Limited Liability Company with Foreign Investment (PT PMA) is indeed a common choice for foreign investors looking to start a business in Indonesia. Here are several reasons why PT PMA is often chosen :

1. Legal Protection: PT PMA provides legal protection for shareholders. The liability of shareholders for company debts is limited to the amount of capital they have invested in the company. So, if the company faces financial problems, shareholders are only responsible for the amount of capital they have invested.

2. Ability to Conduct Business Directly: PT PMA allows foreign investors to conduct business activities directly in Indonesia. This includes receiving payments, making contracts, and running business operations.

3. Tax Obligations: PT PMA also has tax obligations according to the taxation regulations in Indonesia. This ensures that the company operates legally and contributes to the country’s economy.

Basic requirements for registering a Foreign Investment Company (PMA) in Indonesia include:

1. Registered and Minimum Paid-up Capital: The registered and minimum paid-up capital is IDR 10 billion (approximately USD 634.655 ).
2. Minimum of Two Shareholders: At least two shareholders (either individuals or legal entities) are required.
3. Minimum of One Director and One Commissioner: There must be at least one director and one commissioner.
4. Office Address: The company must have a registered office address (which can be a virtual office address).
5. Business Scope in Indonesia is divided into 4 risk levels: Low Risk, Low-Medium Risk, Medium-High Risk, and High Risk. Business activities with medium and high risks refer to activities that can cause significant environmental damage or are involved in industries that require highly professional skills and strict supervision to avoid serious consequences or accidents. Such companies are the primary targets of government management and are also the threshold. Higher-risk business activities require special licenses or qualifications. Companies with medium and high-risk business scopes use Business Registration Certificate (NIB) and Standard Certificate (SS) documents that have not been activated as business permits.
6. Some examples of business activities with medium and high risks include:
   • Construction Services (ports, mining, oil and gas, etc.)
   • Manufacturing Activities
   • Computer Programming Activities
   • Data Processing and Hosting Activities

To facilitate your establishment of a PT PMA in Indonesia, MyLegal offers professional and reliable services. Contact us now to receive assistance in ensuring a smooth company formation process that complies with all applicable legal requirements