Limited Liability Company (Perseoraan Terbatas or PT)

Limited Liability Companies are classified into micro, small, medium and large scale companies, which is largely based on investment capital.

As a foreigner investing and working in Indonesia, a PT. Local or a PT. PMA structure is the appropriate company to set up. Only these two types of Limited Liability Companies can trade and sponsor working permits and working KITAS.

Can a PT. Local and PMA sponsor a working permit in Indonesia (KITAS)?
Article 32 of the Company Law states that the minimum investment of a PT should be IDR 50 million , however in order to sponsor a working permit for an expatriate, a general rule of thumb for PT. Local capital investment should be above IDR 1.5 billion per expatriate. A PT. PMA can safely sponsor up to 5 work permits and working KITAS, since the capital investment required is 10 billion Rupiah.

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What are the requirements for setting up a Limited Liability Company in Bali?

  • To set up a PT. Local or PMA. you will need a minimum of 2 shareholders.
  • Shareholders can be foreign nationals or foreign entities in the case of a PMA (this will depend on the scope of business).
  • Determine which business classification or KBLI code is relevant to the business type.
  • Find a suitable office with a building permit.

What is the setup timeframe for Limited Liability Companies in Bali?
There are 2 stages of incorporation, the first stage involves the legal deeds and obtaining trading licenses, this can be completed in 8 weeks once you have a suitable office (with a building permit that allows for the type of business you would like to run). The second stage involves obtaining the relevant local licenses from the regency your company will be domiciled in, and it can also sponsor working permits for expatriates.

What are the Capital Investment requirements for Limited Liability Companies in Bali?

The recommended Capital Investment of a PT. Local should be IDR 1,5 billion to support the hiring of one expatriate. Each additional expatriate hire, would require an additional Capital Investment of IDR 1.5 billion.

The minimum Capital Investment of a PT. PMA is IDR 10 billion. Each additional scope of business would require an additional Capital Investment.

What kinds of companies allow for Foreign Investment?
This depends on if your particular business classification. There are thousands of business classifications in Indonesia - get in touch with us today for a specific look at your business requirements / options.

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