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:
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
Do you have planning to set up local company with nominee shareholders and you want to know about how to establish a Local Company (PT) in Indonesia?
Requirements to set up Local Company (PT)
- Company name (three words in Bahasa Indonesia)
- Copy identity card (KTP) and tax register number (NPWP)
- A numbers of investment (If you want to hire a foreign employee in a local company (PT), your company size should medium size and we suggest with an authorized capital of above IDR 1 billion
- Position of each shareholders in company.
- Total share capital for each shareholders.
- Business classification or business activities details.
- Rent agreement or land certificate for the office address. (If you don’t have office address yet, you can use Virtual Office address for the first year).
Steps to register Local Company (PT)
- Approval of Company Name.
It should consist of three words that are not vulgar or obscene. - Deed of Incorporation.
It should include an Article of Association, and a notary must be present. - Approval of Legal Entity.
After submission of Deed of Incorporation by the notary, the Ministry of Law and Human Rights will give approval. - Registration of Tax ID (NPWP).
A valid NPWP is required for securing other company’s licenses, banking activities, and fulfilling tax obligations.
- Application of NIB.
NIB (Business License) will registration via Online Single Submision (OSS).
Obligation for Local Company (PT)
Local Company (PT) is also has same obligated with Foreign Owned Limited Liability Company (PT PMA) to do :
- Tax Report
For the first 3 years, your company tax rate is 0.5% from the total revenue and your revenue is less than IDR 4.8 Billion per year. If your revenue exceeds IDR 4.8 Billion or after 3 years, your company tax rate will be 11% of the net profit. - Report Investment Activities (LKPM)
LKPM is a report comprising information about the results in the company’s investments and concerns raised by the investors that reported periodically to the government. The LKPM report is submitted quarterly, every 3 months, detailing all investments made during that period.
How the payment Work
Payment can be done after we successfully submit documents to immigration we will send the proof and invoice, Our accepted payment methods are Wise, Credit Card, Revolut, and Western Union, Word Remit and other
PayPal
are not accepted due to delays and high fees and also Government has been block before and we closed already the account then you can used Xoom.com from paypal
International Bank Transfer
Will be take 3-4 Working days to arrive in our bank account and Please make sure the amount of money we will receive must match the amount on the invoice.
Wise.com
To make your payment process faster, please use our email address as the Wise Recipient: info@balivisasagency.com
Revolut
To make your payment process faster, please create link transfer from revolut use our email address as the Recipient: info@balivisasagency.com then we will clime here.
Credit Card payments
Send us a confirmation to receive the payment link. This method incurs an additional 2.5% charge.
Western Union
This Must be send to the personal details and on this we can't Pick up cash due to over limit already then you need deposit to the personal bank account
