Are you a foreigner looking to establish a PT (Perseroan Terbatas) company in Indonesia Congratulations on taking a step toward expanding your business horizons! Indonesia offers promising opportunities for foreign entrepreneurs, but navigating the process of setting up a PT company can seem daunting.
Fret not, as this comprehensive guide will walk you through what is PT in Indonesia, the types of PT, the necessary setup requirements, estimated registration costs, and everything else you need to know. Get ready to embark on your entrepreneurial journey in Indonesia and unlock the potential for success.
What is PT Company in Indonesia?
First, you need to learn about PT meaning in Indonesia.
PT stands for “Perseroan Terbatas,” which is a type of limited liability company where the capital is divided into shares, and the shareholders’ responsibility is determined by the number of shares they hold.
It is one of the most common business entities chosen by entrepreneurs and investors in Indonesia due to its flexibility and legal protection.
PT companies have separate legal identities from their owners, which means that shareholders are not personally liable for the company’s debts and obligations. It is important to note that all Limited Liability Companies (PT) in Indonesia are required to include “PT” as a prefix in their company names. Additionally, if a company is publicly listed, it should also add “TBK” at the end of its entity name.
Also read: Limited Liability Company (LLC): Definition and Characteristics
Types of PT
The next step after understanding what PT mean in Indonesia, learn about the types of PT company in Indonesia.
1. Open PT
What is an open PT meaning in Indonesia? It is a type of company that allows its shares to be publicly traded on the stock exchange. This implies that the company’s shares are open to trading among the general public, allowing for buying and selling activities. Open PT companies are subject to additional regulations and requirements compared to other types of PT.
2. Closed PT
A closed PT, on the other hand, is not publicly traded. The shares of a closed PT are held by a limited number of shareholders, usually family members, friends, or business partners. This type of PT is commonly used by small and medium-sized businesses.
3. Domestic PT (PT PMDN)
A domestic PT, also known as PT Penanaman Modal Dalam Negeri (PT PMDN), is a PT company that is fully owned by Indonesian individuals or entities. PT PMDN companies are subject to specific regulations that promote domestic ownership and participation in certain business sectors. If you’re interested in establishing your own PT PMDN in Indonesia, now is the perfect time to take action. Set up PT company Indonesia today and navigate the regulations with ease.
4. Individual PT
An individual PT is a type of PT company that is owned and managed by a single individual. It is suitable for entrepreneurs who want to start a business on their own and maintain full control over their company.
5. Foreign PT (PT PMA)
A foreign PT, also known as PT Penanaman Modal Asing (PT PMA), is a PT company that is owned by foreign individuals or entities. PT PMA companies are subject to additional regulations and requirements compared to domestic PT companies, as they involve foreign ownership and investment.
If you’re a foreign entrepreneur seeking to establish a PT PMA company in Indonesia, seize this opportunity to tap into the vibrant Indonesian market. Set up PMA Company in Indonesia today and navigate the regulations seamlessly.
6. General Public PT
A general public PT is a type of PT company that is established with the intention of raising capital from the public through an initial public offering (IPO). The shares of a general public PT are listed on the stock exchange and can be purchased by any interested investor.
Also read: The Types of Companies in Indonesia: 2023 Complete Guide
Requirements for Perseroan Terbatas
Besides wanting to know what does PT mean in Indonesia, you might have questions on how to set up a PT company in Indonesia? Make sure to understand the requirement. To establish a PT company in Indonesia, there are several requirements that need to be fulfilled. These requirements include:
- A minimum of two shareholders, who can be individuals or entities.
- A minimum authorized capital of IDR 50 million for local company and IDR 10 billion for foreign company.
- A local Indonesian director.
- A registered office address in Indonesia.
- Obtaining a taxpayer identification number (NPWP).
Also read: Corporate and Company Structure in Indonesia
How to Set Up a PT Company In Indonesia
After knowing what does PT mean in Indonesia, know we’ll discuss about setting up a PT (Perseroan Terbatas) company.
1. Choose a company name
Select a unique name for your PT company and check its availability with the Ministry of Law and Human Rights.
2. Prepare the necessary documents
Gather the required documents, such as identification documents of shareholders and directors, articles of association, and other supporting documents.
3. Obtain a Deed of Establishment
Engage a notary to prepare and issue the Deed of Establishment, which contains important information about the company and its shareholders.
Also read: What is a Holding Company and How It Works?
4. Register the company
Submit the necessary documents to the Ministry of Law and Human Rights and pay the registration fees. The registration process typically takes around 2-3 weeks.
5. Obtain a taxpayer identification number (NPWP)
Apply for an NPWP for your company at the tax office.
Enroll your employees in social security programs, such as the BPJS Ketenagakerjaan (workers’ social security) and BPJS Kesehatan (healthcare).
7. Acquire necessary licenses and permits
Depending on your business activities, you may need to obtain specific licenses and permits from relevant government agencies.
Also read: Private Limited Company: Definition, Benefits, Example
8. Open a bank account
Open a corporate bank account in Indonesia for your PT company.
9. Fulfill annual reporting requirements
Comply with the annual reporting requirements, such as filing annual financial statements and holding annual general meetings.
It’s important to note that the process and requirements may vary depending on the specific circumstances and business activities. Seeking professional advice or assistance from a reputable service provider for business registration Indonesia can help ensure a smooth and successful PT company set up in Indonesia.
For a simpler PT company set up in Indonesia, you can chat us for FREE consultation.
Also read: How to Register a Company in Indonesia: Guide for Foreigner
Other things to know about Perseroan Terbatas (PT)
After knowing what is PT in Indonesia means, you need to know several FAQs below:
How much does it cost to register a PT in Indonesia?
The registration cost for PT (Limited Liability Company) in Indonesia varies depending on the capital, location, and required services. It includes notary and government fees. The registration fees for PT range from millions to tens of millions of Indonesian Rupiah. However, it is advisable to consult experts for accurate estimates.
What is the difference between CV and PT in Indonesia?
The difference between CV (Commanditaire Vennootschap) and PT in Indonesia is as follows: PT is a limited liability company, while CV is a partnership. PT requires a minimum of two shareholders, whereas CV does not have this requirement. PT has formal management structures, while CV is more flexible in this regard. PT also has specific capital requirements, whereas CV does not. Furthermore, PT has stricter financial reporting regulations. It is important to consider the business needs to make the right choice between the two options.
Also read: How to Set Up a PT Company in Indonesia: Guide for Foreigner
That are an explanation about what is PT in Indonesia. It’s important to consider your specific business needs and consult with legal and business experts to determine whether a PT or CV is the most suitable option for your business in Indonesia.
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