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