How To Set Up A Foreign Company In Lombok

JN Wirajagat

Your Personal Consultant

Investing through foreign company in Lombok is the best and the most legal way for foreigners to invest. But you may wonder how to set up a foreign company in Lombok. It’s easy and fast. It’s just a matter of weeks.

Foreign investment company –locally known as PMA (Penanaman Modal Asing)– can be 100% owned by foreigners, depending on the area of business.

Below is an important basic knowledge for you to be aware of before you set up your foreign company in Lombok.

Foreign Company Management Structure

Share Holders – at least 2 persons.
Board of Commissioner – at least 1 person.
Board of Director – at least 1 person.

Shareholders can be either a natural person (individual) or legal person (corporate, foundation etc.) or combination of both. Shareholder can also act as commissioner or director at the same time. However, please bear in mind that foreign director requires work permit.

Under the law, director runs the operational of the company and is authorized to represent the company internally and externally, sign documents and contracts etc. While shareholders reserve the highest right and —followed by commissioners— in policy or decision making, and supervision.

Foreign Company Registration Requirements

Founders’ Passports or ID cards
Founders’ Home Address, Emails & Phones
Company's Name (must reflect the business area)
Company's Address, EMails & Phones in Indonesia
Business Area
Project Address

Steps Summary on How to Set Up A Foreign Company in Lombok

Step 1 – Client submit company name to Wirajagat & Partners.
Step 2 – Wirajagat & Partners issues the Incorporataion Act.
Step 3 – Ministry of Law and Human Rights issues Legal Entity (PMA Company) Approval.
Step 4 – Investment Coordinating Board issues Business Identification Number.
Step 5 – Local government issues Domicilary Letter.
Step 6 – Regional Tax Office issues company's Tax Identification Number.
Step 7 – Business and Operational Licenses

Timeline

After client submit all required document, normally the foreign company is ready in two weeks and is eligible to to buy property in Lombok under it’s name.