How to practically make a deed of establishment of a PT PMA without complicated!

Entering the era of globalization, Indonesia has become a prima donna for foreign investors.
Promising business opportunities, abundant natural resources, and political stability are the main attractions.
One of the ideal platforms to realize business in Indonesia with foreign capital is through the establishment of PT PMA (Perseroan Terbatas Penanaman Modal Asing).
But, in the midst of this great opportunity, the process of making a PT PMA Deed of Establishment is often complicated and confusing.
For investors, this can be a stumbling block that prevents them from moving forward.
But rest assured, this discussion is here as a solution!
We will thoroughly explore the process of establishing a PT PMA with practical and easy-to-understand steps.
Throw away your doubts and follow this discussion to the end!

Initial Preparation

Meets Basic Requirements

Before proceeding further, make sure you fulfill the basic requirements of establishing a PT PMA first, namely:

• Have a minimum capital of IDR10 billion (excluding the value of land and buildings).
• Select business fields that are open to FDI.
• Determine the location of the business in Indonesia.
• Appoint at least 2 directors.
• Obtaining a Business Identification Number (NIB) issued by the Investment Coordinating Board (BKPM).

Prepare Supporting Documents

After understanding the basic requirements for establishing a PT PMA, the next step is to collect the necessary documents.
Here are some of the documents that you must prepare:

• Copy of KTP and NPWP of the founder and director.
  Proof of identity that is valid and registered in Indonesia.
• For founders and directors who are foreign nationals, a valid passport and Temporary Residence Permit Card (KITAS) are required.
• Certificate of company domicile as proof of the official address of the PT PMA’s domicile.
• Business Identification Number (NIB) which is the official identity of PT PMA as a registered business entity in Indonesia.
• Draft Articles of Association (AD) and Bylaws (ART) containing the basic rules and organizational structure of PT PMA.

Deed of Establishment of PT PMA

Entering an important stage in establishing a PT PMA, namely the making of the Deed of Establishment.
You need to know that the Deed of Establishment will be the legal basis that defines the identity, structure, and purpose of the company.
There are step-by-step steps that you should know in the process of making the Deed of Establishment of PT PMA in Indonesia.

1. Finding the Right Professional Specialist

A professional specialist here acts as a facilitator and legal advisor who will help you understand the complexities of the regulations and ensure compliance with the applicable regulations.
Therefore, choose a service company that is experienced in handling the establishment of PT PMA.
Ensure that the PT PMA establishment service has a good track record and is officially registered with the Ministry of Law and Human Rights (Kemenkumham).
For that, do not hesitate to seek information and recommendations from various trusted sources, such as business colleagues, business associations, or the internet.

2. Consultation

Consultation is a crucial moment in setting up a PT PMA.
Discuss with a professional specialist the details of setting up your PT PMA, including: Company name

• Choose a name that is unique, memorable, and reflects your business identity.
• Make sure the name has not been used by another company and is in accordance with applicable regulations.
• The service can help you check the name and provide advice on choosing the right name.

Management structure

• Determine the composition of the PT PMA board, including directors, commissioners, and other officers.
• Describe the roles and responsibilities of each board member.
• Create a management structure that complies with legal requirements and your business needs.

Capital structure

• Determine the amount of authorized capital and paid-up capital of PT PMA.
• Consider the shareholding structure and the inherent rights of shareholders.
• Your partner will help you formulate an optimal capital arrangement that fits your business plan.

1. Scope of business activities

• Describe in detail the field of business you will be running.
• Make sure the business field is open to foreign investment and in accordance with applicable regulations.
• You can enlist the help of a service provider to identify opportunities and limitations in the scope of business activities, as well as ensure compliance with relevant regulations.

Well, there are also tips for doing this consultation, namely:

• Prepare the necessary documents, such as KTP, NPWP, and a draft of the Articles of Association and Bylaws (AD/ART).
• Ask questions openly and clearly.
• Don’t hesitate to ask for explanations on things you don’t understand.
• Establish open and transparent communication, and work together for a smooth and safe PT PMA establishment.

3. Signing of the Deed of Establishment

Attend the signing process of the Deed of Establishment of PT PMA.
Before signing, carefully study the contents of the Deed of Establishment.
Make sure you understand all the important points, such as the company name, management structure, capital structure, and scope of business activities.
Most importantly, don’t hesitate to ask your legal advisor if there are things you don’t understand.

Approval of Deed of Establishment

After signing the Deed of Establishment, the next process is legalization.
This stage is for official legality as a business entity in Indonesia.
What are the processes? 1. Submission of Attestation The service party will submit the Deed of Establishment to the Ministry of Law and Human Rights for approval.
This process generally takes about 5 working days.
2. Receiving the Decree of Endorsement After the endorsement, you will receive a Decree of Endorsement of the Deed of Establishment from the Ministry of Law and Human Rights.

Business License Processing

After completing the legality with the validation of the Deed of Establishment, it is time for you to apply for a business license.
The process is as follows.

1. Apply for a business license

First, you need to take care of the various business licenses required, such as:

• Trade Business License (SIUP)
• Company Registration Certificate (TDP)
• Environmental Permit
• Labor Permit
• And others

Completing Tax Obligations

Register your PT PMA with the Directorate General of Taxes (DGT) and comply with all applicable tax obligations.

Tips for Successfully Making an Establishment Deed

• Use the services of a legal consultant or notary who is experienced in handling the establishment of PT PMA.
• Prepare all necessary documents completely and precisely.
• Understand well the contents of the Deed of Establishment before signing it.
• Comply with all applicable laws and regulations.

So, making a PT PMA Deed of Establishment does require precision and patience.
However, by following the steps above and utilizing the tips provided, you can establish a PT PMA without hassle and focus on business development later.
The process of establishing a PT PMA is complex, but with Kontrak Hukum as your partner, doubts and obstacles need not be a concern.
Don’t be confused, you can start from initial consultation, document processing, to business license processing, all of which we will assist so that the process of establishing your PT PMA is smooth.
We are ready to be a professional partner, helping you understand regulations, handle the bureaucratic process, and ensure legal compliance.
With Kontrak Hukum, you will save time and money.
Shift your focus to business development, without being burdened by administrative and legal matters.
So, no need to linger anymore, contact Kontrak Hukum now and realize your business dreams in Indonesia!