Company Establishment (PT PMA)

Incorporating a PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the legal foundation for your foreign investment company in Indonesia.

Unlike company registration in Western jurisdictions, Indonesian company establishment involves multiple critical steps that must be executed in precise sequence. The process begins with a notarized deed of establishment, which must comply with both Indonesian corporate law and your parent company's governance requirements. This deed becomes your company's constitution—defining shareholder rights, management authority, and operational parameters for years to come.

The Ministry of Law and Human Rights must approve your company structure before you can proceed with any operational activities. This approval process examines your articles of association for compliance with Indonesia's Company Law (Law No. 40/2007), foreign ownership regulations, and sector-specific requirements. Any inconsistencies between your proposed structure and Indonesian legal requirements will result in rejection and costly amendments.

Critical considerations: Your initial capital structure affects not only your BKPM commitments but also your tax obligations, banking relationships, and future fundraising flexibility. Indonesia requires paid-up capital to be deposited and verified—you cannot simply declare authorized capital without actual funds. Additionally, director appointments must consider residency requirements, immigration status, and banking signature authority.

We've seen companies delay operations by 2-3 months due to poorly structured articles of association that require post-establishment amendments. Our bilingual legal team ensures your company structure meets both Indonesian compliance standards and international corporate governance best practices from day one.