PT PMA Company Setup: Your Guide to Starting in Bali

November 26, 2024

Bali’s appeal goes beyond its stunning landscapes and vibrant culture; it is also a hotspot for business opportunities. Establishing up a PT PMA (Penanaman Modal Asing) can be your gateway to capitalizing on the island’s economic potential.

If you plan to set up a PT PMA in Bali, here’s what you must prepare.

Key Steps for PT PMA Company Setup in Bali

Yes, foreigners can establish a company in Indonesia through a PT PMA registration. The country allows for foreign investment ownership and provides legal protection under Indonesian law. However, certain business sectors are restricted or limited to foreign investment, as detailed in the Indonesian Negative Investment List (Daftar Negatif Investasi).

1. Company Organization

A minimum of 2 shareholders are required as Director and Commissioner, with at least 1 Director being mandatory on the board.

2. Determine Your Business Structure and Sector

Decide if PT PMA is the right structure for your business.
According to the Indonesian Negative Investment List (Daftar Negatif Investasi), ensure your business sector is open to foreign investment.

3. Requirements for PT PMA company setup

Identity Proof: Copies of passports for all foreign shareholders and directors.
Company Name: Propose three company names for approval.
Registered Office Address: A physical or virtual office address in Bali.
Business Plan: Outline your business activities, investment plan, and financial projections.

4. Incorporate Your PT PMA

Deed of Establishment Drafted by an Indonesian notary, this deed includes the company’s Articles of Association.
Approval from the Ministry of Law and Human Rights: Obtain legal entity status for your company.
Obtain a Tax Identification Number (NPWP): Register your company for taxation purposes.

5. Investment Licensing

Online Single Submission (OSS) Register through the OSS system to obtain the necessary business licenses, such as the Business Identification Number (NIB) and sector-specific licenses.

6. Capital Investment Plan

Paid-Up Capital Ensure your company meets the minimum capital requirement, which is typically IDR 10 billion for a PT PMA.
Investment Realization Report Regularly report your investment activities to the Investment Coordinating Board (BKPM).

7. Additional Permits and Licenses

Depending on your business sector, you may need additional permits, such as tourism, environmental, or import-export licenses.

Why Choose Usaha Expat for PT PMA Setup

Bali’s strategic location for a company, dynamic economy, and supportive environment make it an ideal destination for foreign investment. However, as a foreigner living in Indonesia, one simple task can be challenging due to cultural and language differences.Usaha Expat understands your challenges. That is why we designed full-pack services for setting up a company in Bali that enable us to guide you from A to Z, so you can have peace of mind and focus on your business. Our packages for a company setup in Bali start from IDR 25,000,000, including free bonus services such as:

Foreigners must secure a virtual address to establish their PT PMA, especially if they don’t have a physical office address. This service, which includes a co-working space, typically costs IDR 6.5 million annually. You’ll get it all with our service, and the fee is on us for the first year.

Usaha Expat will help you find the best bank options, connect you with reliable bank agents, and guide you through setting up a dedicated multi-currency bank account for your company.