Selecting an appropriate company name is a vital part of establishing a business in Indonesia. But it’s not as simple as picking a catchy phrase. Indonesia enforces strict regulations that govern company names to ensure legal compliance, cultural sensitivity, and business clarity.
This guide breaks down everything you need to know—from legal rules to practical tips—so you can secure a valid name without delays.
Also read: 12 Pro Tips for Choosing Your Company Name
What the Law Says About Company Names
The rules for naming companies in Indonesia are primarily governed by Law No. 40 of 2007 on Limited Liability Companies and Government Regulation No. 43 of 2011. These laws define how companies must structure their names, what’s allowed, and what’s prohibited.
Every company is required to begin its name with the prefix “PT” (Perseroan Terbatas). This signifies the legal status of the business. However, the name itself must contain a minimum of three words, not including “PT.” Applications that fail to meet this rule are rejected.
Language and Format Requirements
By Ownership Type:
- PT PMDN (Local companies) must use Bahasa Indonesia.
- Foreign-owned entities (PT PMA) are permitted to use English or other foreign languages in their company names.
All names must be written in Latin script. Names using Chinese, Arabic, Cyrillic, or other alphabets are not allowed.
Key Naming Restrictions You Must Follow
To ensure public order and prevent confusion, the government has outlined several naming restrictions:
- Uniqueness: Company names must be distinct and must not closely resemble existing names in spelling or pronunciation.
- No government affiliation: Terms resembling ministries or public institutions are forbidden unless approved.
- No vulgarity: Words that offend religious or social norms will be rejected.
- No entity-type terms: Terms like “Ltd,” “Inc,” “GmbH,” or “Association” are not allowed.
- No standalone numbers or abbreviations: “PT 123” or “PT ABC” is not acceptable.
The name must accurately represent the company’s business activities; for instance, a trading business cannot use the term “tourism” in its name unless supported by the corresponding KBLI classification.
How to Apply for a Company Name
Applications are processed via the AHU Online System (https://ahu.go.id), managed by the Ministry of Law and Human Rights.
Key Steps:
- Submit the proposed name online.
- System checks for name duplication.
- Once approved, the company name is held in reservation for a period of 60 days.
- During this time, finalize your company deed and legal entity status.
If the process isn’t completed in 60 days, the reservation expires.
What Happens if You Break the Rules?
Proposing a non-compliant name leads to rejection and delays. In some cases, you may need to restart the entire registration process, which can affect your business timeline and incur extra legal fees.
Changing a company name after registration is also complex. It involves approvals from:
- Ministry of Law and Human Rights
- Local tax office
- BKPM (Investment Coordinating Board)
The process includes new tax cards and document updates across agencies.
Tips to Choose the Right Name
- Use full words, not just initials.
- Add unique brand identifiers to avoid duplication.
- Consider trademarking your brand name separately if you need a two-word international brand but still want to meet the three-word naming requirement.
- Use abbreviations or acronyms (e.g., PT KAI) only if they represent full words from your official name.
Why It Matters for Foreign Investors
For PT PMA (foreign-owned companies), naming is tied to broader investment compliance. You must also meet minimum capital requirements (IDR 10 billion) and align your name with relevant KBLI codes. Errors in naming can delay the entire establishment process, especially if you’re targeting a competitive sector or foreign licensing.
How InvestinAsia Can Help
Understanding Indonesian regulations can be overwhelming—especially if you’re navigating it from overseas. That’s where InvestinAsia’s Indonesia Company Registration Services come in.
With a deep understanding of AHU Online, BKPM requirements, and naming protocols, InvestinAsia:
- Ensures your company name meets all legal criteria
- Conducts name availability checks
- Manages end-to-end registration
- Helps align your company name with KBLI codes
- Minimizes registration risks and delays
Whether you’re launching a startup or a foreign entity, InvestinAsia helps you get started the right way—legally and efficiently.
We also offer:
- Foreign company / PMA registration in Indonesia
- Indonesia representative office registration
- PT PMDN Set Up
- Virtual office setup in Indonesia
- Business registration number in Indonesia
- Indonesian Business Licenses
- Indonesia Trademark Registration
- Indonesia Tax Consultant and Compliance Services
Our end-to-end guidance helps you capture the full value of Indonesia’s investment incentives—seamlessly and on time.
If you are interested in starting a business in Indonesia, you can start by contacting us for FREE consultation.
Naming your company in Indonesia isn’t just about branding—it’s a legal obligation. From minimum word counts to naming restrictions, every rule exists to create a fair and transparent business environment. Whether you’re a local entrepreneur or a global investor, aligning your company name with the law is the first step to legitimacy.
Let InvestinAsia take the guesswork out of the process so you can focus on growing your business.
Frequently Asked Questions (FAQs)
What is the minimum word requirement for a company name in Indonesia?
The name must consist of at least three words, excluding the “PT” prefix.
Can I use English in my company name?
Yes, but only for foreign-owned companies (PT PMA).
What happens if my proposed name is rejected?
You must submit a new name and reinitiate the process, causing potential delays.
Can I use numbers in my company name?
No. Names like “PT 123” or “PT A1B2” are not allowed.
How long is the name reservation valid?
The reservation for an approved name remains valid for 60 days within the AHU Online system.
Can I operate under a brand different from my legal name?
Yes, but you must register that brand separately, typically via a trademark.
References:
Hukum Online. Aturan Pemberian Nama PT di Indonesia. Retrieved from https://www.hukumonline.com/klinik/a/nama-pt-di-indonesia-lt660506ba59938/.
Indonesian Chamber of Commerce and Industry. Deed of Establishment of PT Must be Registered at BNRI. Retrieved from https://kadin.id/en/analisa/akta-pendirian-pt-harus-terdaftar-di-bnri/.
