Limited Liability Company

Limited Liability Company also known as Perseroan Terbatas (PT) is a business entity in the form of a legal entity whose status is regulated by the Act. Number 40 of 2007 concerning Limited Liability Companies. In general, the establishment of a limited liability should own a deed which is processed at a notary and must then be approved by the Minister of Law and Human Rights in order to have the status of a legal entity. The shareholders of PT are only liable up to the amount of their investments.

1. PT is a legal entity which has a separate legal personality from its shareholder. In addition, PT can hold a right over land namely Building Right (Hak Guna Bangunan).
2. PT can be a sponsor for its foreign employee in reference to KITAS (resident permit) application (terms and conditions apply).
3. PT can be classified into 2 types based on the shareholders.
   
   1. PT PMA (Foreign Direct Investment Company): if the PT has one or more foreign shareholders.
   2. PT PMDN (Local Company): if all of the shareholders are Indonesian citizens.

PT PMDN and PT PMA

1. Definition

PT PMDN (Local PT)

Investment activities to do business in the Republic of Indonesia which are carried out by domestic investors and using domestic capital.

PT PMA

Investment activities to do a business in the Republic of Indonesia, which carries out by foreign investors, which consist of foreign capital as a whole or in cooperation with domestic investors.

2 . Business Field

PT PMDN (Local PT)

PT PMDN can engage in any business fields in the Indonesian Standard Industrial Classification 2020 (the newest regulation). Such business fields can be classified into two categories, namely the open business fields and the business fields conditionally open (subject to certain requirements)

PT PMA

PT PMA is only allowed to engage in these following business fields.

1. Business fields that are not listed in Negative List Investment. Indonesia uses the “negative list” approach. Therefore, business fields that are not listed in Negative List Investment are 100% open for foreign investment.
2. The business field which conditionally open with a maximum percentage of foreign ownership.

3. Sponsor for KITAS

PT PMDN (Local PT)

Only PT PMDN (Local PT) who has capital minimum 10 billion rupiah eligible to be a sponsor KITAS application

PT PMA

Every PT PMA can be a sponsor for the KITAS application.

Disclaimer:

The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.