PT – local campanies

The form of a Limited Liability Company (PT) is a corporate legal entity most widely used and in-demand by employers. This is because the legal entity PT has many advantages when compared with other legal entities. The advantages include the vastness of owned business, authority, and responsibility that is limited to the paid-in capital. The difference between PT and CV is that PT is a legal entity that is equal to the person and has wealth separate from the wealth of its founders. Thus, the PT can act in court as well as in court as it is with people, and can have its own assets. While the CV, is a business entity that is not a legal entity and the wealth of its founders is inseparable from the wealth of CV. Establishment of PT is done by 2 (two) persons or more and must be made by Authentic Act as Deed of Establishment made before Notary authorized.

Characteristics of Limited Liability Company (PT) :

1. Its establishment may be conducted by Indonesian citizens or Foreign citizens in the framework of PMA.
2. The process of incorporation, amendment, or dissolution of the Company shall be regulated by Law no. 1 the Year 1995 concerning Limited Liability Company.
3. Any incorporation and amendment of the Articles of Association of Limited Liability Company shall obtain Legalization of the Minister of Law and Human Rights of the Republic of Indonesia.
4. Open or Closed PT Status.
5. Being as profitable as much as possible.
6. Capital status can be PMA, PMDN, BUMN, or Private Local.
7. Authorized capital is set at least Rp. 20 million unless otherwise determined in accordance with its business activities.
8. The existence of the Shareholder as the owner of the capital is clearly mentioned in the Deed of Establishment or the amendment either on behalf of a foreign/local company or on behalf of an individual.
9. Corporate responsibility and supervision shall be conducted by the Director and Commissioner.
10. The highest decision shall be within the resolution of the General Meeting of Shareholders.

Company qualification based on SIUP

1. A large company is a company that has a Capital or Net Wealth beyond the investment of land and buildings or paid-up capital in the Deed of Establishment / Amendment above Rp. 500.000.000 (five hundred million rupiahs).
2. Medium Enterprise is a company that has Capital or Net Wealth outside of investment of land and building or paid-up capital in Deed of Establishment / Perubahaanya Rp. 200,000,000 (two hundred million rupiahs) to Rp. 500.000.000 (five hundred million rupiahs).
3. A small company is a company that has Capital or Net Wealth outside of investment of land and building or paid-up capital in Deed of Establishment / Amendment up to Rp 200,000,000 (two hundred million).

Flow Process establishment of Limited Liability Company

1. STAGE 1 Checking & Registration of Company Name.
2. PHASE 2 Establishment of Deed of Establishment of PT and Ratification of Minister of Justice Right.
3. STAGE 3 Certificate of Domicile of the Company.
4. PHASE 4 NPWP-Taxpayer Identification Number.
5. STAGE 5 UUG / SITU-License of Business Place.
6. PHASE 6 SIUP-License of Trading Business License.
7. PHASE 7 TDP-Registry of Company Register.

The requirement to establish a Limited Liability Company

1. Fill out the establishment form Limited Liability Company.
2. Preparing 2 (two) PT names as alternatives.
3. Attach a photocopy of the identity card of the company’s founders.
4. Attach a copy of the ID card of the Board of Directors (Board of Directors & Commissioners).
5. Attach a copy of the head of the company KK.
6. Enclose a photocopy of the Letter of Contract / Lease or PBB last year proof of ownership of place according to the domicile of the company.
7. Attach a photocopy of the Certificate from the owner of the building/office if residing in the Office Building.
8. Attach a copy of the SITU-Letter of Business Permit based on the Disorders Act for business activities required by SITU.

Capital Establishment Limited Liability Company ( PT )

In-Law Number 40 the Year 2007 regarding Limited Liability Company (“UUPT”), the authorized capital of PT is Rp 50 million with a minimum of 25% paid as paid-up capital of PT. This requirement is often an obstacle for those who want to establish a PT but the mediocre capital. Though they understand that establishing a PT that has a legal entity can reduce the risk of doing business in the future.

The government then issued a new rule where the amount of authorized capital for the establishment of PT depends on the agreement of its founders. It is mentioned in Government Regulation No. 29 of 2016 concerning Changes in Authorized Capital of Limited Liability Company (“PP 29/2016”). However, this capital requirement applies only to MSMEs (Micro, Small and Medium Enterprises). To learn more about the capital and the ease of other requirements to establish this PT can be learned at the following link.


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.

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