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PT Establishment Process in Indonesia

Jun 25, 2025

Overview

The speaker explains the legal requirements and step-by-step process for establishing a limited liability company (PT) in Indonesia, highlighting necessary documents, capital, and administrative procedures.

Legal Basis and Founders

  • Establishing a PT is governed by Law Number 40 of 2007 concerning Limited Liability Companies.
  • A minimum of two founders is required, who act as company administrators (Director and Commissioner).
  • Each founder must hold a position as an organ of the PT.

Business Sector and Name Registration

  • The specific business field must be identified in accordance with KLBI regulations.
  • The PT name must be at least three words, in Indonesian, and not already registered by another company.
  • Name reservation is required and processed through a notary, with a fee for each attempt.
  • If the preferred name is already used, alternative names must be submitted until approval is granted.

Required Documents and Notary Role

  • Founders must provide ID cards, tax numbers (NPWP), company stamp, phone number, email, founders’ photos, location of the business, and location plan.
  • Minimum authorized capital for a PT is 50 million Rupiah.
  • The composition of each founder's paid-in capital must be specified.
  • Notary assists with preparing the articles of association, deed of establishment, and company name reservation.

Administrative Process and Timeline

  • Notary also helps in obtaining the company's NPWP and processing relevant permits.
  • The establishment process, from document submission to official approval from the Ministry of Law and Human Rights (Kemenkumham), typically takes one to two weeks.

Decisions

  • Document and business field requirements clarified for establishing a PT
  • Emphasis on using a notary for administrative and legal processes

Action Items

  • TBD – Founders: Prepare all required documents and identify the business field for the new PT.
  • TBD – Founders/Notary: Reserve and obtain approval for the company name.
  • TBD – Notary: Draft the articles of association and deed of establishment.
  • TBD – Notary: Obtain company NPWP and process permits.