Build a Hotel in Bali
Foreign Limited Liability Company (PT PMA) is Indonesian legal entity that can be owned by foreigner;
Build Hotel: The PMA needs 30% Local investor. Could be nomine person or PT?
Build Condotel: could be 100% owned by foreigner, but needs at least 2 investors
Build Hotel: Create a PMA as Hospitality, manage hotel. Sing contract with a local PT for manage 100% the hotel. PT buy the land and build the hotel.
The PMA company registration process as follows:
No. Procedure Duration days
1 Approval of company name at the Ministry of Law and Human Rights 5
2 Preparation of Article of Association by Notary 10
3 Approval of Deed of Establishment at the Ministry of Law and Human Rights 10
4 Obtain Certificate of Domicile from local district office 14
5 Obtain Tax payer registration number (NPWP) 14
6 Obtain Company Registration Number (NIB) 10
➢ Period : 3 months ➢ Fee : USD 4.000
Cekindo is able to provide Local Director nominee at USD 3500/year until the company appointed its own local director. ??
After obtaining the Capital Investment Registration or Business License, in the first 5 year, it is mandatory required to invest in Indonesia with minimum IDR 10 billion. This amount is applied for one business line and will be multiplied in accordance how many business line needed.
Minimum IDR 10 billion (USD 800 000)
25% (200.000$).......... of paid-up capital
75% (600.000$) Can use for construccion of the hotel or condohotel, or hospitality contract with PT?? (600.000$ minimum for 25 years, or more)
The investment plan could include non-financial investment and the paid-up capital could be submitted after company established and has bank account (stated on capital statement letter)
Min. 2 shareholders; 1 director, and 1 commissioner.
*all of stakeholders can be foreigner. PERSON OR ENTITY?
The foreign director must have local presence and required to obtain limited work and stay permit (KITAS). If the foreign director do not wish to live in Bali, the company is required to assign a local director.
- For business line that shall apply for Investment Capital Registration, it is mandatory to fulfill investment plan before getting Business License and running business. ??
- For the business line that directly apply for one year Business License, it is allowed to start running the business or apply any further license required while realizing the investment plan
2. FINANCE SERVICES ACCOUNTING & TAX REPORTING
Cekindo provides accounting and taxation services. After your company is established, it is
mandatory to submit monthly tax report although you have no activities and zero taxes.
After incorporation, Cekindo assists our client in the preparation and submission of Investment Activity Report (LKPM) quarterly with annual fee for USD 500 (includes 4 LKPM report)
The package of accounting and tax reporting as follows:
Monthly tax report (withholding tax and VAT)
Annual tax report
➢ Period Fee minimum 1 year service ➢ Fee : USD 6.000;
Implementation fee 300$ one time
Monthly fee 1 – 150 items 250$
(according to number of transaction) 151 – 300 items 400$
301 – 500 items 550$
Above 500 items 1$/item
Annual report/Tax Return 400$/year
Monthly VAT Reporting 50$/month
Items refer to all financial documents, e.g. invoice, receipt, bank statement, etc.
Items refer to Ledger inputs or number of Journal in the ledger e.g. certain period of invoices can be included within one Journal ledger other financial items includes receipt, bank statement, etc.
The fee shall be paid in advance for 1 year period
25% local TAX (income)
Taxation issues regarding dividends abroad:
KITAS holder - 10% tax
Legal Entity - 15% tax
Foreigners - 20% tax
For funds that are entering Indonesia, there is no tax at all. These are the basic breakdown of the taxation regarding dividends and incoming transfers to Indonesia. However, we are also able to provide tax and accounting consultation if there are further detailed questions. We have a dedicated tax and accounting department that is ready to help you