Best Investment & Business Structuring Lawyers in Medan

About Investment & Business Structuring Law in Medan, Indonesia

Investment and business structuring law in Medan governs how individuals and entities establish, own, restructure and wind down companies. In Indonesia, licensing is centralized through the Online Single Submission OSS system, and investment policy is set at the national level. Medan follows these national frameworks via BKPM and DPMPTSP for licensing and registration.

Key concepts include business entity types such as PT PMA (foreign investment) and PT PMDN (domestic investment), shareholding rules, and the requirement to obtain NIB and other clearances through OSS. The 2020 Job Creation law known as UU Cipta Kerja significantly changed licensing, injects digital filing, and modifies the Daftar Negatif Investasi (investment list) across sectors.

Indonesia’s investment licensing is now largely centralized through OSS, with reforms that affect ownership and licensing workflows.

Sources: OSS official portal and BKPM guidance provide the framework for filing, licensing, and ongoing compliance in Medan and elsewhere in Indonesia. OSS • BKPM • Setneg - UU Cipta Kerja

Why You May Need a Lawyer

A Medan based investor or business owner may need legal help to navigate complex structuring and regulatory requirements. Below are concrete scenarios grounded in local practice.

• Setting up a Medan based PMA or PT PMDN requires proper corporate documents, OSS registration, and alignment with foreign ownership rules. A lawyer helps prepare the deed of establishment, approve shareholding structures, and file the NIB through OSS with local authorities.
• A Medan manufacturer plans a corporate restructure or M&A to bring in a local partner or reorganize ownership. A lawyer coordinates due diligence, regulatory approvals, and post merger integration under Law No 25/2007 on Investment as amended by UU Cipta Kerja.
• A cross border investor seeks to transfer shares or reorganize holdings to comply with sectoral restrictions. A lawyer advises on compliance with the Daftar Negatif Investasi and ensures regulatory approvals are obtained without triggering penalties.
• A family owned business in Medan wants to convert from a domestic company to a PMA or to adjust ownership to meet new standards. A legal counsel guides entity conversion, cross border implications, and related tax considerations.
• A Medan company faces regulatory scrutiny or a dispute with regulators or the tax authority. A lawyer helps manage investigations, negotiate settlements, and safeguard corporate interests through appropriate remedies.
• New licensing requirements for local content or sector specific compliance (TKDN) require detailed documentation and periodic updates. A lawyer helps maintain ongoing compliance and avoid license revocations.

Local Laws Overview

Two to three core statutes shape Investment & Business Structuring in Indonesia, including Medan, with changes introduced by the Job Creation reform package.

Law No. 25/2007 on Investment governs baseline investment rights and obligations. It is widely used in conjunction with Law No. 11/2020 on Job Creation to streamline licensing and investment processes. In practice, all foreign and domestic investment activities pass through the OSS system for registration and licensing.

UU Cipta Kerja modifies investment rules and centralizes licensing through OSS and the negative investment list.

The Law No. 40/2007 on Limited Liability Companies remains foundational for corporate structures in Medan, including PT PMA and PT PMDN, with amendments and implementing regulations tying to investment law and licensing reforms. This impacts how share ownership, capital structure, and governance are organized for Medan based businesses.

Company formation and governance are regulated at national level and implemented locally via DPMPTSP and notary services.

Recent trends in Medan align with faster processing times for new ventures through OSS and more transparent foreign ownership rules. Practitioners emphasize due diligence in sector specific requirements and ongoing compliance to avoid licensing interruptions. For practical guidance, engage a lawyer early in the planning stage to tailor the structure to your sector and investment scale.

Digital licensing under OSS reduces multi step approvals but requires exact documentation and timing.

Sources: BKPM guidance and OSS operations pages provide the latest process maps and sector guidance.

Frequently Asked Questions

What is Investment & Business Structuring in Medan, Indonesia?

Investment and business structuring covers how to legally form, own, restructure, and wind down a business in Medan. It includes choosing the right entity type, obtaining licenses via OSS, and ensuring regulatory compliance. A lawyer can align your goals with the applicable laws and local requirements.

How do I start a PMA in Medan for a foreign investor?

Prepare a PT PMA establishment deed with a notary, obtain approvals through OSS, and file for NIB and business licenses. A local lawyer helps compile the share structure and cross border documentation to meet foreign ownership rules.

When does the OSS licensing framework apply to Medan based businesses?

OSS is used nationwide for registering businesses and licenses, including in Medan. It centralizes the process for NIB and related approvals for both new and existing investments.

Where can I find official rules for investment and licensing in Indonesia?

Official rules are published by BKPM and the government through OSS and peraturan portals. See BKPM for investment regulations and OSS for filing procedures.

Why does UU Cipta Kerja matter for Medan investors?

UU Cipta Kerja introduced simplified licensing, online filing, and changes to the negative investment list. It streamlines how Medan based businesses obtain approvals and operate across sectors.

Can a Medan company operate a foreign owned business?

Yes, if the business meets the PMA requirements and foreign ownership thresholds under Law No. 25/2007 as amended by UU Cipta Kerja. Compliance with OSS is mandatory for licensing.

Should I hire a lawyer for a corporate restructuring in Medan?

Yes. A lawyer coordinates due diligence, regulatory approvals, and documentation, reducing the risk of non compliance and delays in Medan.

Do I need a local partner to invest in Indonesia from Medan?

Foreign ownership limits depend on the sector and investment classification. A lawyer can determine whether a local partner is required and help structure ownership accordingly.

How long does it take to obtain NIB and related licenses in Medan?

Processing times vary by sector and completeness of documents. Typically, OSS approvals can take days to several weeks once all documents are in order.

What is the difference between PMA and PMDN in practice?

PMA involves foreign investment and allows foreign ownership meeting sector limits; PMDN is domestic investment with Indonesian ownership. Both require OSS registration and appropriate licenses.

Is a notary needed for establishing a PT PMA in Medan?

Yes. A notary public is required to draft and execute the deed of establishment and other corporate documents, which are then registered with the relevant authorities.

Additional Resources

• Indonesia Investment Coordinating Board (BKPM) - Official national policy and guidance on investment, sector rules, and licensing. BKPM
• Online Single Submission (OSS) - Central portal for business registrations, NIB, and licenses. OSS
• Ministry of Law and Human Rights (Kemenkumham) - Notarial and corporate law framework, company registrations, and notary services. Kemenkumham

Next Steps

1. Define your investment type and entity structure (PMA or PMDN) and identify your ownership goals for Medan.
2. Collect essential documents (passport copies for foreign shareholders, company documents, articles of association) and determine if a local partner is needed.
3. Engage a Medan based corporate or investment lawyer to advise on the optimal structure and draft necessary agreements.
4. Prepare and file your OSS registration, NIB, and any sector specific licenses through the OSS portal.
5. Complete notary, deed of establishment, and share transfer documentation as required by Law No 40/2007 and related regulations.
6. Obtain all approvals and ensure ongoing compliance with annual reports, tax filings, and sectoral regulations in North Sumatra.
7. Set up a plan for ongoing governance, regulatory changes, and potential restructures with a legal counsel to mitigate risk.