Selection of a Company Name in Indonesia
The process of selecting a name for a company in Indonesia is one which contains many distinct but important steps. Before a company name of a company in Indonesia can be put into use, its founders must obtain the approval of the Indonesian Minister of Law and Human Rights. This holds true for all companies in the country, including those which are foreign-owned (PT PMA) as well as those which are owned by locals (PT). The founders of a company in Indonesia must have an approved company name before they may be allowed to complete the establishment process of the company. Before a name can be put into use, certain criteria and requirements must be fulfilled. There must be a proof of payment for the application fee which is to be paid for the use of the company name. Government Regulation No. 45 of 2014 regarding the Rates and Types of Non-Tax Revenue Applicable on the Ministry of Law and Human Rights has set such a fee at 200,000 rupiah per application. The payment must be applicable to one company name for which the founders request approval, the validity period of the paid fee will be 60 days as of the paid date, and the paid fee cannot be reimbursed by the founders. There must also be a statement about what name the founders plan to give to the company.
Once this matter has been handled, the next step is to put the name in place. When doing so, the owner of the company must follow Article 5 of Government Regulation No. 43 of 2011 regarding the Filing Procedures and Use of a Limited Liability Company Name. This article states that the proposed company name must fulfill certain requirements before it may receive official government approval. The company name must be able to be written in Roman letters. The name also cannot be the same or almost the same as another existing company name which is in current legal use by another company in Indonesia. It must also not violate general standards of decency and morality. It cannot be the same or similar to the name of any state bodies, government bodies, or international bodies unless the company has received official permission to use such a name. The name cannot be solely comprised of numbers; it must also be able to be spelled and pronounced. The name must not include official terms related to companies, legal entities, or civil partnership. The full name of an Indonesian company may not solely consist the primary purpose of the business, the business activities to be undertaken by the company, or both. Should the purpose of the business or the company’s business activities be a part of the company’s name, all mentions of the purpose or business activities are to be in accordance with the actual business purposes and business activities of the company.
How the Selection of a Company Name in Indonesia Relates to Company Incorporation
Company name selection is directly related to company incorporation. This is true anywhere in the world, including in Indonesia. A misleading name can have a negative effect upon business objectives and activities. Clients across Indonesia tend to reject companies with unsuitable or offensive terms which are used in the company’s name. Furthermore, an invalid name can lead to the delay of the incorporation of the company. Indonesia’s business laws ensure that all company names in the country adhere to the specified laws.
No matter what company name you plan to choose, if you are interested in starting a company to be based in Indonesia, we at Paul Hype Page & Co will be able to assist you. Our knowledgeable and skilled incorporation specialists will take you through every step of the process. We will also deal with any government-related issues that occur during the process on your behalf.