NEWSPage index:Home > NEWS > Details page

Advantages of Indonesian Limited Liability Company

Update Date:2015-10-12 8:37:54 Source:Tannet (Malaysia) Sdn Bhd Views:618

Malaysia Hotline: +603- 2141 8908


Most foreign-owned companies establish the Indonesian version of a Limited Liability Company (LLC), which is known as a PMA—Penanaman Modal Asing –in Indonesia, since it can take the form of a 100% foreign-owned limited liability company or can be established as a limited liability company through a joint venture with Indonesian partners. The advantages of this type of company are that it gives the foreign investor full control over the direction of the company, no restriction on where a PMA can operate in Indonesia, and reduces the risk in finding a suitable local partner.

Certain business fields require a foreign-owned company to establish a local partner and are allowed up to a certain percentage of ownership depending on the sector. The specifics of this are covered in the Negative Investment List. However, there are some business activities that are closed for foreign ownership based on Negative Investment List, therefore should  be established as Local Indonesian companies (refers to President Regulation of Republic of Indonesia No.39/2014 concerning list of business field that are closed to Investment and business field that are conditionally open for investment). In this case for foreign investors still have alternative option by establishing a local nominee company in form of local limited liability (i.e. Perseroan Terbatas) with 100% local shareholder but keeping under foreign investors control.


Contact us

If you have further queries, please contact Tannet
24 hours Malaysia hotline:603-21418908;
24 hours Hong Kong hotline:852-27837818;
24 hours Hong Kong hotline:86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.nethttp://en.tannet.com.my

Previous:Malaysia Copyright Protection

Next:Hong Kong Company Annual Return