The PMA Company along with the Negative List in Indonesia
Below we will clarify of which the process is usually certainly comprehensive, nevertheless easy to understand; actually only demanding a lot of paperwork along with accurate homework.
What kind of expat wants to set up a company in Indonesia? There are several groups; we name the most common ones. See if you belong to one, along with if not, you can still use This specific article to get an idea of the process:
- Expats at the end of their employment agreement along with who don’t want to leave Indonesia yet, for their own reasons.
- Expats already legally living in Indonesia who want to set up their own company, as a side job.
- Foreigners (investors) still abroad, who want to invest in Indonesia.
- Expats who want to own a house or apartment without nominees.
There are two different types of companies suitable for expats. Both are legal limited liability companies, know with the abbreviation PT (Perseroan Terbatas).
- The PT PMA or foreign direct investment company, for expats who want to invest with their own money, own the shares themselves, work inside company themselves along with don’t want to have to deal with nominees or additional legal constructions. In short, expats who want a transparent along with direct ownership.
- The PT PMDN or local company, for expats who aren’t using local Indonesians as nominees. In This specific article we only handle the PMA.
On the Internet one can find numerous articles about how to establish a company, some with detailed information, along with if one wants to know more, just surf your brand new company together. We recognize four phases inside setup of a company.
General overview of company setup phases along with the respective documents (licenses, permits, registrations) needed.
*This specific article is usually for expats that has a desire to establish little- or medium-sized companies, so we cease discussing the large company requirements along with the special documents those companies need. We use abbreviations, as most Indonesian stakeholders only know these Indonesian abbreviations.
Realize how many documents are actually needed; 11 for the establishment of the company along with 24 if expats are hired. All applications go with attachments along with This specific is usually only for a normal company:
1.Planning phase
- Application along with registration of company name (BP Nama)
- Submission of investment application with BKPM
- Presentation of Investment
- Initial Approval through BKPM (Izin Prinsip)
2. Establishment phase
- Draft of the Articles of Association (AoA)
- Deed of establishment through notary (Akta Perusahaan)
- Approval along with legalization of Deed along with AoA through Minister of Justice (SK)
3. Registration phase
- Letter of Domicile of company (LOD)
- Tax Identification Number (NPWP)
- Tax Registration Letter
- Company registration (TDP)
4. Hiring expat staff case
- Compulsory employment report (WLK)
- Companies Foreign Employees Plan (RPTKA)
- Statement of obligation to pay along with proof of payment of DPKK
- Health insurance statement (BPJS certificate)
- Actual work permit (IMTA)
- Approval of the Director General of Immigration to work (Telex approval)
- Limited stay visa to work (VITAS)
- Stay permit (KITAS)
- Multiple exit along with re-entry permit for Indonesia (MERP)
- Registration of your address with the local police (STM)
- Temporary ID card (SKTT)
- Certificate of Registration of Temporary Residents (SKPPS)
- Registration of the existence of the employee (LK)
THE NEGATIVE LIST for foreign direct investment
Where, in all This specific, does the brand new Negative list no. 44 of 2016, published on 24 May 2016, for Foreign Direct Investment fit in?
This specific negative list is usually a regulation of which determines which business fields are open for investment along with under which restrictions. Nothing more along with nothing less.
*An English translation of This specific list is usually available online by SSEK, an Indonesian Legal consultants firm: www.ssek.com/download/document/Presidential_Regulation_44_of_2016_(2016_Negative_List)_English_151.pdf)
The forbidden (closed) fields are areas where a common expat cannot be involved in, such as casinos along with gambling, historical along with archaeological remains, telecommunications stuff, along with the manufacture of chemicals along with liquor (alcohol). Though alcohol we are still allowed to drink!
The following business fields are allowed with restrictions inside sense of which you have a local partner owning some shares. The decisive factor is usually the KBLI number of the business field.
- Agriculture
- Forestry
- Maritime along with Fisheries
- Energy along with Mineral Resources
- Industry
- Defence along with Security
- Public Works
- Trade
- Tourism along with Creative Economy
- Transportation
- Communications along with Informatics
- Finance
- Banking
- Manpower
- Education
- Health
If the specific business field (look for KBLI number) in which you want to be active is usually not listed, the business activity is usually free.
Using the negative list is usually simple along with one doesn’t need to see This specific list as a major hurdle to invest in Indonesia. Just choose the business field in which you operate inside Indonesian Standard Classification of Business Fields (KBLI).
* (www2.bkpm.go.id/images/uploads/prosedur_investasi/file_upload/KBLI-2015.pdf along with English type file:///C:/Users/DELL/Desktop/ISIC%20business%20fields%20list.pdf)
Your agent can only help you satisfactorily if you have done your homework along with determined which business field is usually applicable.
Some activities such as direct selling are ousted, so companies can legally operate as 100 percent foreign owned companies. additional sectors, such as warehouse distribution, travel agencies, along with telecom services have had their maximum allowance level of foreign investment increased to 67 percent; important, because at This specific point the foreigner gains full control.
Our motto just for This specific article: If you decide to establish your own company along with need the assistance of an agent, This specific is usually wise along with helpful if you have any idea what the agent is usually doing along with where inside process you actually are. Show This specific to your agent or representative along with let him point out where you are inside respective phase.
Finally… This specific is usually Indonesia. There is usually no such thing as:
Average costs about Rp.45,000,000 including one expat staff, depending on the agency.
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The PMA Company along with the Negative List in Indonesia
The PMA Company along with the Negative List in Indonesia