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Local Company (PT)

One of the most well-known company types in Indonesia is Local Company also known as PT. It’s commonly used by both local entrepreneurs and, in some occasions, foreign investors.

Depending on the type of business activities, certain business fields might have limitations or are closed for foreign ownerships. Furthermore, it is mandatory to fulfill a minimum investment of USD 800,000 to obtain a business license for PMA company. Therefore, you may consider establishing a local PT company which is allowed to conduct specific business activities and there is no obligation to spend USD 800,00 investment in Indonesia.

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Local PT (Perseroan Terbatas) Company is a limited liability company established under 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 separates it from other business entities, refer to our guide below to answer your questions!



Local PT Company Registration Process

Time req. ~60 Days

As shown below is the registration process for Local PT Company:



(working days)

1Application for company’s name at Indonesia’s Ministry of Law and Human Rights1
2Preparation of Article of Association from public notary3
3Approval of Deed of Establishment at Indonesia’s Ministry of Law and Human Rights3
4Acquisition of Certificate of Domicile from local government10
5Obtain Taxpayer Registration Number (NPWP)2
6Obtain Trading Business License (SIUP)10
7Obtain Company Registration Certificate (TDP)10

Organization Structure

To register a local PT company, it has to be 100% owned by Indonesian citizen. Hence, you will need a Local Nominee with notarized nominee agreement to protect the foreign entrepreneur’s ownership in the company. Local PT company is a great choice for foreign investors who wish to expand their business in Indonesia but is constrained by limited ownership for certain business areas. Thus, they can get a local nominee director to represent a partial ownership, but the foreign investors will get a full ownership.

The minimum requirements to establish a local PT company are as follows:

  • 2 Shareholders
  • 1 Director
  • 1 Commissioner

Size of Local PT Company

To set up a local PT company, the amount of paid up capital should be based on the size of your company:

  • Small : above IDR 50,000,000 – 500,000,000
  • Medium : above IDR 500,000,000 – 10,000,000,000
  • Large : above IDR 10,000,000,000

Note: To hire a foreign employee in local PT company, the required company size is medium with paid-in capital above IDR 1,100,000,000.

— Nayagam Zora

Another Successful Company setup with Employment pass.

Happy Client, Zora, HELIOCENTRIC 

Zora started her career in media production …