Starting a private limited company in Indonesia is a promising and strategic decision. However, it requires a thorough understanding of legal frameworks, regulatory requirements, and corporate structures to navigate the complex business setup process in this dynamic Southeast Asian nation.

A Closer Look at Private Limited Companies

Both locals and foreigners commonly utilize Indonesian private limited companies to conduct business there. They serve as separate legal entities, independent from their shareholders and directors, ensuring the protection of personal assets. 

Depending on ownership, Indonesia has two types of private limited companies.

A Closer Look at Private Limited Companies

Both locals and foreigners commonly utilize Indonesian private limited companies to conduct business there. They serve as separate legal entities, independent from their shareholders and directors, ensuring the protection of personal assets. 

Depending on ownership, Indonesia has two types of private limited companies.

Foreign Company (PT PMA)

A Foreign Limited Liability Company, commonly referred to as PT Penanaman Modal Asing (PT PMA), is a favored choice for foreign investors looking to invest in Indonesia. Moreover, PT PMA is a legal entity that allows foreign individuals or businesses to own shares and engage in commercial activities in Indonesia. 

It is similar to a limited liability company (LLC) in the Western context and can be fully or partially foreign-owned, subject to certain restrictions in specific sectors. Additionally, investors from ASEAN member states have higher foreign share ownership percentages in specific business fields.