As the Indonesian government makes it easier for foreigners to open up their businesses in Indonesia, it’s high time to set up a local PT company in Indonesia! With the abundance of natural resources, labor force, easier regulations, and high spirits to welcome foreigners, it’s a no-brainer that more and more foreign investors are looking forward to establishing their businesses in the country. So, let’s see how to set up a PT company in Indonesia in this article.
What is a PT Company?
However, before foreign investors can set up a PT company in Indonesia, what does this type of company stand for? To put it simply, PT is the abbreviation of Perseroan Terbatas (PT) or a limited liability company in the Indonesian language.
As you might know, in this type of company, the company’s capital is divided into shares and the shareholders can have different levels of responsibility based on the number of shares they have.
In this regard, you might think that opening a PT company in Indonesia is similar to opening a PMA (Perusahaan Milik Asing) company. However, their differences outweigh the similarities. Whereas a PMA company is essentially a foreign-owned company in Indonesia, a PT company is commonly defined as a locally-owned company by native Indonesians.
However, it becomes surprisingly easier for foreign investors to open up their own PT companies, which makes PMA companies no longer the only way for them to establish their businesses in Indonesia.
Requirements for PT Company Registration for Foreign Investors
Although the entire registration process has become easier for foreign investors, they still need to understand and learn how to register a PT company in Indonesia for their businesses. They need to prepare the following for registration:
- Application for registering the LLC to the Notary
- Deed of Establishment for the Notary
- Company name (with at least three name options)
- Complete biodata of the founders
- Copies of official identity photos (3×4 size)
- Copy of the land ownership certificate
- Complete address of the PT company
- Complete data of the Board of Directors and Commissioners
- Copy of the permit for main office construction (IMB)
- Copy of the company’s Land and Building (PBB) Tax
Amount of Authorized Capital to Register a PT Company
Once foreign investors have prepared all of the requirements above, how much is the amount of authorized capital needed to set up a local PT company in Indonesia?
Well, the amount usually can vary, but the total capital can amount from IDR 50 million to IDR 10 billion. According to the Ministry of Investment of Indonesia, the total amount of authorized capital needed to set up a PT company can be categorized into the following:
- Small-sized: IDR 50 million – IDR 500 million
- Medium-sized: IDR 500 million – IDR 10 billion
- Large-sized: More than IDR 10 billion
One thing foreign investors need to remember when trying to set up a PT company in Indonesia is that they need to at least set up a medium-sized PT company with a minimum amount of authorized capital of IDR 1,1 billion if they want to employ foreigners as staff.
As employing foreigners as on-site staff can require more fiscal spending to support their livelihood in Indonesia, it is no wonder that foreign investors need to prepare an authorized capital of that amount to ensure that they fulfill all regulations and be able to support the lives of their foreign staff.
Also read: 6 Types of PT Companies in Indonesia
PT Company Registration
After preparing the requirements and the authorized capital, now foreign investors can register for a PT company in Indonesia. In general, these are the procedure on how to set up a PT company in Indonesia:
Ask for help from a trusted business solution and Notary
It will be best for foreign investors to ask for help from a local business solution and a trusted Notary to assist with the process of registration for a PT company. With their help, foreign investors can receive assistance from local experts on how to establish this kind of company.
Submission of application
All of the company’s founders or at least one of the authorized founders will have to submit the application for the company’s establishment to a Notary while also bringing all of the required documents. This is especially important so that the company can receive its Deed of Establishment.
The copying of the LLC statement
To ensure all of the company’s founders can receive the same access to the LLC statement, the Notary can make several copies of the statement for each founder to ensure that they have a full understanding of the LLC statement.
Issuance and stamping of the LLC statement
After the application is submitted, the Notary will need to issue and stamp the authentic Deed of Limited Liability Company Certificate that will then be submitted to the Ministry of Investment of Indonesia to ensure the company’s legal status.
Submission of the Deed of Establishment to the Ministry and the Ratification of the Deed
After the Deed is submitted to the ministry, it will take about 1 to 6 months to try to ratify the company’s legal status. Once ratified, the company will earn the status of a legal entity and will then be identified as an LLC (PT company).
That’s all information you need on how to set up a PT company in Indonesia. By asking the trusted business solution like InvestInAsia, foreign investors will no longer have problems in setting up a PT company in Indonesia as the extension of their businesses. Not only that, InvestinAsia also provides Indonesian business visa services for you.
So, what are you waiting for? Contact us now for further information!
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