PT Company Establishment

Limited Liability Company or PT (Perseroan Terbatas) is one of the most frequently used business entities by entrepreneurs in Indonesia to start their business. Even though in the last few years, the procedures for establishing a PT and for obtaining business licenses are always changing and following the dynamics of government policies. Especially now for the establishment of companies, especially those in the form of PT, with the publication of the latest Industrial Standard Industrial Classification (ISIC), all companies that have been around for a long time must also make adjustments by making renewal of deeds. It aims to follow the Law on Job Creation that has been ratified/enacted, which has been adjusted to its level of risk.

For the establishment of a PT, a minimum of 2 or more founders is required which will occupy the positions of directors and commissioners, while they can also be shareholders at the same time. Shareholders in the establishment of a PT do not always have to be individuals; it can also be a legal entity.

According to the law, the validity period of the composition of the management of a Limited Liability Company (PT) is limited to a maximum of 5 years, and after 5 years, a new management must be selected through a general meeting of shareholders. Thereby, the management of Limited Liability Company (PT) after 5 years will dissolve automatically. However, the company’s legality period remains valid and the company can remain legally carrying out various business activities.

Mandatory requirements in the establishment of a PT include:

1. Residential Identification Card (KTP) and Tax Identification Number (NPWP) (if individual) and legal entity documents (if PT, Foundation, etc.) of the shareholders.
2. Residential Identification Card (KTP) and Tax Identification Number (NPWP) of the Management, in this case those who will serve as directors and commissioners.
3. Office lease letter or proof of ownership of business/office premises, the location of which must be in accordance with office zoning/commercial zoning/mixed zoning.
4. Office photo, if needed.

The company legal documents that will be obtained are:

1. Deed of establishment
2. Certificate of Legalization from the Ministry of Law & Human Rights
3. Company Tax Identification Number (NPWP)
4. Notification of Registration (SKT) from the Tax Office
5. Company Business Identification Number (NIB)
6. Business License, from OSS
7. Location Permit, from OSS

The length of the PT Establishment process will be adjusted to the line of business/ISIC taken. For a PT Establishment with a low-risk trading business field/ISIC, it will only take 7 working days (after the Deed of Establishment of PT has been executed). However, for a PT Establishment with a high-risk field/ISIC, it will take longer time to meet the licensing standards.

Saga Consulting, is committed to always providing all the convenience and quickness in order to provide satisfaction to the clients.

For PT Establishment Services, we can help you especially in the entire Jabodetabek area.

1. Law No. 40/2007 – Limited Liability Company/UUPT

This Law (UUPT) is the main legal source for regulating Limited Liability Companies in Indonesia

2. Law No. 1/1995 – Capital Market

Regulating the terms and conditions of parties (one of which is PT) and capital market instruments.

3. Law No. 25/2007 Investment

Regulating ways and procedures for investment by both local and foreign investors

4. Presidential Regulation No. 27/1998 – Merger, Consolidation, Takeover of PT

Regulating ways and procedures for merging, consolidating and taking over a PT

5. Presidential Regulation No. 43/2011 – Procedure for Submission and Use of PT Name

Regulating that the local PT name must use Indonesian Language.

6. Presidential Regulation No. 47/2012 – Corporate Social and Environmental Responsibility of PT (CSR)

Whereas PT that carries out activities related to natural resources is obliged to carry out CSR activities.

7. Presidential Regulation No. 7/2016 – Amendment to the Authorized Capital of PT

Whereas specifically for businesses with MSME criteria, the Authorized Capital is determined according to the agreement. And, 25% of the Authorized Capital must be paid up and placed.

8. Regulations of Ministry of Laws and Human Rights No. 14/2020 – Procedures for Submission of Application for Legal Entity and Approval of Amendment to Articles of Association and Submission of Notification of Amendment to Articles of Association and Amendment to Data of PT

Regulating the procedures for requesting approval and amendments to the articles of association as well as documents necessary to be submitted to the Minister through the Legal Entity Administration System (SABH).