Register PMA Company 2017 – Foreign Investment Company or in Bahasa Indonesia usually abbreviated as PMA, is an activity of putting capital for business activity in Indonesian country which is done by Person or Company which is outside Indonesia.
This foreign investment is carried out fully by foreign capital or joint venture with domestic Investor. A local PT when in its development receive a new foreign investor, either individual or company, then PT it must be changed its status to PT. PMA. Thus, the company must be registered. Furthermore, will be explained about the terms and how to register PMA company 2017.
- Terms for License Principles of Incorporation of PMA Companies
- Submission of Principle Permit to start a new business in the establishment of PT. PMA passes BPKM. To obtain the principle permit must meet the required requirements and fill out the available applications. Identity of the company to be established, including: Name of Company, Regency or City as place of business domicile, Amount of Capital needed to conduct the business, Shareholder name and percentage of capital from each shareholder, and Composition of Directors and Commissioners.
- The submission of this application must meet the application letter online at this link: https://online-spipise.bkpm.go.id/. After finding the username and password, it can fill out an existing application, by preparing documents for foreign Founder or Shareholder, foreign individual or Foreign Legal Entity, namely the Company’s articles of association in Indonesian or English along with all its amendments, ratification or reporting and photocopy of valid passport from individual shareholders.
Meanwhile, for the founder with the status of Indonesian citizens or legal entities of Indonesia, then for the company must meet the company’s articles of association and all its amendments, ratification or reporting. In addition, it also requires the licensing of company standards, namely NPWP / SIUP / TDP Company. For individual Indonesian citizens need personal identity card and NPWP.
- The supporting documents required to complete the requirements are as follows: Flowchart production processes & raw materials required for the industrial process, descriptions / explanations for business continuity processes.
- The original power of attorney, in the matter of the founder is represented by another person or party.
- For an exclusive business field that requires an extra license from a particular agency, the application of the application must be accompanied by a document in the form of; Completeness of other data required by the relevant Ministries and stipulated in Technical Guidance’s book on investment implementation. For certain sectors, for example, the mining sector conducting extraction activities, energy sector, oil palm plantations and fisheries, requires a Recommendation Letter from related technical ministries to register PMA company 2017.
- In the business sector required in the affairs of cooperation or partnership with local parties, it is necessary data support in the form of; Cooperation Agreement, may be Joint Venture, Joint Operation, MOU, etc. between small entrepreneurs and medium or large entrepreneurs who mention the parties, cooperation system, rights and fulfillment.
Statement Letter from a small company that qualifies as a Small Company based on Rule number. 9/1995. After the complete file, new permits can be processed in BKPM. Based on the applicable rules, since the document is complete, approval from the Head of BKPM can be obtained within 12 working days. Principle permits must be followed up with real work execution.
Whichever subject should be supported by filling out the Investment Activity Report which must be filled online and reported on a continuous basis every 3 months. Then, the PMA company performs its activities in a continuous manner, which is proven by the filling of LKPM, then 12 months after the Principle Permit is granted, the PMA company may apply for a Permanent Business License, which applies as well as the Trading Business License to the ordinary company.
- Establishment of PMA Company Establishment. After permission from BKPM exit, then can start the process of establishment of PMA Company, with note, name of PT. can already be used / get the Minister’s approval. A copy of the Deed will be completed within a 2-week period from the signing of the deed.
- Handling of Domicile and taxpayer’s principal number on behalf of the Company concerned. The taxpayer identification number made for a PMA Company shall be a foreign taxpayer’s ID number. It takes about 10 working days. When taking care of this letter, can simultaneously take care of Taxable Entrepreneurs Letter. It takes approximately 12 working days as there is a survey from the local Tax Office of the business location.
- Opening of accounts on behalf of the Company and depositing share capital in cash to the Company’s cash. The deposit documentation is submitted to the Notary for the completeness of the application for approval in the Department of Justice of the Republic of Indonesia.
- Approval or approval of the articles of association to the Ministry of Law and Human Rights of the Republic of Indonesia. In Law no. 40 of 2007 is mentioned is 14 working days from the date of receipt No objection to the Minister. But, with the increasingly sophisticated online system, then the time is only 1 day only. The approval of this Minister also covers registration on the Company Register as mandated by the Act.
- After approval from the Ministry of Justice, the Company Registration Certificate can be maintained within 14 working days.
- After all is done, then the administration of the State News. It takes about 3 months. Time to register PMA company 2017 is indeed long enough and the procedure to be followed is quite complicated.
After all procedures are passed, it must be continued with the type of business. If the type of business is an industry, it must be taken care of Location Permit, Letter of Disturbance (HO), and Industrial Business License. In the case that the company will enter the machinery of the factory, due to the status of PT PMA, there will be tax deductions or tax breaks for those machines.
PT is obliged to take care of Permit again in BKPM, namely: Master list and Temporary Import Identification Number. Then, at the time the machine will enter, Entrepreneur must take care of the duty-free letter at KPP PT PMA, called: “SKBPPN” and then with
permit from Customs in the form of Registration Letter Manufacturer or Importer Registration Letter. At the port later the PMA Company must also take care of PIB. So in general, after the articles of association of PMA companies get approval from the Minister, the PMA Company may start to take care of the licenses related to the PMA Company’s business in BKPM. As follows:
- Import duty facility for machines
- Import tax facility
- Importer Identification Number – General
- Permission to Hire Foreign Workers
- Recommendation for Income Tax Exemption facility
- Foreign Workers’ Use Plans
- Recommended visa for work visa
- Importer Identification Number – Manufacturer
Hopefully a brief explanation of how to register PMA company 2017 can help you. Happy business and always success.