Local-Owned Company in Indonesia (PT)
Overview
Business Hub Asia is ready to help you establish a business entity in the form of a PT (Perseroan Terbatas/ Limited Liability Company) legally and officially in Indonesia, from the preparation of deeds to the issuance of NIB (Nomor Induk Berusaha) and NPWP/ Taxpayer Identification Number (Nomor Pokok Wajib Pajak), in one integrated and transparent flow.
PT is one of the most common and well-known types of companies in Indonesia. Compared to a PT PMA (Perseroan Terbatas Penanaman Modal Asing) , a local company like PT requires a much lower paid-up capital, however, PT can only be registered by Indonesian citizens and Indonesian legal entities who are allowed to hold shares as registered shareholders.
Get Expert HelpKey Features
Legal Establishment
Processing of all PT establishment documents, including notarial deed, SK Kemenkumham, NIB, and NPWP.
Integrated and Online Process
Most processes are digitized and integrated with the OSS-RBA (Online Single Submission Risk-Based Approach).
Name and Business Activity Consultation
Assistance in determining the appropriate company name and KBLI classification.
Fast & Transparent Legality
Clear time estimation, notification at every stage, and no hidden fees.
Assisted by an Expert Team
Professional legal consultants are ready to assist throughout the establishment process.
Minimum Requirements
Shareholders
Minimum 2 founders (Indonesian citizens) as shareholders
Minimum Capital
Business domicile address in Indonesia (can be a virtual office)
Registered Address
Authorized capital as required (usually starts from IDR 50 million)
Founders’ Documents
KTP & NPWP of the founders
Company Name
An authentic company name that is approved by the Ministry of Law & Human Rights.
Process and Timeline
1
Structure Consultation & Document Verification
Determine ownership structure, line of business (KBLI), and review the completeness of identity documents of shareholders & directors. Estimated 1-2 working days
2
Company Name Registration
The procedure for registering a company name involves submitting the name through the Ministry of Law and Human Rights online system. Estimated 1-2 working days.
3
Preparation of Deed of Establishment by Notary
The notary drafts the articles of association, company structure, and shareholder data. The deed of establishment includes the company name, address, business purpose, capital, and ownership. Estimated 2 working days.
4
Ministry of Law and Human Rights Decree Endorsement
Submit the deed to the Ministry of Law and Human Rights (Kemenkumham) to obtain official legal entity status. Estimated 5-7 working days.
5
Company NPWP & SKT Registration
The company registers its NPWP and Registered Certificate (SKT) at the Tax Office according to the company’s domicile.
6
License Application and NIB Registration through OSS-RBA
Obtain business licenses and NIB through the online OSS-RBA system by submitting documents like a business plan, establishment deed, and proof of capital deposit. BKPM will review applications within 10-15 working days.
7
Company Bank Account Opening and Capital Deposit
Open an account in the name of the company to deposit initial capital by including documents of the deed of establishment, NPWP, and SIUP. Investors deposit capital following the value stated in the deed (minimum deposit IDR 50 million). Estimated 1 working day.
8
Initial LKPM Reporting & Operational Preparation
Submits an initial Investment Activity Report (LKPM) to BKPM and prepares operational activities as licensed. Estimated 1 working day.
*The total estimated time is around 3 - 5 weeks
Important Consideration
- You should prepare several company names as options, so that we can verify it via the regulators.
- Please consult your potential business address with us before actually leasing or purchasing it to set up your company. The reason is that a company can only be established in certain zones permitted for commercial activities (certain companies allow a virtual office address).
- The KBLI selected will determine if any additional licenses are required.
- A company operating certain types of businesses may require additional licenses issued by relevant ministries/technical agencies.
- Post-establishment company data changes (address, board) require mandatory reporting and re-registration according to regulations.
Frequently Asked Questions
What is a Local PT?
Local company or Perseroan Terbatas (PT) is an Indonesian legal entity that allows businesses to operate legally with a separation between the company’s and the owner’s assets. Establishing a PT requires at least two Indonesian shareholders, a notarial deed, a registered office address, a Tax Identification Number (NPWP), and authorized capital as stipulated by the Indonesian Standard Industrial Classification (KBLI).
Can Business Hub Asia help you register a company name and open a business account?
Yes, of course we can handle it.
Company name registration is included in the process of creating a local company in Indonesia. All you have to do is provide a selection of business names.
We also help open a business company bank accounts as well as complete legalities and initial business reports.
What are the advantages of creating a PT over a CV in Indonesia?
A Perseroan Terbatas (PT) provides a distinct advantage by shielding personal assets due to the legal distinction between the owner’s finances and the company’s. Its formal framework, including directors, commissioners, and shareholders, also lends it a more professional image for business dealings. While establishing a PT is a more intricate and expensive undertaking, it is a suitable structure for businesses focused on developing a reputable standing and planning for future growth.
Is there a time limit for establishing a company?
A local company in Indonesia may have a lifetime status, and its deed of establishment, once authorized by the Minister of Law and Human Rights, remains valid as long as the company has not been dissolved.
Are there specific regulations regarding the creation of company names in Indonesia?
The company name must comply with the provisions stipulated by the Ministry of Law and Human Rights, including:
- Written in Latin letters;
- Has not been legally used by another company or is not substantially the same as the name of another company;
- Does not conflict with public order and/or decency;
- Does not own similarity or semblance to the name of a state institution, government institution, or international institution, unless authorized by the institution concerned;
- Does not consist of numbers or series of numbers, letters or series of letters that do not form a word;
- Does not have the meaning of a company, legal entity, or civil partnership.
What are the other functions of NIB?
A Business Identification Number (NIB), which also functions as a Company Registration Certificate (TDP), Importer Identification Number (API), and customs access.
Does Business Hub Asia also assist with opening a physical office?
Yes. We assist with office domicile search, virtual office services, and zoning compliance consultation if required.
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