PT PMA company formation for foreign investors in Indonesia starts with the right business activity, a review of foreign ownership conditions and preparation of registration, licensing and address requirements. Forever Legality helps investors understand the steps and documents before the process begins.
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What is a PT PMA?
A PT PMA is an Indonesian company with foreign investment. Some activities may allow full foreign ownership; others have restrictions or special conditions. Ownership and licensing cannot be determined from nationality alone. Review the KBLI business activity code, location and actual operation in the official OSS system before agreeing to a final proposal.
Company formation and registration steps
- Review the activity and ownership: identify the appropriate KBLI code and check foreign investment eligibility and sector obligations.
- Prepare the company: organise shareholder and management details and documents for incorporation and registration.
- Business licensing: submit the relevant information through OSS for an NIB and any additional licences or certificates required for the activity’s risk level.
- After incorporation: review banking, tax and address requirements and investor residence options where immigration conditions are met.
What varies by project?
- Foreign ownership: review each activity rather than assuming 100% ownership is available for every company.
- Company address: virtual office suitability depends on the activity, location and licensing requirements; it is not appropriate in every case.
- NIB and licences: an NIB does not mean that every sector permit is complete.
- Investor residence: immigration’s visa list includes investor categories in the E28 family. Each has its own conditions and duration; incorporation alone does not guarantee KITAS.
- Time and cost: documents, activity and government reviews affect the process. Government charges and service fees are identified separately.
Information needed to begin
- The business activity and city where the project will operate.
- The number of shareholders and proposed ownership percentages.
- Shareholder and director details and the documents requested after the procedure is identified.
- The proposed investment scope and operating plan.
Start by discussing the business and available options. Agree on a secure channel and service scope before sending passport copies or sensitive personal information.
Capital is different from company formation fees
Distinguish company capital, the investment plan, government charges and service fees. A capital requirement is not the price of an incorporation service. Company formation requirements also do not automatically satisfy investor residence requirements. Applicable thresholds and conditions must be reviewed against the activity and current regulations.
Request a proposal identifying the work included: activity review, document preparation, notary coordination, registration and licensing. Clarify whether tax matters, bank account assistance or residence applications are separate services. Consult BKPM’s investment procedure guidance and the official BKPM regulation database before finalising the financial plan.
From incorporation to operation
Before starting operations, check that the location, sector and risk-based licences required for the business are complete. Keep company documents and OSS information current and allocate responsibility for applicable tax obligations and investment reports. Obligations vary by project.
Company formation, residence and visits
For residence linked to your investment role, review our KITAS residence services. For a preliminary visit or meetings before incorporation, review Indonesia visa options and select a category compatible with the intended activities.
Frequently asked questions
Can a PT PMA be 100% foreign-owned?
This may be possible for certain activities. Check the permitted ownership against the KBLI code and applicable rules before proceeding.
Can a virtual office be used for every licence?
No general answer applies to every project. Acceptance depends on the activity, location and the competent authority’s requirements.
Does incorporation automatically provide KITAS?
No. A residence application is a separate immigration procedure and depends on the visa category’s requirements and the authorities’ decision.
How long does the process take?
The activity, complete documents and required licensing determine the timing. We provide an estimate after reviewing the project rather than promising one period for every client.
Before starting and when receiving company documents
Confirm the actual activity, project location, partners, capital and funding source. Review the KBLI code, foreign ownership conditions and sector licences before signing documents or renting premises. Service scope, fees and documents follow that review.
Check shareholder and director names, address and activities across the deed, approval and NIB. Ask for the applicable risk-based licensing checklist, tax obligations and periodic reports such as LKPM where relevant. Review KITAS and work requirements separately.
Further reading in Arabic
See our guide to ordering PT PMA and investor residence procedures and company formation guide.
Contact Forever Legality about your project. Tell us the activity, city and proposed ownership so we can review the next steps. Consult OSS and the immigration portal for final official requirements.