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How to Open Company in Indonesia Enterprise Company

How to Open Company in Indonesia Enterprise Company?

How to open company in Indonesia enterprise company, the question is often asked by some potential foreign investors who want to invest in Indonesia with PMA facilities, but not a few similar questions also raised by the Indonesian people themselves who want to know the ways and procedures set up PT PMA in Indonesia.

Based on the prevailing laws and regulations related to the limited liability company and its implementing regulations and based on the practices that have been happening so here we convey a summary of ways and procedures in establishing PT PMA in Indonesia, among others:

First, the investor should choose the business field to be run in Indonesia, whether the field is allowed or not to be run by other investors, in other words whether the field is included in the negative list or not, what is the maximum limit of foreign ownership, how much capital is needed minimum, where the location is allowed. Those things need to be checked first.

Secondly, if the business field to be run has got certainty then need to find the location of office address or project for company. The address can either buy or rent from an office owner, the office address can also be temporary or permanent.

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Third, checking and ordering the name of PMA that will be used. Checking the name of PT PMA must refer to Government Regulation No. 26 of 1998 dated February 4, 1998 on Usage of PT Name and its amendment.

When the name of PT has been approved which is registered through SISMINBAKUM, then it can be continued by registering investment to BKPM.

How to Build Permanent PMA

Later in this section, we will discuss how to open company In Indonesia enterprise company permanently. Here are the steps to establish PMA.

  1. After the permit from BKPM comes out, the establishment of PT PMA can be started, with the name of the PT can already be used / obtain the approval of the related minister.
  2. A copy of the deed shall be completed within a maximum of two (2) working weeks from the signing of the deed.
  3. Management of domicile and NPWP on behalf of the relevant PT. NPWP made for PT PMA must be special NPWP PT PMA. This process takes approximately 12 business days. In this phase, the entrepreneur can simultaneously take care of the letter of PKP (taxable entrepreneur) on the tax office (KPP). Later will be conducted survey / review the location of the company by the taxation. This process takes 12 working days. This time is needed because there is a survey from the local tax office to the business location.
  4. Opening an account on behalf of the company and depositing its share capital in cash to the company’s cash. The proof of deposit was submitted to the notary for the completeness of the application for ratification at the Ministry of Justice and Human Rights of the Republic of Indonesia.
  5. Approval of approval to the Ministry of Law and Human Rights takes about 1.5 months.
  6. After the approval from the Ministry of Justice and Human Rights, the applicant may exchange the company registration mark (TDP) and compulsory list of companies (WDP). This process takes two (2) weeks.
  7. After all the steps have been finished, live state news management, this process takes about three (3) months.
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After all procedures are passed, proceed with the arrangement related to the type of business. If moving in the field of industry it is necessary to take care of the location permit, meet the rules of disturbance (HO), and industrial business license. If the company enters the machinery of the factory because the status of PT PMA, there will be a subsidy or tax breaks on the import duty of these machines.

However, the PT must take care of the permit again in BKPM, the master list and APIS. After that, when the machine will enter, the concerned must take care of the duty-free letter to KPP PT PMA called “SKBPPN” and continued with the permission from customs in the form of Registry of Producer (SRP) or Registry of Importer (SRI).

In addition to BKPM, there is also answer of how to open company In Indonesia enterprise company as representatives of foreign trading companies whose licenses are submitted to the Ministry of Trade. Representatives of foreign trading companies whose licenses are submitted to the Ministry of Trade are individual Indonesian Citizens or Foreign Citizens who are appointed by Foreign Companies or Foreign Companies Association overseas as their representatives in Indonesia.

A representative of a foreign trading company in Indonesia may be a Selling Agent and / or a Manufacture Agent and / or a Buying Agent (see article 2 of Regulation of the Minister of Trade No. 10 / M-DAG / PER / 3/2006 on Provisions and Procedures for Issuance of Business License of Foreign Trade Representative / “Permendag 10/2006”).

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