Many people who are interested in starting a company in Indonesia choose to set up a PT. This business entity is a viable option because of the relatively few barriers with regard to its setup. As long as all the incorporation criteria are fulfilled, one can easily own and run such a company.
One of the most well-known company types in Indonesia is the local company, which is also known as a PT. It is commonly used by local entrepreneurs but may also be used by foreign investors.
Many business owners in Indonesia choose to establish a PT because owners of a PT are allowed to conduct any business activity of their choice. There is also no obligation to produce a large initial capital investment. On the other hand, those who own a foreign company (PMA) might not be legally permitted to conduct certain business activities. They must also produce a large initial minimum investment.
Information about PTs
A local PT (Perseroan Terbatas) company is a limited liability company established according to the laws of Indonesia. In a local PT, only Indonesian citizens and Indonesian legal entities are allowed to hold shares as registered shareholders. Local PT companies have several features that separate them from other business entities.
Local PT Company Registration Process
(Total time required: approximately 39 days)
The following is the registration process for a local PT company:
Duration (working days)
Application for company’s name at Indonesia’s Ministry of Law and Human Rights
Preparation of Article of Association from public notary
Approval of Deed of Establishment at Indonesia’s Ministry of Law and Human Rights
Acquisition of Certificate of Domicile from local government
Obtaining of Taxpayer Registration Number (NPWP)
Obtaining of Trading Business License (SIUP)
Obtaining of Company Registration Certificate (TDP)