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Buying land through a PMA company
Sorry for starting a new thread about how to buy land but I couldn't find what I was looking for in the other thread as it was so long and I have a very short attention span. I am about to purchase some land in Bali through a dormant PMA I have in Indonesia. From what I have been told it is the safest way to purchase land in Indonesia as it gives you ownership and more importantly control of the asset. While I love and adore my wife, I have heard far to many stories of bules losing land and homes because the marriage takes a turn for the worst and everything is in the wifes name. It also has the added benefit of allowing me to control my own working KITAS, instead of being at the mercy of one employer. I am amazed I am not seeing this way of purchasing land promoted more in this forum, which has me concerned that there are some major problems with this system that I am not aware of. Can anybody give a reasoned opinion on this?
I can't say the exact reason for this. I suspect it is because there is a perception that PMAs are expensive and not so easy to set up.I am amazed I am not seeing this way of purchasing land promoted more in this forum, which has me concerned that there are some major problems with this system that I am not aware of. Can anybody give a reasoned opinion on this?
This is also not straight forward. Whether you are a foreigner or not, I believe you are entitled to half of all assets in the case of a divorce. If your spouse dies before you, you have one year to sell any property.While I love and adore my wife, I have heard far to many stories of bules losing land and homes because the marriage takes a turn for the worst and everything is in the wifes name.
Only a notary or lawyer can really give you an accurate answer to your questions.
Give a man a fish and he will eat for a day. Teach a man to fish and he will sit in a boat drinking beer all day.
I think a PMA can only lease land for the purpose on which the company is set up for, I need to check
I think the goverment is not happy with PMA companys set up just to buy land.
You need a prenup so your wife can only have the deeds in her name. When you want the title to land
you have to show ID & your wife's card will show married, so you have to show your ID & you beening
a foreinger can not own land in Indonesia.
Hi,
I got some information from okusi about this subject when i was at their office a few days ago.
According to them it is possible to buy property with your PMA.
If you also have a KITAS sponsored by your own PMA the land will be on your name, while you are the director of the PMA. If you report to the tax office every month that you have a 'zero activity' PMA ther will be no problem.
You need to have an office adress where your PMA is registred. Okusi can supply you an adress.
Please look on there website for further info Okusi Associates | Indonesian Company Establishment, Management Services, Research
I hope this helps,
Greetings,
Hugo
Thanks for that. It is good to know. Do you know how much roughly it costs to set this up and what are the ongoing expenses?
Give a man a fish and he will eat for a day. Teach a man to fish and he will sit in a boat drinking beer all day.
- for setting up the PMA (setup aprox.2months):
Indonesian Company Establishment Package - US$3,200
Establish your own Indonesian PMA incorporated company (PT.) including all foreign investment approvals, articles of incorporation, government registrations, local licensing, tax numbers, etc. 100% foreign-owned companies are now possible in many cases!
- for you registered office address:
Company Domicile Services: Okusi Associates can provide a domicile (registered address) for your company for an additional US$685 per year, which includes:
company domicile at a well-known central street address in either Jakarta, Batam or Bali;
notification of events;
point-of-contact for official communications;
mail collection and forwarding by email.
zero-activity tax reporting (monthly and annual).
Once companies domiciled with Okusi Associates become active (trading), they will be required to demonstrate that they are undertaking their reporting responsibilities to the tax office. Okusi Associates provides tax reporting services to co-domiciled companies for free until such time as they become active ("zero-activity reporting").
- than the usual costs for your kitas(setup aprox.1 month after finishing the PMA)
Work Permit & Resident Visa Package (KITAS/IMTA) - US$864
Work or reside in Indonesia legally, without immigration problems.
Fee includes:
Manpower Approval - RPTKA (if required), Manpower Dept Recommendation.
Working Visa & Work Permit - KITAS, IMTA, Foreign Workers Report.
Other Permits - POA, SKPPS, STMD, STM, SKLD, etc.
Note that the above fee does not include the compulsory US$1,200 "Skills & Development Fund" levy payable to the Dept. of Manpower, should this be necessary. Family members of the holder of the working permit do not have to pay this levy.
If you do not have a sponsor, Okusi Associates can arrange one for you with an additional payment of US$959, subject to our appraisal and approval.
------
so the costs are:
setup pma usd 3200
yearly domicile services usd 685
yearly costs for your kitas
greetings,
Hugo
Last edited by heerhugo; 11-11-2010 at 07:11 PM.
i forget:
You need 2 foreigner names, only the director (yourself) has to be in indonesia. The other can be for example your brother living outside indonesia.
You need 1 indonesian name, which is the shareholder for 51%, you setup an agreement by the notary that the shareholder gives al the responsibilities to the director (also the losses and profit). So the shareholder has nothing to do anymore with the company and it is your 100% resposibility for the PMA
I think if your PMA has no active for 4yrs the goverment will close it.
If you employ a 1 overseas worker you will have to have 2 local workers
in your manpower approval you have to state the reason you need to employ him & contract.
so you need a turnover?
Also is the shareholder split 55/45?
The tax man in Indonesia expects you to increase you turnover every year & you pay tax on your turnover not profit.
Not true
Not sure your info is correct Fred2 .. I have had a dormant PMA company for 4 years now and it is still active. As long as you file your required annual paperwork (tax etc) you are fine. Also with a PMA company you can have 100% foreign ownership - its only certain protected industries were foreign ownership is restricted to minority shareholdings. The ratios are also wrong for a dormant company you are fine with just 1 expat being employed. With regards to the taxman of Indonesia. If your company shows zero activity the taxman will have zero interest in you as he has zero chance of extorting any money from you. The owning and running of the company I know -- I was just wondering about complications with purchasing the land itself
any help for me and my family on this is greatly appreciate it
basic questions on forming PMA for the purpose of staying in indo long term with family (not married to indo or anything like that and have three children- US citizens):
ok PMA formation is around US$3k- one time cost
registered address etc US$800 or so per year
KITAS for family of 5 is how much ? US$864 ???? is that for 684 per person or for family? also is that a one time fee, per year or everytime you renew the visa?
US$1200 per year levy fees to government
THE MAIN QUESTION I HAVE IS : if the company is not active and was created just to stay there, the work permit/resident visa can be renewed indefinitely so we can stay for long term as long as tax is filed for the "no activity" company????? also how long is one KITAS for?
anyone who can answer please I thank you in advance
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