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 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 advance about everything related to PT.
What is a PT?
PT, short for Perseroan Terbatas, is a business entity established based on an agreement. Perseroan Terbatas (PT) is the term used to refer to a limited liability company.
PT is designed for Indonesians. Therefore, it is recommended that you establish a PT with your Indonesian partner. If you want to set up your own company, we recommend setting up a PT PMA (Penanaman Modal Asing).
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 legalized by the Ministry of Law and Human Rights.
How to start with company registration in Indonesia
To set up a PT company, there must be a Deed of Establishment that must be completed 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 (authorized 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 utilization of dividends and company profits
Obstacles of the company registration process
There are some of the obstacles that often occur when establishing Perseroan Terbatas.
1. Capital
Not knowing the amount of authorized 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.
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 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 LetsMoveIndonesia that make it easier for you and your Indonesian partners to register your company.
5. Time
To establish a company known as PT, 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 LetsMoveIndonesia 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 LetsMoveIndonesia
Don’t have time to take care of Indonesia company registration? Don’t worry because LetsMoveIndonesia is here to help you to set up a company.
There are even special packages from LetsMoveIndonesia that instantly simplify entire registration process, virtual office, and express KITAS.
With years of experience helping many expats with their company registry in Indonesia, LetsMoveIndonesia is the right choice for you to conduct business in Indonesia.
