This type of business license is considered as most populer in Bali and safest for foreign investor. Suitable for medium- and large-size businesses in Indonesia. Foreigners can act as establishers. Working for such an enterprise, a foreigner can obtain a work visa KITAS for CEO position.
PT Foreign Investment (PMA) is a limited liability company established under Indonesian law. Regarding foreign investment itself, the Investment Law defines it as an investment activity to do business in the territory of the Republic of Indonesia which is carried out by foreign investors, both those who use foreign capital fully and those who are associated with domestic investors.
All foreign-owned companies in Indonesia are PT PMAs which stands for a limited liability company with foreign direct investment. A company is a PMA as long as any of the shares are held by a foreign national or a foreign company. Therefore, it doesn’t matter if it’s 100%, 51% or even 1% – if there are foreign shareholders, you are a foreign-owned company.
However, if you aim to only represent an overseas company in Indonesia and you will not generate any income from local activities, you can set up a representative office instead.
The maximum allowed foreign ownership depends on your business classification. It can range from 100% open to closed to foreign investment. The document regulating the restricted industries is the Negative Investment List (DNI) and it is usually revised every 3 years.
We handle paperwork related to obtaining and extension all types of Indonesian visas on Bali. To clarify information about visa to Indonesia or starting a business in Bali, please feel free to contact us any convenient way.
To attract more foreign investors and multiple investments critical to the Indonesian economy, Indonesia has been relaxing the limited foreign ownership lately. Wholly-owned foreign companies became less rare, and it is, therefore, likely that you can start an international company without any partnership or local shares of your property.
In case, the business sector in which you intend to incorporate a company does not offer independent international ownership, we suggest opting for a limited liability company registration through a joint venture with a local partner.
If you have a plan to start a business in Bali, Indonesia, we can help you to setup your business, in compliance with national and local laws. Within the shortest possible time you can already start your business and work legally in Bali. We do all your paperwork in a fast and efficient way.