Your Guide to Setting Up Your PT Business
If you’re keen to set up a business in Indonesia, then this local company (PT) formation guide is the guide you need. This guide explains why a PT business entity is the most viable option.
What Is a Local Company (PT)?
A PT company is one of the most recognisable local business entities. Locals can use this local company option to launch their business. It is a limited liability company per the local laws. As such, only citizens of the country can be registered as shareholders and hold shares of their own.
Why do many business owners choose this PT option? It is because this is one of the few business entities in Indonesia that allow you to run a business activity of your own choosing. Compare that to a PMA (a foreign company entity) where not all business activities are allowed, a PT seems like the best possible option.
PT’s Distinguishing Traits
In Indonesia, these are the traits that set this local company apart from all the others:
- This entity is not subject to the country’s Negative Investment List.
- You need two shareholders and one director to establish the company.
- You need one person to act as the commissioner.
- The company registration process can be completed within 39 days
How Much Capital Is Required?
The capital required for this local company (PT) formation depends on the size of your business:
- A Small Company – Between IDR 50,000,000 – 500,000,000.
- A Medium Company – Between IDR 500,000,000 – 10,000,000,000.
- A Large Company – More than IDR 10,000,000,000.
What the Company Formation Process Looks Like
To set up your local company in Indonesia, these are the steps that you would be required to take:
- Submit an application for your business name. This can be done at the Ministry of Law and Human Rights (1 Day).
- Prepare your Articles of Association (3 Days).
- Get your deed of establishment approved by the Ministry of Law and Human Rights (3 Days).
- Get your Certificate of Domicile from the Government (10 Days).
- Get your Taxpayer Registration Number (NPWP) (2 Days).
- Get your Trading Business License (SIUP) (10 Days).
- Get your Company Registration Certificate (10 Days).
Need Some Help? We’re Here for You
3E Accounting is a team of company formation experts. With years of industry experience, you can depend on us to guide you through the business setup process from start to finish. Incorporating a company can be challenging, but not if you work with the right team. For more information about our Indonesia company incorporation services, contact us today.