how to register a PT

PT Registration: A-Z How to Register a PT (Perseroan Terbatas) in Indonesia

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The economic growth in Indonesia is accompanied by a growing population of new business people who are starting to emerge. This time we will discuss what PT registration is for those of you who are interested in doing setting up a business activities in Indonesia and build a company in Indonesia.

But before you continue to find out about the requirements for establishing a PT or how to register a company in Indonesia, it’s good to know in compliance advance about everything related to PT.

What is a PT?

PT, short for Perseroan Terbatas, is a business structure entity type established based on an agreement. Perseroan Terbatas (PT) is the term used to refer to a limited liability company. The company must follow local regulations especially if they want to employ foreigners.

PT is designed for Indonesians. Therefore, it is recommended that you register a PT establishment with your Indonesian partner. If you want to set up your own company, we recommend setting up a PT PMA (Penanaman Modal Asing) from foreigner investors.

Given that the establishment of this PT is based on an agreement, the requirements for the creation of this new PT must consist of at least two people. And this form of agreement, in fact, must be carried out before a notary and then made a deed so that it can be legalised by the Ministry of Law and Human Rights.

How to Start with Company Registration in Indonesia

To set up a PT company in Indonesia, there must be a Deed of Establishment that must be completed for entrepreneurs who want a business entities after you have chosen a name for your company and the name has been accepted. For this, you will also need the services of a registered Notary. The Notary will be responsible for helping you draft the Company’s Articles of Association.

  • Company Name
  • Place of Domicile of the Company
  • Purpose of the Company (e.g. business activity or type of company)
  • Capital Details (authorised capital, paid-up capital, issued capital)
  • Value and Number of Company Shares
  • Duties and responsibilities of directors and commissioners
  • Procedure for holding shareholder meetings
  • Procedure for distribution and utilisation of dividends and company profits

Obstacles to Set Up a PT Company in Indonesia Registration Process

There are some of the obstacles that often occur when establishing Perseroan Terbatas.

1. Capital

Not knowing the amount of authorised capital required when setting up a PT can be an obstacle. According to Indonesian Law No. 40/2007, the minimum initial capital of a PT is IDR 50 million, and entrepreneurs are required to deposit 25 percent of the funds value added tax id.

However, the regulation has been updated through Government Regulation No. 29/2016 so that the initial capital can be adjusted according to the founders’ agreement.

2. Name of the company

Coming up with a company name is a piece of cake. In fact, many entrepreneurs have to endure the disappointment of having their proposed PT name rejected.

For naming matters, you can refer to Government Regulation No. 43/2011 on the Procedures for Filing and Using the Name of a PT.

3. Documents

There are many essential required documents required to establish a PT. Some of them are identification number, NPWP, IMB, Domicile Certificate, Lease Letter, and also proof of the last building tax payment.

Therefore, prepare all these documents to expedite creating your company.

4. Business Licenses and Permits

The clarity of the office address is usually a problem for small entrepreneurs or startups that still need an official office.

But you don’t need to worry, because now there are services available from Lets Move Indonesia that make it easier for you and your Indonesian partners to register your company.

5. Time

To establish a company known as a local PT or PTs if you have more than one company, it takes quite a long time. It can take several days for the Deed of Establishment and the issuance of the Decree of the Ministry of Law and Human Rights.

Imagine if you had to take care of the establishment yourself; it would definitely take longer. That is why Lets Move Indonesia provides services to handle PT registration quickly and easily.

If an Indonesian shareholder wishes to transfer all of his/her shares to foreign ownership, it is necessary to pay attention to whether the line of business in the PT is an open line of business for investment or a closed line of business following the applicable investment procedures.

How to Register PT (Perseroan Terbatas) with Lets Move Indonesia

Don’t have time to take care of PT in Indonesia company registration? Don’t worry because Lets Move Indonesia is here to help you to handle laws and regulations to set up a company.

There are even special packages from Lets Move Indonesia that instantly simplify entire registration process, virtual office, and express KITAS.

With years of experience helping many expats with their company registry in Indonesia, Lets Move Indonesia is the right choice for you to conduct business in Indonesia.

Interested in this topic? Check out our other articles from Social Expat!

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Imelda is a content writer specializing in viral news and Indonesian culture. Her work revolves around researching and analyzing current events, social media trends, and popular culture.

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