Local-Owned Company (PT)

Some business fields have limitation for foreign ownership, therefore Local-Owned Company is one of the alternative and the minimum business investment is starting from US$5,000.

Setting up a Local Company (PT)

A company or Perseroan Terbatas (abbreviated to PT) is the most common form of business entity in Indonesia. It’s roughly similar to a Limited Liability Company in structure and function. 
As a local-owned company (PT), only Indonesian citizens and Indonesian legal entities are allowed to hold shares as registered shareholders.
A local-owned company (PT)can operate a wider variety of business activities than foreign companies, both in terms of business fields and areas of operations.

Basic Requirements of a Local Company (PT)

Organizational Structure

The minimum organizational requirements to establish a local-owned company (PT) are as follows:

  • 2 local shareholders (must be individual Indonesian residents and/or other local-owned companies)
  • 1 director (at least there is 1 local director in the company)
  • 1 local commissioner

Minimum Investment Value

Setting up a local-owned company (PT) requires an authorized capital.

A local-owned company (PT) can have three different sizes depending on their total projected investment value as follows:

  • Small: IDR 50 million (±USD 3.500) to IDR 500 million (±USD 35.000)
  • Medium: above IDR 500 million to IDR 10 billion
  • Large: > IDR 10 billion

Note: To hire a foreign employee in a local PT company, your company size should medium size and we suggest with an authorized capital of above IDR 1 billion.

Document Requirements

  • Proposed company name (three words in Bahasa Indonesia) and domicile of the company
  • Purposes, objectives and business activities of the company
  • Office Address and its lease agreement provided by the office provider
  • Number of shares, share classes (if any), including the number of shares in each class, rights attached to each share, and nominal value of each share
  • Structure of shareholders, directors, and commissioners of the company/legal entity. The shareholders and commissioners should be local residents of Indonesia.

If the shareholder is an individual

  • Copy of Personal ID (KTP)
  • Copy of Tax ID (NPWP)

If the shareholder is a company/legal entity

  • Copy of Article of Association (AKTA)
  • Copy of Deed of Establishment (SK Kemenkumham) showing the board of directors

Steps to Register a Local-Owned Company (PT)

1Register company name with the Ministry of Law and Human Rights.
2Notarize Article of Association (AKTA Perusahaan).
3Ratify the Deed of Establishment or Corporate Legal Entity (SK Kemenkumham) with the Ministry of Law and Human Rights.
4Obtain company Tax Payer Registration Number (Tax ID or NPWP) with the local tax authority.
5Obtain Single Business ID Number (NIB) from Online Single Submission (OSS).
6Obtain the other business licenses (if the business classification requires another license) via Online Single Submission (OSS) such as Commercial License for specific business classifications.
7Register for the other respective commitments for employee requirements via Online Single Submission (OSS) such as national social security insurance (BPJS) and Employment Report (WLK).

Get a Quote to Local-Owned Company (PT) Set up in Indonesia

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