Foreign-Owned Company (PT PMA) Setup in Bali, Indonesia
Ready to tap into the dynamic Indonesian market with foreign capital? A PT PMA (Penanaman Modal Asing / Foreign Company) is the required legal entity for any business with foreign shareholders in Indonesia.
At Bali Visa Advisor, we simplify the process of establishing a PT PMA—guiding you from initial consultation to full company registration, tax compliance, and ongoing reporting. With more than 15 years of experience assisting international clients, our team ensures every step is smooth, transparent, and fully compliant with Indonesian law.
What is a PT PMA?
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company where foreign investors can own shares, either fully or partially, depending on the business sector.
- Full or partial foreign ownership depending on the industry regulations
- Recognized legal entity under Indonesian law
- Flexibility to sponsor work permits (KITAS/ITAS) for foreign directors and employees
- Ability to own company assets and open corporate bank accounts
The minimum capital requirement is over IDR 10 billion (excluding land and building value). This regulation ensures that PT PMA companies represent serious investments, while also protecting small and medium-sized local enterprises.
Foreign Owned Limited Liability Company (PT PMA) can be fully owned by foreign shareholder or can only be partially owned by foreign shareholders depending on the business activities. For the business activities details, you can check on Indonesia Standard Industrial Classification (KBLI).
Requirements to set up Foreign Owned Limited Liability Company (PT PMA)
To register a PT PMA, you will need the following documents:
- Proposed company name (minimum 3 words, polite and unique – in Bahasa Indonesia or English)
- Passport copies of all shareholders
- Local phone number and email address (Gmail) for each shareholders
- Capital distribution and shareholder structure (note: for ITAS applications, personal shares must exceed IDR 10 billion)
- Business classification according to KBLI (Indonesian Standard Business Classification)
- Legal office address (rented office, virtual office, or property lease agreement)
Step-by-Step PT PMA Registration Process
-
Company Name Approval.
Submission of at least three name options to ensure compliance with government regulations. -
Deed of Establishment (Notarial Deed).
Drafting Articles of Association and defining company structure with a certified notary. -
Legal Entity Approval.
Obtained from the Ministry of Law and Human Rights, officially recognizing your company. -
Tax Identification Number (NPWP).
Essential for tax compliance, banking, and future licensing requirements. -
Business Identification Number (NIB).
Issued through the OSS (Online Single Submission) system, granting your company legal authority to operate.
With these steps completed, your PT PMA will be fully recognized and authorized to run business operations in Indonesia.
Keep Your Business Safe & Compliant in Indonesia
Doing business in Indonesia comes with unique rules and characteristics. If you plan to set up a company here, it is important to understand the local culture, business environment, and legal requirements. This will ensure that your company is properly registered and fully compliant with Indonesian law.
A Foreign-Owned Limited Liability Company (PT PMA) in Indonesia is required to:
-
Corporate Tax
For annual revenue under IDR 4.8 billion → 0.5% of gross turnover for the first 3 years.
After 3 years → 22% of net profit -
Investment Reporting (LKPM)
Every 3 months, PT PMA companies must submit an Investment Activity Report (LKPM) to the Indonesian Investment Coordinating Board (BKPM). This report outlines business activities, progress, and challenges. -
Annual and Monthly Tax Filings
Regular reporting is mandatory to remain compliant and avoid penalties.
Benefits of Establishing a PT PMA in Bali
- 100% or partial foreign ownership (depending on business sector).
- Legal protection and recognized corporate structure.
- Ability to sponsor foreign employees (KITAS/ITAS).
- Access to corporate banking facilities in Indonesia.
- Opportunity to invest and grow within Indonesia’s expanding market.
FREQUENTLY ASKED QUESTIONS (FAQ)
A PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company in Indonesia that allows foreign individuals or corporations to invest and operate legally in Indonesia.
Foreign individuals, foreign companies, or a joint venture between foreign and local investors can establish a PMA, subject to the Negative Investment List (DNI) and current investment regulations.
- At least 2 shareholders (can be individuals or legal entities).
- A minimum investment plan of IDR 10 billion (~USD 650,000).
- A local office address in Indonesia.
Not all business sectors are open to foreign investment. Some are restricted or require partnership with local investors. The updated Positive Investment List regulates which sectors are fully open, restricted, or closed.
Typically, the registration and approval process takes around 2–4 weeks, depending on the completeness of documents and approval from the Investment Coordinating Board (BKPM).
Typically, the registration and approval process takes around 2–4 weeks, depending on the completeness of documents and approval from the Investment Coordinating Board (BKPM).
A PMA can hold land rights under Hak Guna Bangunan (HGB – Right to Build) and Hak Pakai (Right to Use) but cannot hold Freehold Title (Hak Milik), which is reserved for Indonesian citizens.
Yes. After paying applicable corporate income tax, foreign investors are allowed to repatriate profits, dividends, and capital legally to their home country.
Still Have Question?
Contact us today for a free consultation and a personalized quotation tailored to your business needs.
