How to Start a PT-PMA in Bali, Indonesia

Starting a PT PMA (Perseroan Terbatas Penanaman Modal Asing), or a foreign-owned limited liability company, in Bali is an exciting opportunity for investors looking to establish a presence in one of Indonesia's most vibrant regions. This guide provides a detailed, step-by-step outline of the process and answers frequently asked questions to help you navigate the complexities of starting a business in Indonesia.

Understanding PT PMA

A PT PMA allows foreign investors to legally operate businesses in Indonesia, providing ownership rights and operational legitimacy. The structure offers flexibility for various industries, from tourism and real estate to technology and manufacturing. While the setup process can be intricate due to regulatory requirements, understanding each step can ensure a smooth transition.

Step 1: Define Your Business Plan

Before initiating the registration process, clearly outline your business activities. Your business must align with the Indonesian Standard Business Classification (KBLI) codes, as these determine the legal framework for your enterprise. Identifying the right codes ensures compliance with government regulations and facilitates the licensing process.

Step 2: Prepare Required Documents

To establish a PT PMA, you need to gather specific documents. These fall into three main categories:

Company Information

• Proposed company name (must consist of at least three unique words).
• Business address in Bali.
• Detailed description of business activities, aligned with KBLI codes.

Shareholder Details

For Individual Shareholders:

• Valid passport copies (with at least 18 months of validity remaining).
• Contact information, including email, phone number, and residential address.

For Corporate Shareholders:

• Articles of association and amendments (translated into English or Bahasa Indonesia).
• Business registration certificate.

Directors and Commissioners

Foreign Nationals:

• Passport copies.
• Passport-sized photographs.
• Visa and residency documents, if applicable.

Indonesian Nationals:

• ID card (KTP), Taxpayer Identification Number (NPWP), and family card (KK).

Step 3: Meet Capital Requirements

Indonesia mandates a minimum investment of IDR 10 billion (~USD 700,000) per shareholder, with at least 25% as paid-up capital. While these funds do not need to be fully deposited immediately, they must be documented in your business plan. A corporate bank account must be opened in Indonesia to handle these transactions and future business operations.

Step 4: Reserve the Company Name

Choosing a unique and compliant company name is a critical step. The name must:

• Be written in Latin characters.
• Include at least three words.
• Reflect the nature of your business.
• Avoid prohibited terms, such as those associated with government institutions or existing trademarks.