Establishing a Limited Liability Company (PT) in Indonesia: Step-by-Step Guide

Establishing a Limited Liability Company (PT) is a crucial step in starting a business. Below is a step-by-step guide to setting up a PT along with its procedures and requirements:

Also read: Definition of PT (Limited Liability Company), Types, Advantages

Requirements for Establishing a PT

Before initiating the PT establishment process, there are several requirements that need to be fulfilled, including:

  • Minimum of Two Founders: A PT must be founded by at least two founders who can become shareholders.
  • Minimum Capital: A PT must have minimum capital as per the applicable regulations.
  • Company Name: Having a unique company name that has not been used by other companies.
  • Office Address: Providing a clear and verifiable office address.
  • Founder’s ID Card (KTP): Attaching copies of the founder’s and shareholders’ ID cards.
  • Power of Attorney: If using consultancy services, a valid power of attorney is required.

Also read: Individual PT Company Tax: Guide for Independent Entrepreneurs

Establishing a Limited Liability Company
Establishing a Limited Liability Company

Procedures and Steps to Establish a PT

Below are the steps to be followed in the process of establishing a PT:

  1. Submission of PT Name Application
    • Submit an application for using the company name to the Ministry of Law and Human Rights (Kemenkumham).
    • Ensure that the proposed name has not been used by other companies.
  2. Preparation of PT Establishment Deed
    • Prepare and make the PT establishment deed signed before a notary.
    • This deed contains information about the company name, purpose, authorized capital, management structure, etc.
  3. Issuance of SKDP (Domicile Letter)
    • Apply for SKDP to the Local Office of Investment and Integrated Services (DPMPTSP).
    • SKDP is used as proof of company domicile.
  4. Obtaining NPWP (Taxpayer Identification Number)
    • Apply for NPWP to the Local Tax Service Office (KPP).
    • NPWP is required for administrative and tax purposes.
  5. Preparation of Company Articles of Association
    • Prepare the company’s articles of association covering organizational structure, rights and obligations of shareholders, and decision-making mechanisms.
  6. Issuance of Business Identification Number (NIB)
    • Apply for NIB to the Investment Coordinating Board (BKPM) or Local Integrated Service Office (KPT).
    • NIB is the official identity of the company for business activities.
  7. Application for Trading Business License (SIUP)
    • Process SIUP application with the Local Industry and Trade Office.
    • SIUP is required for trading activities.
  8. Application for Company Registration Certificate (TDP)
    • Apply for TDP to the Local Company Registration Service Office (KP3).
    • TDP is used as proof of company registration in the local area.
  9. Republic of Indonesia Land Deed (BNRI)
    • Prepare the Republic of Indonesia Land Deed (BNRI) before a notary to be recorded at the local Land Registration Office.

Also read: Differences Between Open and Closed Limited Liability Companies (PT)

By following the above steps and fulfilling all specified requirements, you can successfully establish a PT and start your business journey legally and in compliance with applicable laws.

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