Local PT Company

This business license is one of the most common in Indonesia. While the founders of a Local PT must typically be Indonesian citizens, there are certain circumstances where foreign investors may also establish a Local company in the country.

What Are The Benefits Of a Local PT Company For Foreigners?

  • No Restrictions on Business Fields:
    Certain business sectors in Indonesia are entirely or partially closed to foreign investors. However, a local PT company is exempt from these regulations, making it a viable solution for operating in restricted sectors.
  • Lower Incorporation Costs:
    Compared to a PT PMA (foreign investment company), the paid-up capital for a local PT company is significantly lower. It typically ranges from IDR 50 million to over IDR 10 billion depending on the company’s size.

How Foreigners Can Benefit from a Local PT Company

To leverage the advantages of a local PT company as a foreigner, a local nominee arrangement is required. This involves appointing a local nominee director who will hold full legal ownership of the company.

As a foreigner, your control over a local PT company in Indonesia comes through managing the company’s bank account. While you won’t possess legal ownership, you can oversee the company’s financial operations by handling the account and transactions.

How Foreigners Can Benefit from a Local PT Company

To leverage the advantages of a local PT company as a foreigner, a local nominee arrangement is required. This involves appointing a local nominee director who will hold full legal ownership of the company.

As a foreigner, your control over a local PT company in Indonesia comes through managing the company’s bank account. While you won’t possess legal ownership, you can oversee the company’s financial operations by handling the account and transactions.

How To Set Up a Local PT Company In Bali, Indonesia

Size of Local PT Companies and Capital Investment

Local PT companies in Indonesia are classified into three categories based on their capital investment:

  • Small Company: Capital investment ranging from IDR 50 million to IDR 500 million.
  • Medium Company: Capital investment ranging from IDR 500 million to IDR 10 billion.
  • Large Company: Capital investment of IDR 10 billion and above.

Requirements for Establishing a Local PT Company

To successfully register a local PT company, it is essential to meet the following requirements. Failure to comply with these criteria may result in an unsuccessful registration.

  • 2 local shareholders: 1 director and 1 commissioner
  • Able to meet the minimum projected investment value, depending on the scale of your business
  • Registered business address

Main Steps of the Process:

  • Company Name Check: Verify the availability of the company name on the Ministry of Law and Human Rights website.
  • Preparation of the Articles of Association: Draft the Articles of Association with the assistance of a notary.
  • The signing of the Articles of Association: Finalize and sign the Articles of Association at the notary’s office.
  • Obtain Core Company Documents: Receive the approved Articles of Association along with related documents, such as ministry approval (SK), company profile, and NPWP (Tax Identification Number) from the tax office.
  • Obtain OSS System Documents: Acquire key documents from the OSS system, including the NIB (Business Registration Number), SPPL (Environmental Management Statement), and PKKPR/KKPR (Spatial Suitability Recommendation).
  • Additional Documentation: Depending on the business risk level (standard, medium, or high), additional permits or documentation may be required.

Assistance and Consultancy

Please feel free to reach out to us for consultations regarding the establishment of Local PT company in Indonesia. We are here to assist you and provide guidance on all the intricacies involved. Our experienced team will demonstrate that the company set-up process can be both simple and straightforward.

To request a consultation, kindly fill out the form by clicking on the button below. This will enable us to match you with the most suitable specialist based on your specific requirements.

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