We assist our clients, either individual, local or foreign company to set-up a new company (e.g., PT PMA, PT PMDN, Representative Office, and Permanent Establishment) and to prepare all legal documentation. It is our duty and responsibility to mitigate risks and secure the rights of our clients with regard to their investment in Indonesia by carrying out research and legal due diligence on our clients’ strategic future business partners. We advise our clients in structuring and forming the new company, obtaining permits and licenses, and providing legal or tax advice on the operation of the company.
A PT PMA is a foreign-owned company in Indonesia, allowing international investors to own shares and operate within Indonesia under specific regulations.
PT PMDN is a company fully owned by Indonesian nationals or entities and operates under local investment laws with fewer restrictions than PT PMA.
RO is a non-revenue-generating office set up by foreign companies for liaison, market research, or promotional activities in Indonesia.
A PE is a foreign company’s local business presence in Indonesia, taxed similarly to local companies and used for operational activities.
Both PT PMA and PT PMDN require at least two shareholders.
PT PMA requires a minimum of IDR 10 billion in capital, while PT PMDN has no specific minimum but must follow general corporate laws.
Yes, foreigners can be shareholders and directors in PT PMA, though restrictions apply in certain sectors.
PT PMA and PT PMDN are subject to corporate taxes and VAT; PEs are taxed on local income, while ROs are not taxed as they don’t generate revenue.
No, certain sectors are restricted or closed to foreign investment under the Negative Investment List. It’s essential to verify sector-specific regulations.
Not necessarily, but in some sectors, foreign investors must partner with a local entity or individual, depending on the industry’s regulations.
Key documents include Articles of Association, shareholder and director IDs, a registered office address, and compliance with sectoral licenses.
Yes, but the process requires establishing a new legal entity (PT PMA) and cannot simply be converted; it involves fulfilling investment requirements.
Yes, an RO can hire local staff but is limited in terms of its operational scope since it cannot conduct direct business activities.
Yes, many industries require specific permits or licenses in addition to general company registration, such as those for finance, construction, or mining.
Both must submit annual financial reports, tax filings, and comply with local labor and employment reporting to relevant authorities.
PE is a local taxable entity for foreign companies engaged in certain business activities, while a branch office is not common in Indonesia except for specific industries like banking.
