Indonesia Local PT Company Set Up and Registration Services

Perseroan Terbatas (PT) is the term used to refer to a limited liability company. It is one of the most common business entities chosen by entrepreneurs and investors due to its flexibility and legal protection.

These are the types of PT company:

1. Open PT

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.

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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.

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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.

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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.

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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. You may check the details about our PMA Company Registration Services

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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).

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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:

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.

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:

1. Application for registering the LLC to the Notary
2. Deed of Establishment for the Notary
3. Company name (with at least three name options)
4. Complete biodata of the founders
5. Copies of official identity photos (3×4 size)
6. Copy of the land ownership certificate
7. Complete address of the PT company
8. Complete data of the Board of Directors and Commissioners
9. Copy of the permit for main office construction (IMB)
10. Copy of the company’s Land and Building (PBB) Tax/li>

Here are the steps on how to setting up a local PT company:

1. Decide a name for your company and provide 2 other alternative

InvestInAsia team will perform the company name checking at Indonesia Ministry database. We urge you to not waste to much time from the checking until confirming the registration as company names are no longer available for booking in advance.

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2. Drafting, Signing and Filing of the Deed of Establishment

Once the company name you want is available and confirmed, we will prepare a draft of Deed of Establishment. At this time, you can request for revisions if any.

Upon confirmation, we will schedule a signing and the signed documents will then be submitted to the Ministry of Commerce. This document should state all the details such as names and personal information of all company’s shareholders, directors and commissioners; company address; authorized and paid-up capital and the business activities.

Upon approval, you will have the Company Deed of Establishment and Letter of Approval by the Ministry issued.

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3. Tax Registration

All company documents that have been issued up to this step has to be submitted to the Tax Office for the issuance of the Company Tax ID card.

There is also an option for VAT Registration if your company expected annual revenue is above IDR 4,800,000,000. There are more requirements for the registration where we can offer you the service for an additional fee.

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4. Obtaining a Business Registration Number and Business License

A company can not run without a business license. While there are a lot of businesses that can be run automatically once we register for a Business Registration Number with the Investment Coordination Board, there are a few businesses which need more special permit, namely: restaurant, cosmetic wholesale, construction, mining and several others. You can consult us more on the business license details and how to get it.

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5. Opening Company Bank Account

As part of our Company Incorporation package, we can help you to prepare the necessary documents for you to open a bank account. The president director has to be present in the bank before your bank account can be approve and opened. Should the president director is a foreigner, some of the banks may require to have a valid work permit before approving of the bank account.

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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.