Setting up a PMA Company is the best way to live and do business on the island. And it shows that you’re serious about giving back.
Setting up a PMA (Perseroan Terbatas Penanaman Modal Asing) company in Indonesia, including Bali, is typically required for foreigners who want to conduct business activities and have long-term residence in the country. However, setting up a PMA company is not directly related to living in Bali as a foreigner.
Here are some reasons why establishing a PMA company might be necessary if you plan to live in Bali and engage in business activities:
- Legal Compliance: Indonesian law generally requires foreigners who wish to engage in business activities to establish a legal entity, such as a PMA company, to operate legally within the country.
- Work Permits (KITAS): As a director or employee of a PMA company, you may be eligible to obtain a KITAS (Kartu Izin Tinggal Terbatas), which is a limited stay permit that allows you to live and work in Indonesia legally.
- Residency: While setting up a PMA company isn’t directly linked to residency, having a business presence in Indonesia may facilitate obtaining certain types of visas and permits for residency, especially if you intend to stay in the country long-term.
- Bank Accounts and Taxation: A PMA company allows you to open a corporate bank account and conduct business transactions in Indonesia. It also enables you to comply with local tax regulations and fulfill reporting requirements.
- Ownership and Control: Establishing a PMA company allows foreigners to have a legal ownership stake and operational control over their business ventures in Indonesia, subject to certain ownership restrictions and regulations.
It’s important to note that the specific requirements and regulations regarding foreign investment and business ownership in Indonesia, including Bali, may vary and are subject to change over time. Therefore, it’s advisable to consult with legal and financial professionals who are knowledgeable about Indonesian laws and regulations before making any business or residency-related decisions in the country.
