Can a law firm be established as a PT (Limited Liability Company)? Discover the benefits, legal standing, and how to set one up, including domicile and legal compliance solutions.
In Indonesia, law firms are generally established as a firma (firm) or civil partnership, but the practice of setting up law firms as PTs is becoming increasingly common. Is this legal and beneficial? Let’s explore.
Read Also: Requirements to Establish a Law Firm in Indonesia
Legal Structure of Law Firms in Indonesia: Can It Be a PT?
Legally, the legal profession in Indonesia is regulated by Law No. 18 of 2003. This law affirms that advocates are independent legal professionals who provide legal services.
However, in practice, some law firms are established as Limited Liability Companies (PT). While not explicitly prohibited, this model is subject to ongoing debate. Legal scholars, such as Prof. Yetty Komalasari Dewi from the University of Indonesia’s Faculty of Law, assert that the ideal form for a law firm is a maatschap (civil partnership), not a PT, since the legal profession should not be profit-driven.
Nevertheless, adapting to the demands of the modern market has led some law firms to choose the PT structure for its flexibility and business appeal.
Read Also: Who Can Establish a Law Firm in Indonesia?
Advantages of a Law Firm as a PT
Despite the legal debate, law firms established as PTs offer several practical advantages:
Personal Asset Protection
A PT provides legal protection by separating personal and corporate liabilities.
Ownership can be easily transferred to new partners or investors without dissolving the firm.
Credibility with Clients and Partners
Having PT status gives the firm a more professional image and enhances its credibility.
Potential for Long-Term Operation
A PT does not dissolve with changes in ownership, ensuring business continuity.
Read Also: Advantages of a Limited Liability Company (PT)
How to Establish a Law Firm as a PT
If you choose to establish your law firm as a PT, here are the steps to follow:
Prepare Documents and Capital
Provide identity documents, shareholder composition, and initial capital as required.
Create a Deed of Establishment with a Notary
The notarial deed must state the company name, organizational structure, and scope of business in legal services.
Obtain Legalization from the Ministry of Law and Human Rights
Submission is done online via the General Legal Administration (AHU) system.
Obtain a Tax ID (NPWP) and Business ID (NIB)
Register via the Online Single Submission (OSS) system for operational permits and legal compliance.
Ensure All Advocates Are Registered
They must hold an STRA (Advocate Registration Certificate) to practice legally.
Align with Professional Regulations
Ensure the PT structure complies with the code of ethics and principles of the legal profession.
Read Also: How to Establish a PT: Step-by-Step Guide
Administratively, a law firm can be formed as a PT as long as it does not violate the ethical principles of the legal profession. A PT structure offers practical advantages such as asset protection, credibility, and operational efficiency. However, legal and regulatory compliance must always be observed.
If you’re looking to establish a law firm as a PT with an easy process, full legal compliance, and a valid business address, rely on vOffice’s PT establishment services.
The Importance of a Legal Business Address for Law Firms
Every PT must have a registered business address. This address is essential for licensing, correspondence, and audits. However, not all lawyers own or lease physical offices.
This is where virtual office solutions become highly relevant.
Read Also: 6 Benefits of Virtual Offices for Companies and Employees
vOffice’s PT establishment services also include a bonus virtual office, which is ideal for modern law firms. With this service, you don’t need to lease a physical office but still get a legally valid address, full legal documentation, and access to professional meeting rooms as needed.
Benefits of using vOffice’s virtual office service include:
- Legal business address for PT registration
- Prestigious location in the city center
- Digital support for legal compliance and licensing
- Mail handling, call answering, and access to meeting rooms
For more details, visit the vOffice Virtual Office page.
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FAQ
Can a law firm be established as a PT?
In practice, yes. However, there is ongoing academic debate, as the legal profession is not meant to be profit-oriented.
What are the advantages of a law firm being a PT?
Personal asset protection, ownership flexibility, business credibility, and long-term sustainability.
Is it legal to establish a law firm with a virtual office?
Yes, as long as the virtual office address is officially registered and meets OSS and other regulatory requirements.
Is a notary required to establish a PT law firm?
Yes, a notary is required to draft and legalize the deed of establishment according to applicable laws.
How can a PT law firm avoid ethical violations?
Ensure all activities comply with the advocates’ code of ethics, and use the PT structure solely as an administrative entity, not as a purely commercial one.
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