KH friends must have seen Tolak Angin advertisements with its famous slogan “Smart People Drink Tolak Angin” and Indomie advertisements with its slogan “Indomie Seleraku” on television, the internet, or other media, right?
Did you know that these advertisements are usually made by creative people engaged in advertising services?
These people usually join or have their own company which is better known as an Advertising Agency.
Advertising Agency at a Glance
Advertising Agency is a business entity that provides certain services or offers creative services to its clients in the field of advertising.
Because in the form of a business entity, of course there are legalities that must be fulfilled by business actors who want to establish an Advertising Agency.
One of them is registering a business entity in order to obtain legal legality in running a business.
Usually Advertising Agency is established in the form of CV, PT PMDN, or PT PMA.
Now to help KH Pals who are currently planning to establish an Advertising Agency, the current Legal Contract will discuss one way to establish an Advertising Agency with PMA status.
Foreign Investment Limited Company or better known as PT PMA is a legal entity consisting of a capital partnership, established based on an agreement, conducting business activities with an authorized capital of which all or part of the shares are owned by a foreign country, individual foreign nationals, foreign business entities, foreign legal entities, and / or Indonesian legal entities whose capital is partially or wholly owned by foreign parties.
Presidential Regulation No. 10 of 2021 on Investment Business Fields states that PMA can only conduct business activities in large businesses with an investment value of more than IDR 10 billion outside the value of land and buildings.
However, if FDI is carried out in special economic zones, the investment can be made with an investment value equal to or less than IDR 10 billion outside the value of land and buildings.
DNI & KBLI
Before conducting FDI, it is important for foreign investors to check the Negative Investment List (DNI).
This is because there are business fields that are closed and business fields that are open to FDI.
Business fields or types of businesses that are closed and open with requirements are determined through a Presidential Regulation which is compiled in a list based on classification standards regarding business fields or types of businesses that apply in Indonesia or also known as the Indonesian Standard Business Field Classification (KBLI).
If you look at KBLI, Advertising Agency itself can be grouped into the field of Advertising with KBLI Code 73100.
Quoting from the Online Single Submission (OSS) website, this group includes the business of various advertising services (either with their own abilities or subcontracted), including advisory, creative assistance services, production of advertising materials, media planning and purchasing.
Activities include creation and placement of advertisements in newspapers, magazines and tabloids, radio, television, internet and other media; creation and placement of field advertisements, such as notice boards, panels, types of posters and pictures, flyers, pamphlets, circulars, brochures and frames, window advertisements, showroom designs, car and bus advertisements, etc.; media portrayal, i.e. the sale of space and time for various media advertising applications; aerial advertising, etc..
In this group there are no specific requirements or restrictions so that a PT PMA can be established for Advertising Agency.
Establishment of a PT PMA for Advertising Agency
The establishment of PT PMA for Advertising Agency can be done online through the OSS page.
Similar to the establishment of PT in general, PT PMA must be preceded by making a deed of establishment through a notary.
The deed must then be submitted to the Ministry of Law and Human Rights to obtain authorization to become a legal entity / PT.
If you have obtained the status of a legal entity, business actors must make a Company NPWP to fulfill their obligations as taxpayers.
Because of their PMA status, business actors are also required to pay attention to the capital or investment requirements mentioned earlier.
If you look at the KBLI provisions for the advertising business field, the Advertising Agency does not require a special license so that business actors do not need to take care of other licenses besides the Trading Business License (SIUP), Location Permit, and Principle Permit submitted to BKPM.
In addition to OSS, Kontrak Hukum can also help KH Pals to establish a legal entity in the form of
KH Friend’s data and information are also guaranteed to be safe and protected.
Also read:
This is because PT PMA is not only established as a forum for investment in Indonesia but also to support the Indonesian economy, one of which is by expanding employment and increasing human resources.
PT PMA must also pay attention to the provisions in the Job Creation Law governing employment if it wants to use foreign workers (TKA) for its company.
Article 81 number 4 states that foreign workers can be employed in Indonesia only in employment relationships for certain positions and certain times and have competence in accordance with the position to be occupied.
Foreign workers are also prohibited from occupying positions that take care of personnel.
This means that in PT PMA, the position of personnel director must be held by Indonesian citizens.
Keep in mind that foreign workers are also required to have a Limited Stay Permit Card (KITAS).
Read also: What are the Benefits of Creating a PMA in Indonesia?
KH Contact
Well Friend KH, those are the provisions and how to establish an Advertising Agency with PT PMA status in Indonesia.
If you have any questions regarding the
