A foreign investor can start establishing a company in Indonesia while visiting the country as a tourist. However, a tourism visa does not give the investor permission to work for the company or receive payment for work or business activities in Indonesia.
The key distinction is between registering the company and what the investor is personally permitted to do while in the country.
Can You Register a PT PMA While Visiting Indonesia as a Tourist?
Foreign investors generally establish a PT PMA, Indonesia’s foreign-owned limited liability company.
The incorporation process does not depend entirely on the foreign shareholder’s immigration status. Company documents can be prepared with a notary, while registration and business licensing are handled through Indonesia’s corporate registration and OSS systems.
Setting up a PT PMA? Start your incorporation with MAP Resources Indonesia at info@mapresourcesindonesia.com
This means incorporation can begin while the investor is visiting Indonesia as a tourist. Being a shareholder, however, does not automatically give the investor permission to work for the company.
What Can You Do on a Tourist Visa?
A tourist visa can cover certain meetings and other permitted visitor activities. It does not permit the holder to sell goods or services, or to receive payment for work or business activities, in Indonesia.
Foreign investors whose main purpose in Indonesia is to conduct business activities should use the visa category corresponding to those activities.
Which Visa Is Appropriate for Business Activities?
Indonesia has specific visit visa categories for business activities. Depending on the category, these can permit business discussions, meetings, negotiations, and signing agreements.
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These visas do not automatically permit the holder to work as an employee or receive remuneration from an Indonesian company. Investors who intend to remain in Indonesia and actively manage their company may instead require a limited-stay visa and permit covering those activities.
When Does an Investor Need an E28A Investor Visa?
The E28A investor visa is intended for qualifying foreign investors carrying out investment activities in Indonesia. It can cover activities connected with establishing and developing an investment and, where the requirements are satisfied, acting as a director or commissioner of the company in which the foreigner invests.
To use the E28A investor route, the foreign investor generally needs to hold at least IDR 10 billion (USD 600,000) in shares in the sponsoring company. If the shareholding is below this amount and the investor serves as a director or commissioner, the appropriate work visa for that position may be required instead.
What Are the Current PT PMA Capital Requirements?
The general minimum issued and paid-up capital for a PT PMA is IDR 2.5 billion (USD 150,000) per company, unless different sector-specific requirements apply.
Need to confirm the capital required for your PT PMA? Contact MAP Resources Indonesia at info@mapresourcesindonesia.com
This is separate from the company’s investment plan. A PT PMA generally requires an investment value of more than IDR 10 billion (USD 600,000), excluding land and buildings, for each applicable business classification and project location, subject to specific rules and exceptions.
The paid-up capital requirement and investment-plan requirement are separate thresholds.
Register Your Company With MAP Resources Indonesia
MAP Resources Indonesia assists foreign investors with PT PMA incorporation, business licensing, notarial coordination, and investor visa applications. Contact MAP Resources Indonesia at info@mapresourcesindonesia.com.
