Five Things You Should Know For Establishing PMA Company in Indonesia

PMA (Penanaman Modal Asing) company is also known as PT PMA (Perseroan Terbatas Penanaman Modal Asing). Sometimes, it is also called a foreign-owned company.

Under the Indonesian company law, foreign investors can set up and run their business in Indonesia to generate profits and revenues. They can form a legal business entity in the form of foreign-owned company.

Indonesia is counted among stable economies in the world. It also provides enough scope and opportunities to foreign investors for running their business. Apart from this, the corporate law and tax policies are friendly for foreign investors. And so, one should not hesitate to set up its new business in Indonesia.

Here are five things you should know about setting up a PMA company in Indonesia.

What Does A PMA Company Consist Of?

To establish PMA company in Indonesia, you must have at least one director, one commissioner, and two shareholders.

What is Minimum Capital Requirement?

As per Indonesian company law, one must have a minimum authorized capital of IDR 10 billion (around USD 7000,000). Apart from this, you have to pay twenty-five percent of the authorized capital (around IDR 2.5 billion) in advance.

What are the Options?

Mainly, there are three options you can choose from that are fully closed business sectors, fully open business sectors, and partially open business sectors.

For more information regarding establishing a PMA company, you should consult a business incorporation company in Indonesia.