If you are planning to start your own business in Bali, you probably already know that you will need to register a company with a PT PMA (Penanaman Modal Asing) license.
This is a complex procedure that takes a considerable amount of time and money, depending on the nature of your business, and also includes a number of mandatory requirements.
The following data is needed to start the process:
1. Company name.
According to Indonesian law, it must be unique and consist of three English or Indonesian words. The words "company" or "corporation" are not counted in the name. Words must contain 3 or more letters, without punctuation. The application for approval of the company name can be submitted through an online system to which the notary has access.
If the name does not comply with Indonesian law or is similar to the name of another company, the application may be rejected.
2. Who will be a director, who will be a commissioner.
To register a PT PMA, a minimum of two shareholders are required: shareholders can be individuals or legal entities. They can fulfill the roles of director and commissioner, but can also appoint other individuals to these positions, including Indonesian nationals.
PT PMA can be wholly established by foreigners or partially established by an Indonesian citizen. The director of the company must necessarily reside in Indonesia. If the director is a foreigner, he/she needs to obtain a tax number (NPWP) and a limited residence permit (KITAS).
3. In what shares the founders participate.
In order for an entrepreneur to receive investor KITAS, his share in the authorized capital must be at least 10 billion Indonesian Rupiah per 1 person. Foreign investors are required to transfer the authorized capital to a bank account in Indonesia. The required amount of authorized capital may vary depending on the industry.
4. Address, telephone number, e-mail.
The company must be registered in non-residential premises. You can use a virtual office, but only if it allows the type of activity of the company. If necessary, our agency helps to find an office and conclude a lease agreement.
5. Legal address of the company.
The company must be registered at the address of the non-residential premises. If you are using your own premises, you will be required to:
- Google.maps address of the building;
- A photo of the building;
- Lease agreement;
- Land Certificate;
- IMB (building permit);
Also, if the type of business activity of the company allows, it is possible to register it at the address of the virtual office. We can provide a virtual office for company registration.
6. Description of the company's type of activity (KBLI - Klasifikasi Baku Lapangan Usaha Indonesia).
Up to 5 types of activities are possible.
We recommend limiting yourself to one type of activity, as a larger number of KBLIs implies the need for a larger investment. For example, if you have 2 KBLIs, the investment obligation increases to 20 billion.
The classifier is published on the OSS website and is quite similar to the Russian OKVED. Here it is very important to choose the right code to get the maximum allowable percentage of ownership, so in this matter it is better to consult with specialists.
In the future, you have the right to change the list of activities, but, for an additional fee.
7. Passports of the founders (scans).
When all data is submitted, the following procedures should be followed:
1. Creation of a legal entity.
First of all, it is necessary to write all the information in the memorandum of association, specifying the types of activities, certified by a local notary and approved by the Ministry of Law and Human Rights.
2. Tax registration.
The next step is to obtain an NPWP tax number and a certificate of registration from the local tax office.
3. Obtaining an NIB business registration number.
The third step is to register the company in the OSS (One Single Submission) system. After filling the form, you will receive a NIB (Nomor Induk Berusaha) number.
4. Obtaining commercial licenses.
You need to obtain a license for each type of business. This process is usually quick and easy. However, higher risk activities may require additional time and money, as well as compliance with a number of office conditions.
PT PMA company registration usually takes between 2 weeks and 2 months.
After opening a company, you can:
- Legally run your business and make a profit in Bali;
- Hire employees;
- Open bank accounts;
- Issue Investor KITAS, followed by KITAS family visas for close family members;
- Take out local health insurance.
Starting a business in Bali is quite easy, it can even be done remotely online from outside Indonesia. The main thing is to comply with all the requirements.
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