Are you interested in opening a company in Indonesia? Not so fast. All foreign investors need to follow procedures to invest in Indonesia. The country is famous for its complicated bureaucracy, but with the rising spirit of efficiency in the current administration, the process has been shortened.

Foreign investors have options between PT PMA (an independent company) and KPPA (a representative company of an existing business). Starting a PMA is the more ambitious option because it demands good business preparations. Investors must also consider the time they need to start the company, from start to finish.

Standard Duration for Starting a PMA

All foreign investors must arrange permits and other important documents with Indonesia Investment Coordinating Board or BPKM. They must also deal with a public notary to deal with the deals. Here are typical periods investors need to go through all the steps:

· Applying for important documents from BPKM

A foreign investor needs to get Principle and Business Licenses from BKPM as the first step. Without hassles, this process is finished in around seven days (not included workdays or national holidays).

· Deed legalizing

A public notary must legalize the new company’s Deed of Establishment. There must be Article of Associations in the deed. The process is short, usually, take around one or two days.

· Legalizing by the ministry

The next level for the legalizing process is to the Ministry of Law and Human Rights. In this process, an investor will get a strong legal base to operate in Indonesia. Without hassles, the process may take between seven and ten days.

· Getting Domicile Letter

After finding out where to establish the company, an investor (or owner) must get Domicile Letter. The authorities release this document in the local district. It assures that you (or your company) stay and operate legally. The process usually takes around three days.

· Tax-related preparations

All companies that operate in Indonesia must be ready to pay taxes, based on the government’s regulations. The investor must get PKP (taxable entrepreneur confirmation) and Tax Identification Number (NPWP) at the Department of Tax office. This process is usually done between three and five days.

·  Registration certificate

Investors need to have a company registration certificate (PKP). By registering the company’s name, the investor/owner will not deal with lawsuits and others when it presents an integrated marketing technique (especially related to business license). The process usually takes around 14 to 18 days.

· Manpower and welfare reports

Finally, a new company must understand the human resource quality in the office. The company must report about the manpower details and planned welfare reports, to the Ministry of Manpower. This process usually takes about seven days.

Ownership Status in Indonesia

Foreign investors must also find at least a President Director and Commissioner for the newly-established company. The director must stay in Indonesia to control the activities. If the director is a foreigner, he or she must have a work permit and registered tax number. At least one of the shareholders must be a foreign entity.

Feel stressed out about all the bureaucracy? Contact Smart Legal Consulting in Indonesia. This company offers services for foreigners who want to invest in Indonesia. At Smart Legal Id foreign investors can get assistance to deal with the paperwork. You can focus on the other business aspects while waiting for the documents. Inquire now and have an easier strategy to start a new business.

If you have any questions about the establishment of a PT PMA, you can contact Smart Legal  slc@smartlegal.idor +6221–8067 4920

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