How much is the Fee for Setting PT PMA in Indonesia? Is It That Costly?

It is such a brilliant way to expand your business in an Asian country full of a lucrative prospect named Indonesia. Although the business challenges are discernible, the golden chance for the wider advancement is before your very eyes. As your legal entity is considered foreign, keep in mind that it belongs to foreign-owned limited liability company better known as PT PMA (Perseroan Terbatas Penanaman Modal Asing).

In compliance with the Indonesian law (specifically law no. 25/2007) about investment, PT PMA typically refers to a foreign investment within the Indonesian involving the activity of buying shares as well as investing organized by none other than the foreign investor with a clear objective to run a business. When it comes to mapping out your proposition, some of you must discompose the fee for setting PT PMA in Indonesia whether it is a real bargain or costs a fortune.

The Cost to Establish the PT PMA in Indonesia Overall

Although the foreigners who wish for the establishment of PT PMA are encouraged to rely on the body called BKPM (Indonesia’s Investment Coordinating Board), they might be affected with the technical problems such as custom and language. To settle this general matter, the foreign business people are prone to corporate with the local company particularly when it comes to providing the documents, registration, and going with the procedures prepared by the BKPM and other related institutions.

The fee for setting PT PMA in Indonesia varies, depending on the sector you are going to take. However, the average of the package that the local company offers requires you to set you back around 3,000 USD. The whole process is about ten weeks.

What is the Minimum Investment and (Paid up) Capital for Establishing a PT PMA in Indonesia?

It is essential that business entity is planning to put up a PT PMA get the drift of the minimum capital requirements pointedly for the foreign investing. According to a credible source, the least amount to go for the minimum investment recently published signifies that the cost is priced at 10 billion rupiahs (around 710,000 USD). Why the local administration sets the high rate is nothing else but to let the Indonesian business entities mostly smaller flourish. Moreover, the same is true with attracting the larger sized investors and companies from around the globe.

What about the paid-up capital? It turns out that the stock is specified at 25 percent of the minimum capital requirement – if it is calculated, the amount is around 2.5 billion rupiahs or 177,152 USD. Those who belong to the foreign business people are not required to transfer the number of money concerning the capital payment to the local bank account. An important thing to do is to provide and sign a letter of the capital statement. This document defines that the paid-up comes with or without the transfer method.

All in all, the fee for setting PT PMA in Indonesia is relatively reasonable. If you need better assistance, never hesitate to reach out the expert, www.company-registration.co.id.