Guide to Select a Company Name for Your Indonesia Company
Choosing a company name for your Indonesia company is an important decision that requires careful thinking and consideration of business regulations. Since company names need to be approved by the Indonesia’s Ministry of Law and Human Rights before registration of the Indonesia company, there is also a need to follow rules for selecting a legally abiding company name. This article provides Guide to Select a Company Name for Your Indonesia Company.
Requirements of a Company Name in Indonesia
The company name must have at least three words
It is a legal requirement that each Indonesian company must have a company name that comprises of at least three words. However, a company name can be different from a brand and hence you can still register a brand name that is fewer than three words. This requirement applies for all companies either for local or foreign investment company.
A company name should begin with the word “PT”
All limited liability companies in Indonesia start with the word “PT” which stands for Perseroan Terbatas (meaning Limited Liability Company). “PT” does not count as a word for the company name and hence does not affect the word count requirement.
Only Roman alphabets can be used
A company name must use only the Roman alphabets. Other alphabets such as Greek, Chinese, etc., are not allowed in an Indonesian company name.
Local companies must have their company names in Indonesian language
A local limited liability company that is fully owned by Indonesian citizens must have their company name in Indonesian language.However, foreign investment company (“PMA”) can have company names in English or in other foreign languages.
Restrictions on Company Names in Indonesia
A company must not use a name which:
- Is being lawfully used by another company or is similar to another company name;
- Includes profanity or disrupts public order;
- Has a similar or identical name as a government or international agency (unless their approval has been given),
- Does not conform to the company’s purpose and business activities;
- Consists of numbers and a set of letters that do not form any words or have a proper meaning
It is also important to note that the Ministry of Law and Human Rights may reject a company name if the proposed company name is similar to other company names.
Reserving a Company Name in Indonesia
Applicant companies may submit an application for their company name and reserve it through a notary.
The process must be done through a computerized processing system and the notary will handle the reservation, clearance, and also payment through the online platform. There is usually a fee to obtain clearance for the proposed company name.
A company name will only be reserved for 60 days.
Once an application is successful, the Ministry of Law and Human Rights will give approval for a company name electronically. With the approval, you can start to draft your deed of establishment for your company registration. If you would like to change your company name after you have set up your company with the company name approved earlier, you will need to go through the same procedure again and prepare to change your deed of establishment with the help of a Notary Public. To avoid the hassle, additional cost and lost of time, make sure you choose a right name for your company right from the beginning.