While setting up a business in a foreign location or business expansion, location is a very crucial factor. Today, Indonesia is one of the most attractive destinations for foreign investors owing to its many advantages, like access to the ready Asian markets of Malaysia, Singapore, or India. Among other factors is the middle-class’s growing purchasing capacity, resulting in huge demand for products and services. However, If you are thinking about company registration in Indonesia, you need to select the right business structure to run your operations smoothly and profitably.
Selecting the right business entity for your business
In Indonesia, investors get two business entity options to select from, which are:
- Local Company (PT): This business structure permits only 100% local ownership, implying that the owner must be a local resident
- Foreign-owned company (PT PMA): It allows more foreign ownership subject to the type of business you are doing and the related industry
Advantages of choosing a PT PMA business structure
Foreign investors favor the PT PMA structure for their business since it allows them between 0 to 100% ownership. However, you need to know all about the industries listed under the Indonesia Negative Investment List (DNI) since such businesses have restrictions related to total ownership.
These are the benefits of a PT PMA structure you will receive as a foreign investor:
- You will enjoy rights and responsibilities equal to that of local companies.
- You can commence your business operations quickly.
- It gives you the privilege to register your product and apply for a business license.
- You can employ foreign workers for your company as per the KiTAS work visa.
- You can apply for Indonesian tenders.
- Your firm gets exclusive customs facilities.
The PT PMA business structure is very popular among foreign investors in Indonesia. 3E Accounting Indonesia, with its vast years of experience, lends its support to investors to incorporate Indonesian company and run business operations efficiently. Our expert team will provide you with the best possible service and guide you through all company incorporation procedures to set up your business in the quickest time.