Indonesian Limited Liability Company (PT)
- This entity requires a minimum of one director, two local shareholders and one commissioner. The appointed commissioner can be a non-resident person. The commissioner is responsible to supervise the business and examine the annual report and approve the budget plan submitted by the Board of Directors. The Commissioner is responsible for monitoring and examining the annual report and approving the budgetary plan submitted by the Board of Directors.
- The paid-up share capital of an Indonesian PT is dependent on the size of the firm.
- Companies can be small, medium and large. Small companies require a share capital between US$ 3,745 to US$ 37,435. Medium companies require a share capital between US$ 37,435 to US$ 748,740. Large companies require a share capital above US$ 748,740. After the incorporation process, the share capital must be deposited on the company’s corporate bank account.
Indonesian Foreign Owned LLCs (PMA)
- These entities must obtain approval from the local administration prior to carrying out business activities. PMA Stakeholders engaged in services are required to submit an investment plan for a minimum of US$ 1.2 million, of which 25 per cent (US$ 300,000) is required to be paid as share capital.
- The requirements for setting up a PMA include one resident director and two shareholders, one commissioner who is equivalent to a COO. In the case of a PMA which is wholly foreign owned, owners must sell at least 5 per cent of their share to a citizen in Indonesia or a legal organization with 15 years of commercial start-up.
- PMAs are not limited to where they can function within Indonesia. Depending on the chosen business activity, these business entities need to obtain licenses from different government authorities to carry out their operations. Some business sectors are completely restricted to foreigners or allow only companies with partial foreign ownership
Indonesian Nominee LLC option
- Using nominees to initially set up an LLC on behalf of foreign companies enables the incorporation times of a PMA to be reduced. This option is recommended when contracts or business deals are time sensitive. Nominee LLCs are useful to overcome foreign investment restrictions.
Indonesian Representative Office
- This entity is a convenient way for foreign companies to gain a local market presence. This entity is only permitted to conduct promotional activities and market research.
- The representative office must obtain an operating license for two years, the local administration may impose additional licensing requirements, depending on the nature of the parent company.
Indonesian Public Companies
- Public companies must have at least 300 shareholders and IDR 3 billion as paid-up share capital. They are subject to additional regulatory provisions than other companies.
- A public company is not required to be listed on the national stock exchange IDX (PT Bursa Efek Indonesia)