A Perseroan Terbatas (PT) or a Company is a business entity that allows investors to conduct commercial activities in Indonesia. Perseroan Terbatas (PT) is the type of legal entity that a local or foreign company or local or foreign individual must use to run a revenue-generating business in Indonesia. For foreign companies or individuals, also known as a foreign investment limited liability company.
PT is a business entity most liked and chosen by businesspeople than other legal entities. PT can be used as a vehicle to run businesses and generate revenue from local and foreign investors. Many people choose PT because of the clarity of its legal entity status given by the law (Undang-Undang Nomor 40 Tahun 2007 Tentang Perseroan Terbatas). Because of this, PT has been accepted by all parties (practitioners, academics, and entrepreneurs) to do business in Indonesia.
The benefits of a company are income diversification, flexibility in doing business, ease of transfer of the company’s ownership, and legitimacy from the government. Another advantage of companies is that they create jobs. If the company grows, they often have to hire employees, which increases the number of jobs available, reduces unemployment, and contributes to the nation’s economy.
PT is established based on an agreement between two or more parties and is made using a notary deed. Furthermore, the established company must get approval from the Ministry of Law and Human Rights. Shares can prove the ownership in PT. The shares can be traded to others, which in doing so, changes the ownership of the company.
There are two types of PT in Indonesia, and each two has its characteristics. The two types are as follows
In order to establish a company in Indonesia, there are four simple steps that you need to do:
There may be extra steps involved in setting up a company, depending on your situation. For example, for NIB, depending on the risk level of your business activities, you may need to apply for a standard certificate for your company.
Setting up a company takes a reasonably short time. You can start once you have all the documents and the data needed to make a notary deed. The notary deed and the approval can be done in 5 working days. After receiving approval from the ministry of law and human rights, you can start applying for NPWP through online registration. Once you have the NPWP, you can start processing the NIB, which can be done online. All those processes can be done in 7 to 10 working days.
Undang-Undang Nomor 40 Tahun 2007 Tentang Perseroan Terbatas
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