Indonesia has various types of business structures, one of the most popular being the Limited Liability Company (PT). This article will explain the types of PT in Indonesia, from PT Terbuka to PT Asing, along with their characteristics and benefits.
Related Read: Mandatory Requirements for Establishing a PT
Classification of PT Types in Indonesia
PT Terbuka (Public Company)
PT Terbuka is a company whose shares can be freely traded on the stock exchange. It is suitable for large-scale businesses requiring public funding.
Examples of PT Terbuka in Indonesia include PT Bank Rakyat Indonesia Tbk and PT Telkom Indonesia Tbk.
PT Tertutup (Private Company)
Unlike PT Terbuka, PT Tertutup’s shares are not traded on the stock exchange. They are typically owned by families or a small group of investors.
The main characteristics of PT Tertutup are full control by the owners and flexibility in decision-making without public oversight.
Related Read: Costs of Establishing a PT: A Guide for Entrepreneurs
PT Kosong (Inactive Company)
PT Kosong is a company that has been established but does not have operational activities. This type of PT usually already has legal documents, such as the deed of establishment, a tax identification number (NPWP), and approval from the Ministry of Law and Human Rights.
Many entrepreneurs choose to buy a PT Kosong because it is faster than establishing a new PT. PT Kosong can be used to start a business without going through lengthy bureaucratic processes.
PT Domestik (Domestic Company)
PT Domestik is a company established and operating within Indonesia’s legal jurisdiction. Its capital and management are fully sourced domestically.
Advantages of PT Domestik include compliance with local regulations, ease in obtaining business permits, and potential support from local governments.
PT Perseorangan (Sole Proprietorship)
PT Perseorangan is a type of business owned and operated by a single individual. This type of PT became more recognized after the government introduced regulations to support MSMEs (Micro, Small, and Medium Enterprises).
According to the Job Creation Law, PT Perseorangan requires less initial capital compared to other PT types. For example, catering businesses or online shops can benefit from this type of PT.
Related Read: How to Establish a PT: Step-by-Step Guide
PT Asing (Foreign-Owned Company)
PT Asing is a company where the majority of the capital is owned by foreign investors. Typically, these companies are established to operate in Indonesia under the Foreign Investment (PMA) regulations.
The primary difference between PT Asing and PT Domestik lies in the source of capital. PT Asing requires additional permits, such as BKPM approval, and must partner with local entities in specific sectors.
Related Read: Capital Requirements for PT in Indonesia: Legal Guidelines
How to Choose the Right PT Type
Here are some tips for selecting the best PT type for your business:
Factors to Consider
When choosing a PT type, consider the scale of your business, the available capital, and your long-term goals.
Consult with Legal Experts
Consulting with a notary or legal consultant can help you understand the legal implications of the PT type you choose.
Related Read: Disadvantages of PT: Challenges in the Business Structure
Limited Liability Companies (PT) offer a highly flexible business structure with many benefits. By understanding the types of PT, such as PT Terbuka, PT Tertutup, PT Kosong, PT Domestik, PT Perseorangan, and PT Asing, you can choose the one that best suits your business needs. Remember to consult legal experts to ensure all steps comply with regulations.
- Establishment of Limited Liability Company (PT)
- Establishment of Commanditaire Vennootschap (CV)
- Haki / Indonesia trademark registration
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