Understanding PT PMA in Bali Bali’s booming economy and thriving tourism industry make it an attractive destination for foreign investors. Establishing a company in Indonesia requires compliance with specific legal frameworks, and one of the most common structures for foreign-owned businesses is the PT PMA (Perseroan Terbatas Penanaman Modal Asing), or Foreign-Owned Limited Liability Company. Setting up a PT PMA ensures full legal compliance, allowing foreign investors to operate within Indonesia without restrictions.

What is a PT PMA? A PT PMA is a legal business entity in Indonesia that allows foreign individuals or corporations to own shares and operate businesses. Unlike local PT (Perseroan Terbatas) companies, which are exclusively for Indonesian citizens, PT PMA companies enable foreign entrepreneurs to invest, trade, and conduct business legally in Bali.

Advantages of Establishing a PT PMA

• Legal Business Ownership – Foreign investors can legally own and operate a company in Indonesia.

• Ease of Business Operations – PT PMAs can conduct commercial activities, hire employees, and generate revenue.

• Long-Term Investment Opportunity – PT PMAs can hold assets, lease land, and engage in multiple business sectors.

• Eligible for Business Licenses – A PT PMA can apply for necessary permits to operate legally in Indonesia.

Step-by-Step Process to Set Up a PT PMA in Bali

1. Determine Your Business Sector

   • Business sectors in Indonesia are regulated under the Positive Investment List, which outlines sectors open to foreign investment.

   • Some sectors have foreign ownership limitations, while others allow full foreign control.

2. Choose a Business Name

   • The name must be unique and follow Indonesia’s business naming regulations.

   • It should not be similar to existing registered companies.

3. Define Business Activities

   • The company’s activities must be categorized according to the Indonesian Standard Industrial Classification (KBLI).

   • Ensure the chosen activities align with foreign investment policies.

4. Prepare the Minimum Capital Requirement

   • PT PMAs require a minimum investment of IDR 10 billion (approximately USD 700,000), including both capital and operational expenses.

   • At least IDR 2.5 billion must be paid as issued capital.

5. Appoint Directors, Commissioners, and Shareholders

   • A PT PMA must have at least one director, one commissioner, and two shareholders.

   • Shareholders can be foreign individuals or corporations, while at least one commissioner can be an Indonesian or foreign national.

6. Submit Legal Documents

   • Draft and submit the Articles of Association.

   • Provide copies of passports (for foreign shareholders) or business registration documents (for foreign corporate shareholders).

   • Obtain a tax identification number (NPWP) for the company.

7. Register the Company with the Ministry of Law and Human Rights

   • After approval, the company will receive a Deed of Establishment and Business Registration Number (NIB).

8. Obtain Business Licenses

   • Depending on the industry, businesses may need additional licenses such as a Business License (Izin Usaha) or Tourism License (TDUP).

   • Licensing is managed through Indonesia’s Online Single Submission (OSS) system.

9. Open a Corporate Bank Account

   • A PT PMA must open a business bank account in Indonesia to conduct financial transactions.

10. Comply with Tax and Reporting Obligations

• A PT PMA is required to file monthly and annual tax reports with the Indonesian Tax Office.

• Businesses must comply with corporate tax, VAT, and employee income tax regulations.

Legal Considerations for PT PMA Registration

• Foreign Ownership Limitations – Some business sectors restrict foreign ownership; consulting with legal experts is essential.

• Zoning and Business Location – Ensure your business complies with local zoning regulations before signing rental agreements.

• Annual Reporting Requirements – PT PMAs must submit annual reports to maintain legal status.

Common Challenges and How to Overcome Them

• Complex Bureaucracy – Indonesia’s legal system can be complex; hiring an experienced lawyer ensures a smooth process.

• Language Barriers – Most official documents and processes are in Indonesian; professional legal services help navigate requirements.

• Sector Restrictions – Some industries have caps on foreign ownership, requiring local partnerships.

Why Choose The Bali Lawyer? At The Bali Lawyer, we specialize in assisting foreign investors with PT PMA registration, business licensing, and compliance with Indonesian laws. Our legal experts ensure a smooth company formation process, providing guidance on structuring your business, securing permits, and fulfilling tax obligations. With in-depth knowledge of Indonesian corporate law, we help you establish and run your business in Bali efficiently and legally.

Contact Us Today If you are planning to establish a PT PMA in Bali, contact The Bali Lawyer for professional legal assistance. We simplify the company registration process, ensuring your business operates legally and successfully in Indonesia.