Set Up Local PT Company
How to Establish a PT Company in Indonesia?
Are you planning to start a business in Indonesia? Then you will want to know about how to establish a PT company in Indonesia. What is PT company, you might ask? PT is the abbreviation of Perseroan Terbatas, a limited liability company whose capital is divided into shares and the responsibility of shareholders based on the number of shares that he or she has.
Fortunately, since the beginning of 2016, the procedure of establishing a PT company has been continuously simplified. And this is how you can establish a PT company in Indonesia!
Sizes of local PT company
After understanding what is PT company, you should also know that establishing a PT company in Indonesia needs some amount of money as your business capital. The amount is varied, but usually, it starts from IDR50 million to more than IDR10 million. Based on this amount of capital, PT company in Indonesia is categorized into three sizes:
- Small : above IDR50 million to IDR500 million
- Medium: above IDR500 million – 10 billion
- Large : above IDR10 billion
Important things to prepare
There are several important things you need to prepare if you want to establish a PT company in Indonesia. First thing first, you need to set the framework of the Articles of Association of the Limited Liability Company as the main data. You also need to make the deed of the establishment to the Notary, which include:
- Company name (prepare at least three name options)
- Complete data name of the company’s founders
- The amount of the authorized capital of the company
- Place and company position and complete address
- Data of Board of Directors and Commissioners
- Purpose and objectives of the company
- Shareholder data and amount of issued and paid-up capital
- The TAX ID Number of the Board of Directors and Commissioners
- The identity card of the company’s founders
- Power of Attorney if the establishment of the company is to be authorized
Procedures for establishing a PT Company in Indonesia
Setting up a company in Indonesia requires several procedures to follow, which include:
- All founders, or one of the authorized founders, must submit the application for the establishment of a Limited Liability Company to the Notary by bringing the completeness of the Company’s articles of association and the requirements required for the Deed of Establishment and Limited Liability Company.
- The Notary will make minutes of copies of the same limited company statement with a deed of incorporation to be signed by the founders.
- If there is a mistake in writing, founders or the power of attorney is allowed to make corrections.
- After the minutes or copies of the Company’s articles of association have been signed and submitted to the Notary, an Authentic Deed of Limited Liability Company Certificate will be issued, signed, and stamped by the Notary.
- As evidence of the company’s establishment, the deed of the establishment must include written day, date, month, and year.
- The Notary will submit the Deed of Establishment containing the articles of association of a limited liability company to the Minister to obtain the legalization as a Legal Entity.
- After the issuance of the Decree of the Minister of Law and Human Rights of the Republic of Indonesia, the Limited Liability Company will obtain status as a Legal Entity.
- Once the Deed of Establishment and Ratification of the Company’s Articles of Association is completed, your business has been established in the form of the Limited Liability Company (PT).