Start Now – Recently, the government has simplified the requirements for a new LLC. Now, more entrepreneurs have the opportunity to set up that type of company.

If you are one of them, then it is important that you know the requirements for a new LLC. 

What Is an LLC?

Before learning about the requirements for a new LLC, it’s a good idea to understand what they are first. 

LLC or Limited Liability Company is a company with legal entity status which is formed due to capital alliance. 

That’s why an LLC is usually established by at least two people based on an agreement to do business together.

However, the government has recently established a new type of LLC named Individual LLC. This LLC can be established by a single person.

To qualify, the founder of this Individual LLC must be classified as a small or micro business.

In addition, there are also types of LLCs for foreign invested companies called Foreign Investment LLC (PT PMA). 

The requirements for PT PMA have been regulated by the government to protect the interests of local entrepreneurs.

What Are The Latest Requirements For A New LLC?

Overall the requirements for a new LLC, whether it is an individual or general LLC, are not much different, namely: 

Preparing the LLC Name

First, you should prepare a name for the LLC that contain at least three syllables in Indonesian using proper spelling. 

You are not recommended to use foreign words that have not been recognized by the language agency. 

Furthermore, the most important thing is that name must not already be used by another company.

Ensuring the Company Location and Domicile 

The next step is to determine the place and position of the PT and its legal domicile. 

You must have a certificate explaining the domicile of the company where the exact address is located called SKDP. 

Especially in the DKI Jakarta, the domicile of the company may not use a residential address. You must establish it in a designated work zone.

Determine the Purpose and Objectives of Creating an LLC 

The next requirements for a new LLC is to determine the purpose and objectives of establishing the company. 

Some important things you need to note and write down in this regard include:

• The field of business that will be running must be clearly written in the deed of establishment of PT.
• You can determine the line of business in accordance with your purposes, except those listed in the prohibited provisions. 

Qualified the LLC’s Capital Structures

Based on Job Creation Law, there is slight difference regarding the requirements for individual LLC, regarding its capital structure.

Generally, LLC establishment requires a minimum initial capital of IDR 50 million, but this does not apply to individual LLCs.

Prospective founder of an individual LLC are free to determine his or her own capital amount according to the ability.

Formulate a Management Structure of the LLC 

In general, the LLC management structure should consist of two elements, namely directors and commissioners. Each of these positions has duties and responsibilities.  

If there’s more than one person holding the director position, then, there must be an appointment of the President Director. 

The same thing will also applies to the position of commissioner, by appointing th president commissioner or main commissioner. 

The director is responsible to carry out the day-to-day operational procedures of the company. This includes taking legal actions such as signing contracts, giro,etc. 

The commissioner, on the other hand, does not have the right to act on behalf of the company. 

Instead, they have the specific task of advising the directors so that they can always run the company properly.

In an individual LLC, the founder and sole shareholder will hold all positions.

Making a Deed of Establishment of PT at a Registered Notary

Another difference between the requirement to create an individual LLC and a general one is the deed of establishment.

A notarial deed of establishment is one of the requirements to create an LLC or LC (Limited Company)

You should also note that in the event of signing the notarial deed, all founders must be present.

If they are unable to do so, they must authorize a lawyer to represent them in signing.

Meanwhile, specifically for individual LLCs, their establishment does not require a notarial deed of establishment. All you need to do is make a declaration letter.

Apply for Ministerial Approval of New Company Establishment

Once you have the official documents supporting the establishment of your LLC, you can apply for its ratification. 

The party authorized to provide this ratification is the Ministry of Law and Human Rights. The application process can be done online through AHU website. 

It is an online public service system that provided by the Directorat General of General Legal Administration.

Next, you just have to wait until the process of the decision letter of legalization of the LLC is completed.

If the decree has been issued, it means that the state has recognized the existence of your company.

Apply for a Taxpayer Identification Number  

Because the LLC has become a legal entity, it has inherent rights and obligations forever. Among other things, there is a requirement to pay taxes. 

Therefore, the company should has a Taxpayer Identification Number (NPWP). You can apply it through the tax office according to its domicile or online. 

Apply for Business Licenses

All existing business activities must be complete with a business license. This will be the last requirements for a new LLC you should complete. 

Just like the requirements for a new LLC, the government has also simplified the business license requirements.

Based on the latest regulations, the types of business licenses you need to have include NIB and Standard Certificate.

NIB stands for Business Identification Number which serves as your company’s identity number. You can register for this business license online through the OSS website. 

OSS stands for Online Single Submission. You can also use this website to register for BPJS Ketenagakerjaan.

By fulfilling all the requirements for a new LLC, your company establishment process will undoubtedly go smoothlys.