Setting Up a PT PMA Company in Indonesia: Step by Step
By BaseOne Bali Legal Team
legal-tax2 min read
## Understanding PT PMA
PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the legal entity that allows foreign nationals to own and operate a business in Indonesia. Since the implementation of the Omnibus Law (Job Creation Law) in 2020 and subsequent Government Regulation No. 5/2021, the process has been significantly streamlined through the OSS (Online Single Submission) system.
## Step 1: Choose Your Business Activity (KBLI Code)
Every business in Indonesia must be classified under the KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) system. Your KBLI code determines which licenses you need and whether there are foreign ownership restrictions.
**Popular KBLI codes for Bali investors:** - 56101: Restaurants and food stalls - 55111: Star-rated hotels - 55194: Villa accommodation services - 62011: Computer programming activities - 68200: Real estate activities - 96111: Spa and wellness services
## Step 2: Prepare Required Documents
**For the company:** - Company name (3 alternatives, checked via AHU Online) - Business address in Indonesia (virtual office acceptable for initial registration) - Company deed of establishment (Akta Pendirian) - KBLI code selection
**For shareholders/directors:** - Passport copies (notarized) - Tax ID (NPWP) — can be obtained during the process - Domicile letter (Surat Keterangan Domisili)
## Step 3: Registration Process
1. **Name reservation** via AHU Online (1-2 days) 2. **Deed of Establishment** by Indonesian notary (3-5 days) 3. **Ministry of Law approval** — SK Kemenkumham (7-14 days) 4. **Tax registration** — NPWP company (3-5 days) 5. **OSS registration** — NIB (Nomor Induk Berusaha) and business licenses (1-3 days) 6. **Bank account opening** (7-14 days)
## Step 4: Costs Breakdown
| Item | Estimated Cost | |------|---------------| | Notary fees | $800 - $1,500 | | Government fees | $200 - $500 | | Legal consultant | $1,500 - $3,000 | | Virtual office (annual) | $500 - $1,200 | | KITAS processing | $1,200 - $1,800 | | **Total** | **$4,200 - $8,000** |
## Step 5: Post-Registration Compliance
After establishing your PT PMA, ongoing compliance includes quarterly tax reporting, annual financial statements, LKPM (Investment Activity Report) submission, and maintaining proper bookkeeping. Working with a local accounting firm is strongly recommended.
legal-tax
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