Company Restructuring
After setting up a PMA, most business owners are usually happy to have a large part of the paperwork out the way so they can focus on more practical business matters. If you are one of them, it’s still important to ensure that you are up-to-date and following all the regulations set by the Indonesian government. In some cases, you may need to do PMA restructuring due to regulation changes or simply to make sure your business is running as smoothly as possible and know that you are doing everything you can to make your business venture in Indonesia a success.
PMA restructuring is a process that involves reorganizing your company's management, licensing and operations so that you can improve the efficiency of your business. Some of the changes may also be geared towards increasing productivity, improving products and service quality or reducing overheads. It may also involve closing any business units that are unprofitable or that are not benefiting the company overall. This way, you can keep your customers and shareholders happy whilst ensuring that your PMA complies with the current statutory requirements.
Common scenarios for PT PMAs to restructure.
Personal Information Change
Personal identification information of shareholders can sometimes change, perhaps due to marriage and getting a new surname, the issuance of a new passport number or even a change in nationality. Once again, it is essential to reflect these changes in your PT PMA's paperwork.
If you feel that your existing PT PMA requires an update or restructuring after reading the above information, we can help! Our experienced team is more than happy to provide expert advice and guide you through the process. With our in-depth knowledge of Indonesian regulations, strong business network and commitment to excellence, we will be there for you every step of the way.
If you have any queries or if you find the idea of restructuring your PMA a little overwhelming, please don’t hesitate to reach out to us. As experienced business owners ourselves, we are well-placed to help our clients maintain their businesses more profitably and in adherence with the law. Our goal is to provide you with trustworthy and professional advice and ensure that your PMA restructuring is efficient and stress-free. We look forward to working with you and contributing to the continued growth and success of your business in Bali.
Regulatory Changes
Indonesia often introduces new regulations from various governmental authorities, such as Immigration, the Investment Coordinating Board (BKPM) and the Ministry of Law and Human Rights. Some of the changes in regulations could affect your business and making sure you adhere to them is crucial to avoid any future problems.
Some recent examples of such changes include a recent regulation by the Ministry of Law & Human Rights which requires Investor KITAS (residency) permit holders to hold shares valued at a minimum of Rp. 10,000,000,000, instead of the previous Rp. 1,000,000,000. Existing PMAs with lower share valuations have since been given a period to restructure their shares by December 31, 2024. In 2021, another change occurred, where all PT PMAs established before 2021 were required to reapply for the new online single submission (OSS) business licensing system, which streamlined the permit issuance process by moving it to a digital platform.
Business Licensing (KBLI) Changes
As a PMA owner, you are probably someone who is always on the lookout for new business opportunities and given some time, you may decide to shift your operations to different industries. Changes like this often require obtaining additional business licenses (KBLIs) to align with your new business activities.
It's essential to ensure that your PT PMA holds the appropriate licenses that match your daily operations so that you can remain compliant with the regulations.
Change of Shareholders
As you spend more time in Indonesia and your PT PMA grows, it’s likely you will meet some new people you would like to work with. You may consider adding new investors to your shareholders board or some the existing shareholders may wish to step down. To facilitate these changes, you may need to raise your PT PMA's capital or process a share transfer. It's important to note that any changes in your shareholders' structure require the consent and sign-off of all shareholders within your PT PMA.
Office Address Change
If your PT PMA has a physical business presence, it's important to keep your registered office address up-to-date. If you move your business operations to a new location, then your business address will need updating so that you are compliant and so that all correspondence, such as tax or bank letters, can be correctly delivered to your new address which will minimize the risk of missing important notifications.
