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LOCAL COMPANY (PT)

How to Establish a PT Company in Indonesia?
LOCAL COMPANY PT

Are you planning to start a business in Indonesia? Then you will want to know about how to establish a Local Company PT in Indonesia. What is Local Company PT, you might ask? PT is the abbreviation of Perseroan Terbatas, a limited liability company whose capital is divided into shares and the responsibility of shareholders based on the number of shares that he or she has.

Fortunately, since the beginning of 2016, the procedure of establishing a PT company has been continuously simplified. And this is how you can establish a PT company in Indonesia!

Sizes of Local  Company PT

After understanding what is PT company, you should also know that establishing a PT company in Indonesia needs some amount of money as your business capital. The amount is varied, but usually, it starts from IDR 50 million to more than IDR 10 billion.

Based on this amount of capital, PT company in Indonesia is categorized into three sizes:

  1. Small : above IDR50 million to IDR500 million
  2. Medium: above IDR500 million – 10 billion
  3. Large : above IDR10 billion

Important things to prepare

There are several important things you need to prepare if you want to establish a PT company in Indonesia. First thing first, you need to set the framework of the Articles of Association of the Limited Liability Company as the main data. You also need to make the deed of the establishment to the Notary, which include:

Company name (prepare at least three name options)
Complete data name of the company’s founders
The amount of the authorized capital of the company
Place and company position and complete address
Data of Board of Directors and Commissioners
Purpose and objectives of the company
Shareholder data and amount of issued and paid-up capital
The TAX ID Number of the Board of Directors and Commissioners
The identity card of the company’s founders
Power of Attorney if the establishment of the company is to be authorized

Procedures for establishing a PT Company in Indonesia

Setting up a company in Indonesia requires several procedures to follow, which include:

All founders, or one of the authorized founders, must submit the application for the establishment of a Limited Liability Company to the Notary by bringing the completeness of the Company’s articles of association and the requirements required for the Deed of Establishment and Limited Liability Company.
The Notary will make minutes of copies of the same limited company statement with a deed of incorporation to be signed by the founders.
If there is a mistake in writing, founders or the power of attorney is allowed to make corrections.
After the minutes or copies of the Company’s articles of association have been signed and submitted to the Notary, an Authentic Deed of Limited Liability Company Certificate will be issued, signed, and stamped by the Notary.
As evidence of the company’s establishment, the deed of the establishment must include written day, date, month, and year.
The Notary will submit the Deed of Establishment containing the articles of association of a limited liability company to the Minister to obtain the legalization as a Legal Entity.
After the issuance of the Decree of the Minister of Law and Human Rights of the Republic of Indonesia, the Limited Liability Company will obtain status as a Legal Entity.
Once the Deed of Establishment and Ratification of the Company’s Articles of Association is completed, your business has been established in the form of the Limited Liability Company (PT).

Now you know what is PT company and how to establish one in Indonesia. If you would like our help to set up your own PT company, get in touch.

Requirements :
  1. Rent agreement
  2. Land certificate
  3. Receipt of payment building and land tax the last 3 months (PBB)
  4. Building permit (IMB)
  5. Copy ID and tax register number of local shareholder ( 2 persons)
  6. Indonesia address of each investor
  7. Company name and company address
  8. Line of business (phone & fax)
  9. A numbers investment
  10. Share capital for each investor (total capital min. IDR 2.000.000.000 and issued capital min. IDR 1.500.000.000 to get working ITAS)
  11. Position of each investor in company
Processing:

Step 1 –   Approval of Company Name. It should consist of three words that are not vulgar or obscene.

Step 2 –   Deed of Incorporation. It should include an Article of Association, and a notary must be present.

Step 3 –   Approval of Legal Entity. After submission of Deed of Incorporation by the notary, the Ministry of Law and Human Rights will give approval.

Step 4 –   Registration of Tax ID (NPWP). A valid NPWP is required for securing other company’s licenses, banking activities, and fulfilling tax obligations.

Step 5 –   Domicile Letter. Required to show the location of your business.

Step 6 –   Application of NIB. Alongside NIB, Business License(s) and Location Permit will also be granted one day following the registration via Online Single Submision (OSS).

Step 7 –   Application of Other Licenses. Depending on the business sector, additional licenses such as commercial license and tourism license may be required before operation.

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