Malaysia Hotline: +603- 2141 8908
Minimum Requirement by Company Law
Article 32 of the
Company Law sets the minimum amount of authorized capital for a limited
liability company in Indonesia on 50 million rupiahs. The same article also
regulates that for certain sectors the minimum amount may be set higher.
Micro, Small, Medium and Large Limited Liability Company
Types
The SME law further
defines article 32 of the company law and splits the limited liability company
up in the following company types:
1. Micro Company: a
limited liability company will be categorized as micro company if:
a. it has a net
capital of maximum 50 million rupiahs, excluding land and buildings; or
b. it has an annual
sales turnover of maximum 300 million rupiahs.
2. Small Company: a
limited liability company will be categorized as small company if:
a. it has a net
capital of between 50 million rupiahs and 500 million rupiahs; or
b. it has an annual sales
between 300 million rupiahs and 2.5 billion rupiahs.
3. Medium Company: a
limited liability company will be categorized as medium company if:
a. it has a net
capital of between 500 million rupiahs and 10 billion rupiahs; or
b. it has an annual
sales between 2.5 billion rupiahs and 50 billion rupiahs.
4. Large Company: a
limited liability company will be categorized as large company if:
a. it has a net
capital of more than 10 billion rupiahs; or
b. it has an annual
sales of more than 50 billion rupiahs.
Company Type for
Foreign Investment Limited Liability Company (PT PMA)
Article 1(4) SME law
defines a large company as an economically productive company which is
conducted by business entities with total net assets or annual sales greater
than a Medium Company type, which includes state-owned enterprises or private
national company, joint ventures, and foreign companies conducting economic
activities in Indonesia. Based on the foregoing, foreign investors can only
establish a large company type in Indonesia in the form of a PT PMA. The micro,
small and medium company types are business forms which can only be utilized by
domestic investors.
This is recently
confirmed by regulation of the head of the Indonesia Investment Coordinating
Board (BKPM), number 5 of 2013 as amended by BKPM regulation number 12 of 2013,
which regulates in article 22, in line with the SME Law, that the authorized
capital of a foreign investment company (PT PMA) must amount at least 10
billion rupiahs.
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.net, http://en.tannet.com.my