Issues which are related to company names affect everyone who owns or plans to own a business in Indonesia. One of the questions with which many company owners or prospective company owners grapple is that of the use of multiple company names and its legality for Indonesian businesses.

Can a Company be Run Under Multiple Names in Indonesia

Every company in Indonesia is required to be run under a name which has been approved by the relevant authorities. Certain laws and regulations govern the naming of companies in Indonesia. These laws and regulations must be enacted because without them, there is a distinct possibility that some might select names which would be detrimental not only to the company in question, but perhaps to the industry which the company inhabits and sometimes even the business scene of Indonesia as a whole.

Some people who plan to start a company of their own in Indonesia might have some questions as to whether their company can be run under more than one name. This is important because the selection of a company name is a vital part of the incorporation process. Save

 

Use of Multiple Company Names in Indonesia

When registering a company name in Indonesia, the name to be selected must be one which has been registered with the Ministry of Law and Human Rights. After the name to be used has been registered, no other company in Indonesia may use the name as its company name. Since the company will already have selected a name under which it is to be registered, no other name apart from the registered name may be used by the company. Therefore, it is not possible for a company in Indonesia to be run under multiple names at the same time because doing so would violate the existing laws related to company names.

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Other Information Regarding Company Names in Indonesia

There are also other facts related to the selection of company names in Indonesia which must be understood by all who plan to start a company there. Company names in Indonesia are to consist of at least three words. This rule is not strictly enforced; however, it is usually impossible to register a company name in Indonesia with a length of either one or two words. This is because all company names in Indonesia require an application to the Legal Entity Information System. The Legal Entity Information System will almost always reject all company names of one or two words. Thus, prospective company owners are advised to use company names of at least three words in order to avoid facing such a problem.

The language of the company name is to be determined based on the business entity which is being used. All companies owned by locals, whether they be sole proprietorships, partnerships, or locally-owned limited liability companies (PTs), are to have a company name in Indonesian. This law applies to all companies of any of the preceding business entities regardless of the industry which they inhabit, the location of the company, or the type of business activities to be conducted. On the other hand, foreign-owned limited liability companies (PT PMAs) may select a company name which may either be in Indonesian or in any other language of the company owner’s choice.

Should the company in question be a PT, the official name of the company is to have the abbreviation “PT” before its company name. Therefore, the complete official name of every PT in Indonesia must begin with “PT”. This complete name is to be mentioned in the company’s Articles of Association as well as in any of the licenses and permits for which it has applied. The abbreviation “PT” is not to be included as part of the three-word minimum which is required for the registration of a company name in Indonesia.

The selection of a company name is just one portion of the complete process of company incorporation in Indonesia. This process can sometimes become fairly complex and intricate. Fortunately for all prospective company owners in Indonesia, we at Paul Hype Page & Co provide services which greatly simplify this process. If you need any assistance with the incorporation of any company in Indonesia, contact us at any time; we will attend to your incorporation needs to the best of our abilities.