A Limited Liability Company (PT) is one of the most popular business entities in Indonesia. Understanding the characteristics of a PT is crucial for entrepreneurs and prospective investors when deciding on the type of business to establish. Below is an explanation of the key features of a Limited Liability Company.
Also Read: How to Reserve a PT Name in AHU: A Comprehensive Guide for Entrepreneurs
A PT is a Legal Entity
A PT holds the status of a legal entity, separate from its owners. This means it has its own rights and obligations and can act in its name in various legal transactions.
Established Through an Agreement
A PT must be formed based on an agreement between at least two or more parties. The formation process must comply with the regulations outlined in the Limited Liability Company Law.
Also Read: PT Formation Requirements You Need to Know
PT capital is divided into shares that can be owned by individuals or other entities. Shareholders have voting rights and are entitled to dividends based on the number of shares they own.
Profit-Oriented
A PT is established to generate profit, which is usually distributed to shareholders in the form of dividends.
Shareholders are only liable for the capital they have invested in shares, providing legal protection for their personal assets.
Clear Organizational Structure
A PT has a formal organizational structure comprising the General Meeting of Shareholders (GMS), Directors, and a Board of Commissioners. The GMS is the highest authority in corporate decision-making.
Operates Independently
A PT does not receive special privileges from the government, operating independently compared to certain other business entities.
Strategic Decisions Made in the GMS
Strategic corporate decisions are made during the GMS, where all shareholders have voting rights.
Also Read: PT Shares Guide: Classification, Distribution, and Relevant Rules
Economic and Commercial Function
A PT plays a significant role in the economy, including creating jobs and contributing to the state through taxes.
Long-Term Business Continuity
A PT can continue to operate even if there are changes in ownership or shareholders, providing long-term stability.
Also Read: How to Apply for SIUP Online: A Comprehensive Guide
Understanding the characteristics of a Limited Liability Company is essential for anyone looking to establish or invest in a company in Indonesia. With its unique features, such as limited liability and a clear organizational structure, a PT is a popular choice for many entrepreneurs.
Be sure to consider all these aspects when planning your business to fully leverage the potential offered by this type of business entity.
Also Read: What is TDP (Company Registration Certificate)?
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If you intend to start or grow a business, you can rely on the services of vOffice. Our professional team is ready to help with various business needs, such as;
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