PT Perorangan is a simplified business entity designed for individual entrepreneurs in Indonesia. It allows small business owners to establish a legal company with fewer administrative requirements compared to a standard PT (Limited Liability Company).
While it offers easier registration and lower costs, PT Perorangan also comes with certain limitations, such as restrictions on ownership, funding, and scalability. Understanding these benefits and drawbacks is essential before deciding whether PT Perorangan suits your business goals.
What Is PT Perorangan?
PT Perorangan (Individual Limited Liability Company) is a unique business structure in Indonesia created under the Job Creation Law. It allows one Indonesian citizen to establish a limited liability company without requiring multiple shareholders. This makes it especially attractive for micro and small enterprises (UMKM) that want corporate legal protection without heavy administrative burdens.
Legal Framework and Eligibility
The foundation of PT Perorangan is regulated by Law No. 6 of 2023, Government Regulation No. 8 of 2021, and Ministerial Regulation No. 21 of 2021.
- Citizenship: Only Indonesian citizens aged 17 and above may establish PT Perorangan.
- Business Scale: Limited to micro and small businesses.
- Micro: Capital ≤ Rp 1 billion, revenue ≤ Rp 2 billion.
- Small: Capital Rp 1–5 billion, revenue Rp 2–15 billion.
- Limitation: One individual can only establish one PT Perorangan per year.
Foreigners cannot set up PT Perorangan. If you are a foreign investor, the legal pathway is PT PMA (foreign-owned company) or a representative office. (check the complete article: Can a PT Perorangan Be Established by a Foreign Citizen?)
Capital and Liability Structure
Unlike regular PTs that require at least Rp 50 million in capital, PT Perorangan provides full flexibility. Founders decide their own base capital and must deposit at least 25% within 60 days of establishment. The main advantage lies in limited liability, meaning your personal assets remain protected from business debts.
How to Establish PT Perorangan
The process is fully online through the OSS (Online Single Submission) system:
- Register an account at oss.go.id.
- Select the UMK (micro/small enterprise) category.
- Fill in your business details and submit documents such as ID (KTP), NPWP, business address, and capital statement.
- Obtain your Business Identification Number (NIB) automatically.
A key benefit: no notarial deed is required, significantly reducing costs.
Also read: Challenges in Completing OSS for Foreign Investors
Tax Benefits and Incentives
PT Perorangan offers attractive fiscal incentives:
- Final Income Tax 0.5%: For annual turnover under Rp 4.8 billion, valid for 4 years.
- Tax-Free Threshold: Revenue under Rp 500 million is fully exempt.
- Reduced Corporate Tax: After 4 years, enjoy a 50% discount on standard corporate tax rates.
Also read: How to Leverage Tax Incentives to Lower Investment Costs in Indonesia
Business Scope and Growth Path
PT Perorangan can engage in almost any sector, including e-commerce, consulting, IT, and even high-risk industries like pharmaceuticals, provided it remains within UMKM classification.
However, once the business grows beyond these thresholds or adds new shareholders, it must convert into a regular PT. The conversion requires a notarial deed, additional shareholders, and updated registration.
Advantages and Limitations
Advantages:
- Fast and fully online setup.
- Affordable and flexible capital requirements.
- Professional credibility with “PT” status.
- Limited liability for owners.
Limitations:
- Restricted to Indonesian citizens.
- Limited to small-scale businesses.
- Cannot attract foreign investors or multiple shareholders.
Also read: Starting a Small Business in Indonesia for Foreigners: A Complete Guide
Alternatives for Foreign Investors
Since PT Perorangan is not available to foreign nationals, InvestinAsia can assist you with the best alternatives, including:
- PT PMA Registration Indonesia: Full foreign ownership structure.
- Representative Office Setup in Indonesia: Establish a market presence without full incorporation.
- Local PT PMDN Setup in Indonesia: For Indonesian-controlled businesses.
At InvestinAsia, we help you choose the right entity, handle documentation, and ensure compliance with Indonesian regulations. Our team has guided numerous foreign entrepreneurs to successfully establish their businesses in Indonesia.
Learn more about InvestinAsia’s company registration services.
You can also enjoy special package prices for PT PMA and KITAS services.
Contact us now for a FREE consultation and start your journey with confidence.
FAQs
Can foreigners establish a PT Perorangan?
No, PT Perorangan is strictly for Indonesian citizens. Foreigners must set up a PT PMA or representative office.
What is the minimum capital for PT Perorangan?
There is no fixed minimum, but at least 25% of declared capital must be deposited.
Do I need a notary to establish PT Perorangan?
No, the process is entirely digital and does not require notarial deeds.
What taxes apply to PT Perorangan?
0.5% final income tax for up to 4 years, exemptions under Rp 500 million, and later a 50% corporate tax discount.
When must PT Perorangan convert into a regular PT?
If the company grows beyond UMKM criteria or adds additional shareholders.
