For companies in Indonesia looking to form a limited liability company, PT Registration, or Perseroan Terbatas company registration, is the appropriate option. This registration process is designed for Indonesian company owners who want to establish a legal corporation that provides limited liability protection in order to formalize their business operations.
A Perseroan Terbatas, or PT, is appropriate for Indonesian nationals and is meant for local businesses. If you are an Indonesian citizen or have a reliable Indonesian partner, we advise using this business structure. Establishing a PMA (Penanaman Modal Asing) could be more suitable for foreigners. However, some corporate operations in Indonesia are limited to PT firms, necessitating in some circumstances the establishment of a PT by international corporations or individuals.
Steps to Register a Company in Indonesia
- Have a notary register the firm name. Three words must be included in the name.
- The Deed of Establishment is drafted by the Notary.
- The Decree of Approval is issued by the Ministry of Law & Human Rights.
- Get a Tax Identification Number.
- Get the Nomor Induk Berusaha, often known as the Registration Number (NIB).
- Use the Online Single Submission System to obtain the Business License.
- If necessary, get a commercial license.
Benefits of Setting Up a PT Company in Indonesia
- Limited Liability Protection: Reducing one’s exposure to liability is a primary advantage of PT registration. In the case of corporate problems or legal challenges, shareholders’ liability is often limited to the value of the shares they have subscribed for, therefore limiting personal financial risk.
- Distinct Legal Entity: A PT is regarded as existing independently of its stockholders. Due to this division, the business may now operate independently of its owners and make agreements, buy assets, and file lawsuits.
- Investor Attraction: PT registration can draw in new investors and increase the legitimacy of your company. Formal legal companies with defined corporate governance systems and limited liability protection are preferred by many investors.
- Local Market Access: Becoming registered as a PT gives you access to the enormous Indonesian market. It represents your dedication to following regional laws and fostering confidence with regional partners, suppliers, and consumers.
- A PT has eternal existence, which means that it will always exist even if its ownership structure changes or its stockholders pass away. In the long run, this guarantees stability and continuity for corporate operations and future succession planning.
- Ability to recruit Workers: You may scale your business operations and increase your personnel as needed since a registered PT is allowed to recruit workers in Indonesia.
- Financing possibilities: PT registration makes it possible to take use of a number of financing options, including bank loans, investment possibilities, and the issuance of bonds or shares to obtain money for the expansion and growth of businesses.
- Professional Image: Becoming registered as a PT improves your reputation and gives prospective customers and business partners more faith in you. It proves your dedication to conducting business in Indonesia in a way that complies with the law.
Minimum Requirements to Register a PT in Indonesia
- 2 Local Shareholders
- 1 Local Director
- 1 Local Commissioner
Furthermore, it is possible to establish many business sizes in Indonesia, with each one needing a particular amount of paid-in capital or investment:
Small: above 50,000,000 to 500,000,000 IDR
Medium: 500,000,000 to 10,000,000,000 IDR
Large: 10,000,000,000 IDR and above.
Note: A firm must have a paid-in capital of at least IDR 1,100,000,000 and a minimum size of Medium in order to hire foreign workers in a PT.
Document Requirements to Set Up a PT Company in Indonesia
- A minimum of two owners.
- Names and contact information for shareholders of the company: (KTP and NPWP are for Indonesian individuals. And copy of the Articles of Establishment and any changes, Ministry of Law and Human Rights approval, Domicile Letter, Tax ID, Business License, and Company Registration Certificate (TDP/NIB) are required for Indonesian companies)
- The Commissioner’s and the company directors’ names and contact information: (For persons in Indonesia: phone number, email address, KTP, and NPWP. For International Persons: Current passport, phone number, and email address)
- The building management’s original domicile.
- A copy of the lease that the business and building management signed.
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