Are you ready to set up a startup company in Indonesia? Well, before doing it, remember to consider the kind of business entity you would like to establish since choosing the most suitable one in the country can be tricky. There are several choices available, such as a firm, cooperative, CV (partnership commanditaire), or PT (Limited Liability Company). Of all those business entities, you are very recommended to establish a PT (LLC).
Why establishing a PT?
When you establish a PT, the name of the company is legally guaranteed through the Minister of Law and Human Rights. Any other parties cannot use the registered PT name. Below are some reasons why establishing a PT can help you grow your business:
- The wealth of your PT is separated from the owner’s property. Therefore, in case there is a loss, the owner is only responsible for the capital held in the PT. It makes the owner have a legal position.
- As a PT, your company can participate in any job tenders that cannot be followed by individuals.
- Getting more trusted by your future clients. When your company has become a PT, clients are confident enough to deal with you, especially regarding payment for the services you provide them with.
- More possibilities to get a new investor. Not only future clients, but investors will also be attracted to invest in your company if it has become a PT.
- For the implementation of business activities in certain sectors such as tourism, communications, etc. a company is required to become a PT beforehand.
- Earning credibility from financial institutions such as banks to get financial support for business expansion in the future
However, there are required documents to establish a local company in Indonesia that must be fulfilled.
What are the documents required to establish a PT (LLC)?
As regulated in the Government Regulation as stipulated in Law No. 40, the Year 2007 regarding Limited Liability Company, several things must be fulfilled to establish a company. In the case of the establishment of a PT, there are required documents that must be fulfilled, such as:
- The original deed of a notary in the Indonesian language approved by the Ministry of Justice and Human Rights.
- A copy of Identity Card (KTP) of each founder or shareholder.
- A copy of Family Card (KK) for the founding party who will serve as a director.
- A copy of the Taxpayer Identification Number (NPWP) of the director accompanied with two sheets of the 3×4-sized colored photograph.
- A name of your PT. The name must consist of three (3) words without any words of a foreign language or any loan words.
- A copy of the letter of domicile or proof of the business place ownership. Note that your PT must not reside in the residential areas.
You should also remember two things below before establishing a PT:
- A PT should be established by a minimum of two or more persons.
- The capital has to be paid up of at least 25% of authorized capital.
Choose only the most reliable law firm to help you establish your PT
After you fulfill the required documents to establish a local company in Indonesia, consider a trusted law firm to help you set up your company. One of the most reliable ones is company-registration.co.id. Get more details on the procedure and the price of having a PT done here.
