Business Setup > PT Establisment (Local PT)

Local Limited Liability Company Establishment (PT PMDN)

“Empowering Ventures: A Guide to Establishing a Local PT in Indonesia.”

In accordance with Law number 40 of 2007 (UU PT) concerning Limited Liability Companies, the Indonesian LLC known as the Local PT (Perseteroan Terbatas), is structured exclusively by 100% local entrepreneurs.

This business entity necessitates a minimum of two local Shareholders, who can either be local entities or individuals, along with one Director and one Commisioner.

Based on investment value, a local PT is categorized into three types:

  • Small-scale: ranging from IDR 51 million to IDR 500 million;
  • Medium-scale: above IDR 500 million to 10 billion;
  • Large-scale: exceeding 10 billion.

Note: For those intending to employ foreign workers in the future, establishing a company at a minimum medium scale is advisable.

Concerning permissible business sectors in Indonesia, it is essential to be aware of the Positive Investment List (formerly Negative Investment List), which delineates sectors exclusively open to local companies. This consideration often prompts foreign parties to establish businesses through a Local PT, utilizing a specific nominee agreement mechanism.

Steps to Register Your Local PT

1

Requirements Preparation

Name of Company (must contain at least three words), Identity Card and Tax ID of all company’s founders, Amount of Authorized and Paid-up Capital of the company, Percentage of shares of the Shareholders, Business fields and activities, Location and address of the company.

2

Deed of Incorporation & Legalization from the Minister of Law

The notary will submit the Deed of Incorporation to the Minister of Law, containing the company’s article of association. Once approved, the Minister issues a Decree, granting Legal Entity status to the Limited Liability Company.

3

Registration of Tax ID Number (NPWP)

NPWP serves as a unique identifier for the company in its financial and tax-related transactions.

4

NIB & OSS permit application

NIB applies as a Business Registration Number obtained through the Online Single Submission (OSS) system, along with the business location and permit.

5

Other Applicable Licenses

Obtain other relevant business licenses from the related government body if required.

Other Services

Foreign Investment (PT PMA)

Establishing Foreign Investment in Indonesia

Investor Visa

Designed for foreigners who have registered a business in Indonesia (PT PMA)

Multiple Entry Business Visa

Stay in Indonesia for up to 30 or 60 days for a specific period

Permanent Stay Permit (KITAP)

Granting you a long-term residency rights in Indonesia and to live indefinitely without the need to renew your visa annually

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