Establishing PT PMA in Indonesia requires the business to have a business entity. This business entity is in the form of PT PMA or a foreign direct investment company. Aside from the foreign company establishment, they also need an office address to complete the legal documents. Office addresses are important to prove that the business is a legitimate company. Most of the time, government agents will pay a visit to the office address to ensure that the company is real.
Establishing PT PMA in Indonesia
Establishing PT PMA in the country is not a difficult feat as long as the investors are well prepared. Entrepreneurs need to prepare various identification documents, sufficient capital fund, a business plan, as well an organizational structure. If all of the aforementioned preparation is settled, the process shouldn’t be difficult. Moreover, with service providers like MESO, entrepreneurs only need to submit the documents to the service provider.
The service providers will then process the documents to the government bodies. Overall the process will take between a month to three. Once everything is accepted and agreed upon by the government, the entrepreneurs will receive their corporate’s legal document. With the legal document, the company will be able to conduct business activities and open bank accounts.
Virtual Office Description and Benefits
During the process of establishing PT PMA, often the company wonders about the office address. As mentioned before, an office address is necessary for business registration. Without a proper office address, it is impossible to get a legal permit. This is also the reason why a virtual office is a popular choice for companies.
Although foreign companies usually opt for private office, some decide to rent a virtual office. Through using a virtual office, the office address is guaranteed to be in the proper business zone area. Another reason is that the rental fee is affordable. The cost of a year of rental is around 1000 dollars or less.
Furthermore, companies can save a lot of costs and trouble. Some virtual office packages have included dedicated telephone number, call forwarding service, as well as personalized greeting. Companies do not need to trouble themselves with telephone system application and such. In addition, virtual office providers usually have a meeting room and lounge facility as well.
Furthermore, foreign companies that use virtual office will be able to save on receptionist salary. A virtual office package usually includes a receptionist which is responsible for mail and call handlings. They will also be there to greet company clients or visitors.
Disadvantages of Using Virtual Office when Establishing PT PMA
Nonetheless, despite the many benefits virtual office is not the best option for foreign companies. The reason is that the service does not provide a physical office for the employees to work in. On the other hand, a lot of foreign companies choose to rent a private office. This option is also affordable and allows the company to have a real professional office.
Some of the frequent disadvantages that foreign companies may experience while using virtual office are:
– Jeopardizing Permit
It is no secret that oftentimes government agents will come to foreign company offices for a surprise visit. The purpose of these visits is to investigate the company’s operation. If the foreign company does not have a proper office, they may be in danger of permit revocation. This is because the government agent may deem that the company is a fake company made for illegal means.
Although it is not a guaranteed case, it is much more recommended to rent a private office than a virtual office. On the other hand, if the company is using a resident address for the company address, rejection is automatic.
– No physical office
Having no physical office can also be troublesome to run office. An office, like a company representative, acts as a façade of the company. If the foreign company operates from a residential area or a shophouse it will give off an unprofessional and unserious image.
On the other hand, having a physical office in a proper office tower paints a professional and bonafide image of the company. Customers will also find it difficult to trust companies that have no physical office as they are technically non-existence. The same also applies to potential investors and business partners.
In short, establishing PT PMA in Indonesia is simple with good preparation. Although oftentimes virtual office is used as the office address, it has its risk. For a safer option, it is best to rent a private office instead. Trusted office providers like MESO will be able to present various options to suit the clients’ needs.
Feel free to contact MESO for further information on our website or send us an e-mail. For a quick response, we are also available on Whatsapp at +62812-1315-4189.