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PT Registration - Who is it for and what are the benefits
PT Registration, short for Perseroan Terbatas company registration, is specifically for businesses in Indonesia that wish to establish a limited liability company.
PT Registration is suitable for Indonesian entrepreneurs who want to establish a formal legal entity to conduct their business activities. It provides a structure that separates personal assets from business liabilities, offering limited liability protection.
A PT (Perseroan Terbatas) is a local company, designed for Indonesian citizens and therefore we would only recommend setting up this type of business if you are either Indonesian or have a trustworthy Indonesian partner. If you are a foreigner we would recommend setting up a PMA. To find out more about PMA Establishment, you may check our PT PMA Establishment Page here!
Additionally, there are some business entities that are only available to Indonesian Companies, therefore, even if you are a foreign company or individual, you may still need to set up a PT.
At LetsMoveIndonesia, we specialise in assisting businesses with PT company registration and provide comprehensive support throughout the process, helping you establish a strong legal foundation for your business in Indonesia.
LetsMoveIndonesia’s expert teams are located across Jakarta & Bali, ready to assist you completely with a hassle-free company registration process!
Steps to Register A Company in Indonesia
- Register the company name to the Notary. The name must contain 3 words
- The Notary will make a draft Deed of Establishment
- Decree Approval will be issued by the Ministry of Law & Human Rights
- Obtain a Tax ID
- Obtain the Registration Number (NIB/Nomor Induk Berusaha)
- Obtain the Business License through the Online Single Submission System
- Obtain the Commercial License (if applicable)
- Limited Liability Protection: One of the primary benefits of PT registration is limited liability protection. The shareholders’ liability is generally limited to the value of their subscribed shares, minimizing personal financial risk in the event of business debts or legal issues.
Benefits of Setting Up a PT Company in Indonesia
Separate Legal Entity: A PT is considered a separate legal entity from its shareholders. This distinction provides the company with the ability to enter into contracts, acquire assets, and engage in legal proceedings on its own behalf, separate from its owners.
Investor Attraction: PT registration can enhance your business’s credibility and attract potential investors. Many investors prefer to invest in formal legal entities that offer limited liability protection and clear corporate governance structures.
Access to Local Market: Registering as a PT enables you to access the vast Indonesian market. It demonstrates your commitment to complying with local regulations and building trust among local customers, suppliers, and partners.
Perpetual Existence: A PT has perpetual existence, meaning it continues to exist regardless of changes in its ownership structure or the death of shareholders. This ensures continuity and stability for long-term business operations and future succession planning.
Ability to Hire Employees: As a registered PT, you can legally hire employees in Indonesia, allowing you to expand your workforce and scale your business operations as needed.
Financing Opportunities: PT registration opens doors to various financing opportunities, such as accessing bank loans, attracting investment, and issuing shares or bonds to raise capital for business growth and expansion.
Professional Image: Registering as a PT enhances your professional image and instils confidence in potential clients and business partners. It demonstrates that you are committed to operating according to Indonesia’s formal and legally compliant manner.
Minimum Requirements to Register a PT in Indonesia
- 2 Local Shareholders
- 1 Local Director
- 1 Local Commissioner
Additionally, there are 3 different-sized companies you can establish in Indonesia, and each of them requires a different amount of investment/paid-in capital.
- 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
Please note that if you want to employ foreigners in a PT, the company size must be at least Medium-sized with a paid-in capital above IDR 1.100.000.000.
Please note, that if you want to employ foreigners, in a PT, the company size must be at least Medium with a paid in capital above IDR 1.100.000.000.
Document Requirements to Setup a PT Company in Indonesia
1. Minimum 2 shareholders
2. Identity and contact details of Company Shareholders:
– For Indonesian Individuals, KTP and NPWP
– For Indonesian Companies, copy of Article of Establishment and the amendments and the Approval from the Ministry of Law and Human Right, Domicile Letter, Tax Id, Business License, Company Registration Certificate (TDP/NIB)
3. Identity and contact details of Company Directors and Commissioner:
– For Indonesian individuals, KTP, NPWP, email and phone number.
– For Foreign Individuals, valid passport, email and phone number.
4. Original Domicile from building management
5. Copy of Lease Agreement between company and building management
Be at Ease With Company Registration Indonesia Package at LetsMoveIndonesia
To make your life simpler, LetsMoveIndonesia offers fully serviced packages to get your business off the ground. The High Flyer Package includes PT Establishment, a virtual office and an express KITAS! To find out more details about The High Flyer Package, click here!
Want to know more about setting up a business in Indonesia? Then check out our useful guides!
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