Foreign-Owned Company (PT PMA) Setup in Bali, Indonesia
Are you planning to start a business in Bali or expand your investment into Indonesia? Setting up a Foreign-Owned Limited Liability Company (PT PMA) is the most reliable way for foreign investors to legally operate 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.
Foreign Owned Limited Liability Company (PT PMA) must be have investment value of more than IDR 10 billion, excluding land and building. The relatively high threshold is set to protect local small businesses from foreign competitors and to encourage foreign investment in large-scale business.
Requirements to set up Foreign Owned Limited Liability Company (PT PMA)
- Company name (three words in Bahasa Indonesia or English).
- Copy identity card (passport) for all shareholders.
- A numbers of investment minimum IDR 10.000.000.000.
- Position of each shareholders in company.
- Total share capital for each shareholders (If any Investor want to apply an Investor Limited Stay Permit (ITAS), the personal share investment must be more than IDR 10.000.000.000 each).
- Business classification or business activities details.
- Rent agreement or land certificate for the office address. (If you don't have office address yet, you can use Virtual Office address for the first year).
Step-by-Step PT PMA Registration Process
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Approval of Company Name.
It should consist of three words that are not vulgar or obscene. -
Deed of Incorporation.
It should include an Article of Association, and a notary must be present. -
Approval of Legal Entity.
After submission of Deed of Incorporation by the notary, the Ministry of Law and Human Rights will give approval. -
Registration of Tax ID (NPWP).
A valid NPWP is required for securing other company’s licenses, banking activities, and fulfilling tax obligations. -
Application of NIB.
NIB (Business License) will registration via Online Single Submision (OSS).
With these steps completed, your PT PMA will be fully recognized and authorized to run business operations in Indonesia.
Obligation for Foreign Owned Limited Liability Company (PT PMA)
Keep Your Business Safe & Complies With The Rules. Indonesia has its own characteristics. This is simples point if you have company and business in Indonesia. Understanding insights into the culture, customs, and business environment and ensures that your company is set up correctly and complies with legal requirements.
Foreign Owned Limited Liability Company (PT PMA) is obligated to do :
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Tax Report
For the first 3 years, your company tax rate is 0.5% from the total revenue and your revenue is less than IDR 4.8 Billion per year. If your revenue exceeds IDR 4.8 Billion or after 3 years, your company tax rate will be 11% of the net profit. -
Report Investment Activities (LKPM)
LKPM is a report comprising information about the results in the company’s investments and concerns raised by the investors that reported periodically to the government. The LKPM report is submitted quarterly, every 3 months, detailing all investments made during that period.
