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PT Company Registration
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A PT Local, also known as Local Investment Company (PMDN), is a business entity in Indonesia reserved only for Indonesian nationals. The company is entirely Indonesian-owned and -operated, thus maintaining full local control in accordance with Indonesian investment laws.
PT Registration is ideal for Indonesian entrepreneurs wanting to formalise their business legally. The structure protects personal assets from business liabilities, offering limited liability.
PT (Local)
- 100% Indonesian ownership
- Starting from IDR 50 million (~USD 3,300)
- Fewer regulatory hurdles
- Broader access to sectors
PT PMA (Foreign)
- Minimum 1% foreign ownership
- IDR 10 billion (~USD 650,000)
- Stricter oversight
- Limited access to certain sectors
What are the main benefits of setting up a PT in Indonesia?
Setting up a PT company in Indonesia provides many advantages for both domestic and international business owners. The main benefits are:
- The limited liability feature of a PT means a shareholder's personal assets are protected from business debts. Effective risk management depends on the separation of personal and business assets.
- To register a PT demonstrates adherence to local regulations, fostering trust with local stakeholders. This commitment should ease business operations in Indonesia's expansive market.
- A PT can access various financing avenues, including bank loans and investments. This ability to raise capital is essential for business expansion.
- Certain business activities are exclusively available to local companies.Some business activities are restricted for Foreign Direct Investment / PMA. Establishing a PT removes the typical restrictions placed on foreign investors in these activities.
Document Requirements
- A minimum of 2 shareholders
- Indonesian shareholders provide KTP/NPWP (individuals) or company documents (articles, amendments, approvals, domicile, tax ID, license, TDP/NIB)
- Identity and contact details of Company Directors and Commissioner:
- Original Domicile from building management
- Copy of Lease Agreement between company and building management
- Other required documents
Special Requirements
A PT company should have 2 Local Shareholders with the following titles:
- 1 Local Director
- 1 Local Commissioner
Register a PT in Indonesia with LMI Consultancy
- Consult your inquiry with our professional consultant
- Submit necessary document
- Proceed with the payment
- Application process
- Receive the complete document
Other Popular Company Registration Services in Indonesia
Setup a Business in Indonesia with LMI Consultancy
Established in 2016, LMI Consultancy has been supporting countless individuals in understanding the intricacies of visas, business setup, tax & accounting, and property investment in Indonesia, providing a comprehensive and dependable service.
We take pride in being an ethical and innovative company that places a strong emphasis on exceptional customer service and strives to set a new standard in our industry, guaranteeing a smooth and encouraging experience for our clients.
FAQ
Can foreigners own a PT company in Indonesia?
Indonesia permits foreign company ownership, however, the allowed percentage varies by company type.
What tax laws apply to PT companies in Indonesia?
Indonesian corporate income tax rules mainly determine the tax liabilities of a PT, a type of limited liability company. Being established or having its headquarters in Indonesia qualifies a company as a tax resident in the country.
What are the minimum capital requirements for a PT company in Indonesia?
The amount of capital needed to start a business in Indonesia depends on the size of the company, with three different sizes available.
- Small: Above IDR 50.000.000 – 500.000.000
- Medium: Above IDR 500.000.000 – 10.000.000.000
- Large: Above IDR 10.000.000.000
Disclaimer : Our services in LMI Consultancy provide consulting services focused on ensuring client compliance with applicable immigration and legal regulations in Indonesia. We do not provide or facilitate the production of official government documents, nor do we offer any expedited or preferential access to government services.
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