A PT PMA is an Indonesian limited company owned partly or fully by foreigners. For a building project in Bali it does three things a foreign individual cannot: it can hold HGB land rights, it can apply for the PBG and SLF in its own name, and it can run a licensed business such as rental villas, a restaurant or a guesthouse. Because the deed of establishment must be a notarial deed, a notary office is part of every setup, and ours makes it in-house.
Cost: a fixed quote after the KBLI code and the shareholder structure are confirmed. Government charges are shown separately.
Check the activity first
Every business activity has a KBLI code, and not every code is open to foreign investment in every place. Bali has closed many classifications to foreign companies. Before you reserve a name, confirm that the activity you plan, such as villa accommodation or food and beverage, is open to a PT PMA at your location. Building first and checking later is the expensive order.
Setup steps
- KBLI check for your activity and location.
- Company name reserved with the Ministry of Law.
- Deed of establishment signed before a notary.
- NIB (business identification number) through OSS.
- Tax registration (NPWP), and VAT where it applies.
- Sector licences, for example tourism or construction.
A straightforward PT PMA is usually registered in 2 to 4 weeks. The deed and NIB tend to arrive in the first 7 to 10 business days, and sector licences can add 2 to 6 weeks. You do not need to be in Indonesia to incorporate.
Structure
At least two shareholders, both of whom may be foreign, at least one director and one commissioner. Changes to directors, commissioners, shares, capital or the articles are filed with AHU. Every PT now files an annual report through AHU after its annual shareholders' meeting, and AHU may block corporate changes until it is filed.
From company to building
Once the company exists, the building side follows:
- Land. The PT PMA acquires HGB, or leases land, after land due diligence.
- PBG. Business applicants file through OSS, which is linked to SIMBG, with the company's NIB and deed in the file. See PBG.
- SLF. Required before the building is used for the business. See SLF.
- Operating licences. A hospitality licence needs the SLF. See villa business licensing.
What to avoid
Do not use a nominee shareholder or an Indonesian friend to hold land for you. Nominee shareholdings are void under the investment law, nominee land arrangements are void under the agrarian law, and courts have repeatedly voided these deeds. A PT PMA exists so you do not need one.
