tax * PMA companies must withhold and remit income tax for their employees * Progressive rates apply based on the employee’s income level

Annual Tax Return * Must be filed within 4 months after the end of the fiscal year * Extensions may be granted upon request

Monthly Tax Obligations * Regular filing and payment of various taxes (e.g., VAT, withholding taxes) * Due dates vary depending on the specific tax

Transfer Pricing Documentation * Required for transactions with related parties * Must be prepared annually and submitted with the annual tax return

Compliance Requirements * Maintain proper accounting records in Indonesian language * Bookkeeping must be done in Indonesian Rupiah * Financial statements must be prepared in accordance with Indonesian Financial Accounting Standards (PSAK)

Tax Audits * PMA companies may be subject to tax audits by the Indonesian tax authorities * Proper documentation and compliance are crucial to avoid penalties

It’s important to note that tax regulations in Indonesia can be complex and subject to change. PMA companies are strongly advised to seek professional tax advice to ensure full compliance with all tax obligations and to optimize their tax position within the legal framework.

#corporateIncomeTax   #VAT   #taxObligations   #PMAcompany   #taxCompliance   #withholdingTaxes  

Yes, a foreign investor can obtain a KITAS (Kartu Izin Tinggal Terbatas, or Limited Stay Permit Card) without a job offer in Indonesia. This is possible through the following methods:

• Investor KITAS: Foreign investors who own shares in a PMA (Penanaman Modal Asing) company can apply for an Investor KITAS. This type of KITAS is not tied to employment but to the individual’s status as a shareholder in the Indonesian company.

• Requirements for Investor KITAS:

  • The foreigner must be a shareholder in a PMA company
  • The company must be properly established and registered in Indonesia
  • The investment amount should meet the minimum required by regulations (typically around USD 1 million, but this can vary)

• Benefits of Investor KITAS:

  • Allows the investor to stay in Indonesia for extended periods
  • Provides the ability to act as a director or commissioner of the company
  • Does not require a separate work permit (IMTA) for working in the invested company

• Alternative: Retirement KITAS:

  • For individuals aged 55 or older
  • Allows long-term stay without employment
  • Requires proof of pension or sufficient funds to support oneself

• Process:

  • Establish or invest in a PMA company
  • Prepare necessary documents (company registration, proof of investment, etc.)
  • Apply for the Investor KITAS through the immigration authorities
  • May require assistance from a sponsor company or agent

• Duration:

  • Initially granted for 1 or 2 years
  • Can be extended as long as the investment remains active

• Limitations:

  • Investor KITAS holders are generally restricted from working for companies other than the one they’ve invested in
  • Regular reporting and compliance with immigration regulations is required

It’s important to note that immigration regulations can change, and the process can be complex. Working with a professional service provider experienced in Indonesian immigration matters is advisable to ensure compliance and smooth processing of the Investor KITAS application.

#KITAS   #foreignInvestmentIndonesia   #PMAcompany   #visaRequirements   #investmentIndonesia  

Maintaining compliance with Indonesian tax regulations for a PMA company involves several key requirements:

Tax Registration * Obtain a Tax Identification Number (NPWP) upon company establishment * Register for VAT if annual turnover exceeds IDR 4.8 billion

Regular Tax Reporting * Monthly tax reports: * Article 21 Income Tax (for employee withholding) * Article 23/26 Income Tax (for certain services and royalties) * Value Added Tax (VAT) for VAT-registered companies * Annual Corporate Income Tax Return (due within 4 months after fiscal year-end)

Tax Payments * Monthly tax installments based on previous year’s tax liability * Final settlement of annual corporate income tax upon filing the annual return

Bookkeeping and Documentation * Maintain proper accounting records in Indonesian language * Keep financial statements and supporting documents for 10 years * Use Indonesian Rupiah as the bookkeeping currency (special permission required for USD)

Compliance with Transfer Pricing Regulations * Prepare transfer pricing documentation for related party transactions * Submit transfer pricing reports along with the annual tax return

Withholding Tax Obligations * Withhold and remit taxes on various payments (e.g., salaries, dividends, royalties) * Issue withholding tax slips to recipients

Tax Audits * Be prepared for potential tax audits by maintaining comprehensive records * Respond promptly to any tax office inquiries or examination notices

Special Industry Regulations * Comply with specific tax regulations applicable to your industry sector

Tax Incentives and Facilities * Understand and properly apply any tax incentives or facilities granted to your PMA company

Staying Updated * Keep informed about changes in tax laws and regulations * Implement necessary adjustments to comply with new requirements

To ensure full compliance and minimize tax risks, many PMA companies engage professional tax services. Regular reviews and proper documentation are crucial for maintaining good standing with Indonesian tax authorities.

#taxCompliance   #PMAcompany   #indonesianTaxSystem   #taxReporting   #VAT  

Outsourcing accountancy and tax reporting services to Okusi Associates for a PMA company offers several key benefits:

• Expertise in Indonesian Regulations: Okusi Associates specializes in PMA companies and has in-depth knowledge of Indonesian tax laws and accounting standards, ensuring compliance with local regulations.

• Time and Resource Savings: By outsourcing these functions, PMA companies can focus on their core business activities without the need to hire and train in-house accounting staff.

• Reduced Risk of Errors: Professional accountants familiar with Indonesian tax laws are less likely to make costly mistakes in financial reporting and tax filings.

• Up-to-date Compliance: Okusi Associates stays current with changing regulations, ensuring that your company always meets the latest requirements.

• Comprehensive Services: The firm offers both non-VAT and VAT company accounting services, catering to different business needs.

• Regular Reporting: Clients receive monthly, quarterly, and annual financial statements, providing clear insights into the company’s financial health.

• Tax Optimization: Experienced accountants can help identify legitimate tax-saving opportunities within the framework of Indonesian law.

• Audit Preparation: Proper bookkeeping and financial management make it easier to prepare for and pass official audits.

• Scalability: As your PMA company grows, Okusi Associates can adapt their services to meet your changing needs without the need to expand your internal team.

• Local Language Support: Dealing with Indonesian tax authorities and financial documents often requires Indonesian language skills, which Okusi Associates provides.

• Peace of Mind: Knowing that experienced professionals are handling your financial compliance allows you to focus on growing your business with confidence.

By leveraging Okusi Associates’ accountancy and tax reporting services, PMA companies can ensure accurate financial management, regulatory compliance, and potentially beneficial tax strategies tailored to their specific business needs in Indonesia.

#outsourcing   #accountingServices   #taxReporting   #PMAcompany   #regulatoryCompliance  

PMA companies in Indonesia must comply with several tax regulations to maintain good standing. Here are the key requirements:

1. Tax Registration:

• Obtain a Tax Identification Number (NPWP) upon company establishment
• Register for Value Added Tax (VAT) if annual turnover exceeds IDR 4.8 billion

2. Monthly Tax Reporting:

• Submit monthly tax returns for:
  • Corporate Income Tax (PPh 25)
  • Employee Withholding Tax (PPh 21)
  • Other Withholding Taxes (e.g. PPh 23, PPh 4(2))
  • Value Added Tax (PPN) and Luxury Goods Sales Tax (PPnBM) if applicable
• File these returns by the 20th of the following month
• Pay any tax due before filing the returns

3. Annual Tax Reporting:

• Submit annual Corporate Income Tax return (SPT Tahunan PPh Badan)
• File within 4 months after the end of the fiscal year
• Prepare financial statements in accordance with Indonesian Financial Accounting Standards (PSAK)

4. Bookkeeping:

• Maintain proper accounting records in Indonesian language
• Keep books and supporting documents for 10 years

5. Tax Audits:

• Be prepared for potential tax audits by the Indonesian Tax Office
• Maintain complete and accurate documentation to support all transactions

6. Transfer Pricing:

• Prepare transfer pricing documentation if conducting transactions with related parties
• Submit a summary of the transfer pricing documentation with the annual tax return

7. Withholding Obligations:

• Withhold taxes on payments to employees, contractors, and certain transactions
• Remit withheld taxes to the government and provide tax slips to recipients

8. Compliance with Tax Incentives:

• If utilizing any tax incentives, ensure ongoing compliance with specific requirements

9. Tax Representative:

• Appoint a tax representative responsible for the company’s tax compliance

10. Stay Informed:

• Keep up-to-date with changes in Indonesian tax laws and regulations

To ensure full compliance, many PMA companies engage professional tax consultants or accounting firms like Okusi Associates to manage their tax reporting and provide ongoing advice on tax matters.

URL: https://okusiassociates.com/indonesian-accountancy-taxation-vat

#taxCompliance   #PMAcompany   #indonesianTaxSystem   #taxReporting   #VAT  

PMA companies in Indonesia are required to submit various tax reports throughout the year. Here’s an overview of the main tax reporting obligations and their deadlines:

Monthly Tax Reports:

• VAT Return (if registered as a VAT-able company):
  • Due by the 20th of the following month
  • Reports VAT collected and paid
• Employee Income Tax Return (PPh 21):
  • Due by the 20th of the following month
  • Reports income tax withheld from employee salaries
• Withholding Tax Return (PPh 23/26):
  • Due by the 20th of the following month
  • Reports tax withheld on payments to third parties or non-residents

Annual Tax Reports:

• Corporate Income Tax Return:
  • Due within 4 months after the end of the fiscal year (typically April 30th for companies using the calendar year)
  • Reports the company’s annual income, expenses, and tax calculations
• Individual Income Tax Return (for expatriate employees):
  • Due by March 31st of the following year
  • Reports personal income and tax calculations

Other Important Deadlines:

• Tax payments are generally due before the reporting deadline
• For VAT, payment is due by the 15th of the following month

Key Points:

• Consistent and timely reporting is crucial to avoid penalties
• Even if there’s no business activity, “zero reports” must still be filed
• Companies should maintain proper bookkeeping and documentation to support their tax reports
• It’s advisable to work with a qualified Indonesian tax consultant or accountant to ensure compliance

Failure to submit tax reports on time can result in fines and penalties. It’s essential for PMA companies to establish a robust system for tracking and meeting these tax reporting obligations.

#taxReporting   #PMAcompany   #VAT   #incomeTax   #taxCompliance  

PMA companies in Indonesia need to submit tax reports both monthly and annually. Here are the key deadlines:

Monthly Tax Reports:

• Corporate Income Tax (Article 25):
  • Payment deadline: 15th of the following month
  • Reporting deadline: 20th of the following month
• Employee Withholding Tax (PPh 21):
  • Payment deadline: 10th of the following month
  • Reporting deadline: 20th of the following month
• Other Withholding Taxes:
  • Payment deadline: 10th of the following month
  • Reporting deadline: 20th of the following month
• VAT & LGST:
  • Payment deadline: Before the VAT return filing deadline
  • Reporting deadline: End of the following month

Annual Tax Reports:

• Corporate Income Tax:
  • Filing deadline: 4 months after the end of the tax year (typically April 30th for companies using the calendar year)
• Individual Income Tax (for expatriate employees):
  • Filing deadline: 3 months after the end of the tax year (March 31st)

It’s important to note that even if a company has no business activities, it is still required to submit monthly and annual tax reports to remain compliant. Failure to submit reports on time can result in penalties, including fines and interest charges. To ensure compliance and avoid issues, many PMA companies choose to outsource their tax reporting to professional services like Okusi Associates.

#taxReporting   #PMAcompany   #taxCompliance   #corporateIncomeTax   #VAT  

PMA companies in Indonesia have several mandatory tax obligations to fulfill. These include:

• Corporate Income Tax (CIT)
  • Annual tax rate of 22% on taxable income
  • Paid through monthly installments based on the previous year’s tax return
  • Annual tax return must be filed within 4 months after the end of the fiscal year
• Value Added Tax (VAT)
  • Standard rate of 11% on most goods and services
  • Monthly VAT returns must be filed and any VAT payable settled by the end of the following month
• Withholding Taxes
  • Various withholding taxes on payments such as dividends, interest, royalties, and service fees
  • Rates vary depending on the type of payment and recipient’s tax residency status
  • Monthly reporting and payment required
• Employee Income Tax
  • Employers must withhold, report, and pay employee income tax (PPh 21)
  • Monthly reporting and payment, with an annual reconciliation
• Land and Building Tax
  • Annual tax on land and buildings owned by the company
  • Rates vary by region
• Stamp Duty
  • Nominal fee applied to certain documents and transactions
• Local Taxes
  • Various local taxes may apply depending on the company’s location and activities

Key points to remember:

• Tax ID Number (NPWP) is required for all tax-related activities
• Most tax returns are now submitted electronically through the DJP Online system
• Strict deadlines apply for filing returns and making payments
• Penalties can be substantial for late filing or payment
• Proper bookkeeping and financial records are crucial for tax compliance

It’s highly recommended to engage professional tax services to ensure full compliance with all tax obligations and to optimize the company’s tax position within legal boundaries.

#corporateIncomeTax   #VAT   #withholdingTaxes   #taxObligations   #PMAcompany  

Outsourcing accountancy and tax reporting services to Okusi Associates offers several key benefits for PMA companies in Indonesia:

• High-quality, tailored service: Okusi Associates provides personalized solutions based on understanding each client’s specific needs and issues. Their experienced team ensures accurate and compliant financial reporting and tax filings.

• Expertise in Indonesian regulations: Their accountants and tax specialists have in-depth knowledge of Indonesian tax laws, accounting standards, and compliance requirements specific to PMA companies. This helps ensure full compliance and minimizes risks.

• Comprehensive service package: Okusi offers complete packages covering accounting, monthly and annual tax reporting, and auditing services. This integrated approach ensures consistency across all financial processes.

• Time and cost savings: By outsourcing, PMA companies can focus internal resources on core business activities rather than complex accounting and tax matters. This often results in overall cost savings compared to maintaining an in-house team.

• Access to advanced tools: Okusi utilizes high-tech accounting and tax software that may be cost-prohibitive for individual companies to acquire and maintain.

• Scalability: Services can be scaled up or down based on the company’s changing needs, providing flexibility as the business grows.

• Risk mitigation: Their expertise helps minimize errors in financial reporting and tax filings, reducing the risk of penalties or audits.

• Strategic insights: Beyond compliance, Okusi can provide valuable financial insights to support business decision-making and growth strategies.

• Ongoing support: Okusi offers continuous assistance with evolving regulations, tax planning, and addressing any financial queries or issues that arise.

• Peace of mind: PMA companies can have confidence that their accounting and tax obligations are being handled professionally and in full compliance with Indonesian laws.

By leveraging Okusi Associates’ specialized knowledge and resources, PMA companies can ensure accurate financial management and tax compliance while freeing up time and resources to focus on their core business operations and growth in the Indonesian market.

#outsourcing   #accountingServices   #taxReporting   #PMAcompany   #financialReporting