Paid-up Capital and Investment of PT PMA – In Law No. 25 of 2007, everything is regulated regarding Investment. And based on Article 5 Paragraph (2) of this Law, there is an Investment Law (UUPM) which states that foreign investment in Indonesia must be present in the form of a Limited Liability Company (PT).

The purpose of this Foreign Investment is the activity of investing to carry out a business in the territory of the Republic of Indonesia which is carried out by foreign investors, either by using fully foreign capital or by combining with domestic investment. This is stated in Article 1 of Law No. 25 of 2007.

To set up a business entity, surely you need authorized capital. Authorized capital is the entire face value of the Company’s shares stated in the Articles of Association. The Authorized capital of the Company in principle is the total number of shares that can be issued by the company. The Articles of Association itself determine the number of shares used as authorized capital. And this capital must also be considered as one of the requirements for the establishment of PT PMA.

To be able to establish a PT PMA, your company must meet the requirements of investment and capital values ​​to obtain a business license, namely:

1. Has a net worth of more than Rp10 billion, excluding land and buildings where business is based on the latest financial statements or having annual sales results of more than Rp50 billion based on the latest financial statements;

2. Has a total investment value greater than Rp10 billion, excluding land and buildings;

3. Has the same issued capital value as paid-up capital, at least Rp 2.5 billion.

Regarding the percentage of share ownership calculated based on the nominal value of the shares, and for each shareholder, the shareholding is at least IDR 10 million.

These are crucial things about basic capital and investment as a condition for the establishment of PT PMA in Indonesia. Contact us now and see how our service can ease your worries.