There are many things to prepare when establishing a Limited Liability Company (PT). One of the most crucial aspects is the selection of a name. Choosing a PT name cannot be done arbitrarily. There are rules to be followed when determining the company’s name. What are these rules? Continue reading the following discussion.
Rules in Choosing a PT Name
The selection of a Limited Liability Company (PT) name must not be done arbitrarily. Everything is regulated in Government Regulation No. 43 of 2011, which discusses the Procedures for Submission and Use of Limited Liability Company Names.
Here are the things to consider in choosing a PT name according to the applicable regulations:
Must start with the phrase “PT”
The naming of a Limited Liability Company must always start with the phrase PT. If the company is a publicly traded PT, then the end of the company name must include the phrase “Tbk.” Tbk is an abbreviation for “terbuka” (publicly traded).
Name must be in Indonesian
According to Article 11 of Government Regulation No. 43 of 2011, companies whose entire shares are owned by Indonesian citizens (WNI) or Indonesian legal entities must use the company name in the Indonesian language.In simpler terms, PT owned by a legal entity or Indonesian citizen must use the Indonesian language. So, make sure not to use a foreign language to name your company.
Name must be in Latin letters
The company’s name must be written in Latin letters. Also, ensure that the chosen name has not been legally used by another company. Additionally, the company’s name must not be similar to the names of other companies, both in writing and pronunciation. For example, PT Griya Pratiwi with PT Griya Pertiwi or PT Bangun Mandiri with PT Bangoen Mandiri.
Must not be similar to the name of an institution
As mentioned earlier, the selection of a company name must not be similar or identical to the names of government institutions. It must also not be similar to the names of international institutions unless the company has obtained permission from the relevant institution.
Must not contradict public order
Choosing a PT name must also consider prevailing public order and morality. The company’s name must not consist of a series of letters or numbers that cannot form a word, for example, PT 321.According to Government Regulation No. 43 of 2011, the company owner can propose the company name along with its abbreviation. For example, PT Wijaya Karsa abbreviated as PT WIKA.
Name must align with the purpose and objectives
The selection of a company name must be aligned with the purpose and objectives of the business activities. For example, PT Jaya Konstruksi, meaning that the company is engaged in the construction of buildings.
Name must not have legal entity implications
The company’s name must not imply legal entity, corporation, or civil partnership. Some examples are Usaha Dagang (UD), Ltd., SDN., Bhd., Koperasi Usaha Dagang (KUD), Association, Associate, Incorporated, and others.
Also read: Differences Between Individual PT and CV
In addition to following the above regulations, make sure to prepare more than one name option consisting of three syllables. This is to ensure that the proposed company name can be quickly approved by the Ministry of Law and Human Rights.
That’s how to choose a PT name in accordance with the applicable regulations. You can also easily have a PT with a virtual office. The way is to use virtual office vOffice which is already available in variuous area; Virtual office Jakarta, Virtual office Tangerang, Virtual office Bekasi, Virtual office Bandung, Virtual office Surabaya, Virtual office Medan, and Bali. Interested in establishing a virtual PT? vOffice can help with your PT establishment.