How to Secure Your Company Name in Indonesia?
Before a company name of a limited liability company may be used in Indonesia, for both a foreign investment company (PT PMA) and a local company (PT), the founders must obtain approval from the Minister of Law and Human Rights of Indonesia (MOLHR).
Without the approval of the company name, the founders cannot begin the company establishment process. In Indonesia, the usage of a company name is subject to such limitations which are governed under Indonesian Law No. 40 of 2007 (Company Law) and its accompanying regulations.

Why is Company Name Approval Mandatory Before Incorporation in Indonesia?
Company name approval in Indonesia is a legal requirement designed to protect corporate identity, ensure regulatory compliance, and establish legal certainty before the Deed of Establishment is executed.
- Under the Indonesian incorporation framework, a proposed company name must be reviewed and approved before it can be formally adopted in the Akta Pendirian.
- The requirement is administered through the Directorate General of General Legal Administration under the Ministry of Law and Human Rights, which verifies name availability through the Legal Entity Information System.
Key reasons for mandatory company name approval in Indonesia include:
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Preventing Name Duplication
The Directorate General of General Legal Administration conducts an electronic verification to confirm that the proposed company name is unique and not identical to or substantially similar to any existing registered entity in the national database.
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Ensuring Regulatory Compliance
Indonesian company law imposes specific naming requirements. A limited liability company name must consist of at least three words written in Latin characters. For locally owned companies, the name must also be in Indonesian, in accordance with prevailing regulations governing corporate identity.
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Limiting Misrepresentation
The approval process ensures that company names do not resemble state institutions, government agencies, international organisations, or other established entities. It also restricts the use of prohibited or misleading terminology that could distort the nature of the business.
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Validating the Deed of Establishment
An approved company name is a prerequisite for the drafting of the Deed of Establishment by a notary. Without formal approval, the notarial deed cannot be prepared or submitted for legalisation.
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Securing Legal Rights During Incorporation
Once approved, the company name is reserved for a limited validity period, typically sixty days. This reservation period allows founders to complete the incorporation process while ensuring that the approved name remains protected within the corporate registry.
What are the Legal Requirements for Company Name Approval Under Indonesian Company Law?
Under Indonesian company law, the naming of a Perseroan Terbatas is governed by clear statutory standards intended to preserve order within the national corporate registry. A proposed PT company name must be written in the Latin alphabet, consist of at least three words, and obtain prior approval from the Ministry of Law and Human Rights through the Legal Entity Information System before incorporation can proceed. The name must be demonstrably unique, must not resemble government agencies or established institutions, and must be preceded by “PT” (Perseroan Terbatas) as a mandatory legal identifier.
Key legal requirements for company name approval include:
Structure
A PT company name must contain a minimum of three distinct words. Single-word or two-word formulations do not satisfy statutory naming standards under Indonesian regulations.
Language
Locally owned companies are required to use the Indonesian language. Foreign-owned companies, including PT PMA entities, may use English or other foreign languages, provided the name remains in the Latin alphabet and complies with prevailing legal provisions.
Mandatory Prefix
The approved name must be preceded by “PT” (Perseroan Terbatas), reflecting its status as a limited liability company under Indonesian law. The prefix forms part of the company’s official legal identity.
Uniqueness and Availability
The proposed name must not be identical or substantially similar to existing registered companies, ministries, state institutions, or international organizations. Verification is conducted electronically through the Legal Entity Information System to ensure exclusivity within the corporate database.
Prohibited Content
Company names may not contain vulgar expressions, violate public order or morality, or consist of meaningless combinations of letters and numbers. Formulations that obscure the identity or nature of the business are subject to rejection.
Validity Period
Once approved, the company name reservation remains valid for sixty days. During this period, founders must execute the Deed of Establishment before a notary and complete the incorporation process. If the period lapses, a new submission is required.
What Conditions Must Be Satisfied for Company Name Approval in Indonesia?
Authorities assess whether the proposed company name complies with prescribed naming rules, aligns with statutory formatting requirements, and avoids duplication within the registered database. Only upon satisfaction of these legal conditions may the name be reserved and used in the Deed of Establishment.
A non-compliant company name application is rejected at the preliminary stage, delaying incorporation timelines and requiring resubmission under the same regulatory review process. In practice, company name compliance in Indonesia functions as the first legal checkpoint, shaping whether a business can formally enter the market under a protected and approved corporate identity.
The key conditions that must be satisfied for company name approval in Indonesia are stated below:
- The company must have at least three words
- The name must begin with the word PT
- The name can only be in roman alphabets
- If the company is fully owned by citizens of Indonesia, the name must be in the Indonesian language
- The name must be legally verified by the Legal Entity Information System
- The company must be relevant to the business objectives
- It cannot imply a connection to government authorities.
How Do You Reserve and Register a Company Name in Indonesia Step by Step?
Here’s the step-by-step guide to reserve and register a company name in Indonesia, with the compliances and risks if legal requirements are not complied with:
| Stages | Explanation | Compliance | Risk if not complied |
| Name Structuring | Prepare at least three alternative company names that align with your intended business activities and KBLI classification. | The name must consist of a minimum of three words, written in the Latin alphabet, and begin with “PT” (Perseroan Terbatas). | Immediate rejection if the structural requirement is not met. |
| Language Compliance | Determine whether the company is locally owned (PT) or foreign-owned (PT PMA). | The local PT must use the Indonesian language. PT PMA may use English or a foreign language in Latin script. | Rejection due to non-compliance with the language policy. |
| Preliminary Availability Check | Conduct a name availability search through the Legal Entity Information System (AHU Online). | Name must not be identical or substantially similar to an existing registered entity. | Application rejected due to duplication or similarity. |
| Voucher Purchase | Purchase the official name reservation voucher through the Directorate General of General Legal Administration system. | Government fee of IDR 100,000 per submission. The voucher is valid for 60 days and non-refundable. | Loss of fee if the name is rejected or the voucher expires. |
| Online Name Submission | Submit the proposed company name electronically via the Ministry of Law and Human Rights system. | Must confirm compliance with statutory naming rules and declaration accuracy. | The system will automatically reject non-compliant entries. |
| Regulatory Review | Authorities verify uniqueness, restricted terms, and compliance with Government Regulation No. 43 of 2011. | The name must not resemble ministries, state institutions, or international organisations. Must not contain prohibited or misleading words. | Formal rejection requires a new submission. |
| Name Approval and Reservation | Once approved, the company name is officially reserved in the national corporate registry. | Reservation validity is 60 days from the approval date. | The name becomes available again if incorporation is not completed within the validity period. |
| Deed of Establishment | Use the approved name to draft and notarise the Deed of Establishment (Akte Pendirian). | The name must match exactly as approved in the system. | A deed cannot be legalised without an approved name. |
| Legalisation and Incorporation | Submit the deed for legalisation and proceed with company registration, tax ID, and business licensing. | Must be completed within the reservation validity period. | Delay may require a fresh name application and additional fees. |
Conclusion
For companies preparing to establish a presence in Indonesia, the approval of a company name is often the first formal interaction with the country’s regulatory framework. It is a procedural step but also a revealing one. The standards are defined, the review is electronic, and the outcome determines whether incorporation can proceed without delay. A misstep at this stage can stall timelines and require resubmission under the same statutory scrutiny.
3E Accounting works with both Indonesian entrepreneurs and foreign investors to manage this process with clarity and discipline. Our team conducts structured name availability checks, reviews statutory naming requirements, and oversees submission through the Legal Entity Information System to reduce the risk of rejection. By aligning your proposed PT or PT PMA name with Indonesian company law from the outset, we help ensure that your incorporation begins on firm legal ground and advances without unnecessary interruption.


