Best Investment & Business Structuring Lawyers in Pati

About Investment & Business Structuring Law in Pati, Indonesia

Investment and business structuring law in Pati, Indonesia governs how individuals and entities form, own, and operate companies within the regency. It covers entity types such as PMA (foreign investment limited liability company) and PMDN (domestic investment), licensing, reporting, and compliance obligations across national and local authorities. Local practice aligns with national frameworks like the Online Single Submission OSS system and regency level licensing processes.

OSS consolidates licensing and permits for investment through a single online platform, simplifying the start up process for many businesses in Indonesia.

Why You May Need a Lawyer

Establishing a PMA or restructuring a PT requires precise understanding of both national and local rules. A lawyer helps navigate the complex mix of corporate, investment, and licensing requirements in Pati.

• Setting up a PT PMA in Pati with foreign ownership: You must comply with national investment laws and obtain appropriate licenses via OSS. A lawyer ensures the correct share composition, capital structure, and board requirements are met from the outset.
• Restructuring shareholding or increasing capital in a PT PMA: Changes require notarial deeds, Ministry of Law and Human Rights approvals, and updated articles of association. A legal counsel coordinates filings and timing to avoid non compliance.
• Narrowing or expanding business licenses when expanding in Central Java: Local licensing, Izin Usaha, and Lokasi permits may be required. An attorney helps prepare the required documents and communicates with DPMPTSP Kabupaten Pati.
• Land and property matters for a commercial project: Foreign or domestic investors must navigate Hak Pakai, Hak Guna Bangunan or lease arrangements. A lawyer provides due diligence and contract review for risk mitigation.
• Disputes with regulators or suppliers: Violations of local zoning, environmental or labor regulations can trigger penalties. A lawyer helps negotiate settlements and coordinate administrative appeals.
• Tax and ongoing regulatory compliance: Compliance with national tax rules and local retributions requires careful record keeping. A solicitor can implement a compliance calendar and review filings.

Local Laws Overview

Indonesia’s investment and corporate framework in Pati operates under national laws, with regional implementation through OSS and local DPMPTSP offices. The main statutes shape how foreign and domestic investors structure entities and obtain permits.

• Undang-Undang Nomor 11 Tahun 2020 tentang Cipta Kerja (Omnibus Law on Job Creation) - diundangkan 2 November 2020. This law broadens and accelerates investment licensing and simplifies some corporate processes across Indonesia, including in regencies like Pati.
• Undang-Undang Nomor 25 Tahun 2007 tentang Penanaman Modal (Investment) - telah diubah oleh UU Nomor 11 Tahun 2020, membentuk kerangka dasar keinvestasian di tingkat nasional.
• Undang-Undang Nomor 40 Tahun 2007 tentang Perseroan Terbatas (PT) - mengatur struktur perusahaan terbatas, hak dan kewajiban pemegang saham, rapat umum pemegang saham, dan kewajiban administrasi.

Recent changes have focused on consolidating licensing and reducing duplicative permits through OSS. For detailed law texts, see official Indonesian sources.

Indonesian regulation database provides the official texts of the Cipta Kerja, Penanaman Modal, and Perseroan Terbatas for reference and compliance planning.

Frequently Asked Questions

What is PMA and PMDN, and how do they differ for a Pati business?

PMA is a foreign investment company with foreign ownership limits defined by law, while PMDN is a domestic investment company with Indonesian ownership. PMA requires OSS registration and specific foreign ownership rules in various sectors. PMDN follows domestic ownership rules and licensing under national law.

How do I register an investment in the OSS system and obtain a NIB?

Begin by creating an account on the OSS portal and submit your business data for a NIB. The process consolidates multiple permits into one application, with status updates in real time. Expect 1-2 weeks for standard processing depending on license complexity.

What documents are required to establish a PT PMA in Pati, Indonesia?

Documents typically include a notarized deed of establishment, articles of association, proof of paid-in capital, directors and commissioners lists, and a foreign shareholder plan. Local requirements may add land or location permits, and tax documents for registration.

How long does the PMA licensing process take in practice?

Processing times vary by sector and licensing complexity. Common timelines range from 2 to 8 weeks after submission, assuming all documents are complete and accurate. Delays can occur if additional information is requested.

Do I need a local partner to form a PMA in Indonesia?

No, a PMA can be owned by foreign entities or individuals with specific capital structures. Some sectors may have restrictions or local preference rules, so counsel is important to ensure compliance. Local knowledge helps with local licensing and reporting.

What is the difference between Izin Lokasi and Izin Usaha in local licensing?

Izin Lokasi designates the right to establish a business site in a specific area. Izin Usaha authorizes the business activity itself. In practice, both are often required and coordinated through the OSS and DPMPTSP processes.

Can a foreign investor own 100 percent of a PT in Indonesia?

Some sectors allow full foreign ownership under PMA, while others require a domestic share limit or strategic sector rules. Always verify sector specific rules in the current law and relevant regulations.

Where do I apply for building permits for a new factory in Pati?

Building permits are typically processed through the OSS system in coordination with DPMPTSP at the Kabupaten Pati. Local zoning and environmental requirements may also apply, with assessments tied to the Izin Lokasi and Izin Usaha.

What are the main tax obligations for a new business in Pati?

New businesses face corporate income tax, value added tax, and local taxes or retributions. You should implement an onboarding tax plan and periodic compliance reviews. A local attorney can help ensure timely filings and audit readiness.

Should I hire a lawyer for share transfers or M&A in a PT PMA?

Yes. Share transfers require official approvals, potential changes to ownership documents, and updates to the articles of association. An attorney helps with due diligence, contract drafting, and regulator filings.

Is land ownership allowed for foreign investors in Indonesia and how is it processed?

Foreign ownership of land is generally restricted, but leases and rights like Hak Pakai or Hak Guna Bangunan may be available under specific arrangements. A lawyer guides due diligence and the exact instrument required for your project.

Additional Resources

• BKPM - Badan Koordinasi Penanaman Modal - National investment coordinating agency providing licensing guidance and sector rules. https://www.bkpm.go.id
• OSS - Online Single Submission - Centralized portal for investment licensing and permits. https://oss.go.id
• Peraturan.go.id - Official regulation database for Indonesian laws and regulations. https://peraturan.go.id

Next Steps

1. Define your investment type and target entity form (PMA or PMDN) based on ownership and sector in Pati. Set clear goals and a preliminary capital plan. Expect 1-2 days of internal planning.
2. Assemble a documented checklist of required corporate documents, financial statements, and local permits. Engage a local lawyer early to review and organize materials. Plan 1-2 weeks for document collection.
3. Engage a qualified investment attorney in Pati to draft corporate documents, coordinate with a notary, and prepare for Kemenkumham and OSS filings. Schedule initial consultations within 1 week.
4. File your initial registrations via OSS and obtain the NIB, then begin preparing local licenses (Izin Usaha, Izin Lokasi) through DPMPTSP Kabupaten Pati. Allow 2-4 weeks for standard processing after documents are ready.
5. Complete notarial and regulatory approvals for the PT PMA or PMDN, including updates to the Articles of Association and director appointments. Expect 1-3 weeks after submission, depending on approvals.
6. Finalize licensing and position for operations by securing land rights or leases, environmental clearances, and tax registrations. Build a practical compliance calendar with your attorney for ongoing obligations.