START NOW – Understanding the Limited Liability Company establishment stages is important especially for you who want to start a new one.  

There are three kinds of Limited Liability Company (PT), namely individual, public, and foreign. Each of them has different company establishment stages. 

Company Establishment Stages of an Individual PT

Individual PT is a form of business that allows an individual to establish a limited liability company. 

This is a privilege because the establishment of a PT must generally be done by a minimum of two people.

The stages of establishment an Individual PT include: 

Document Preparation

The documents needed to establish a company including KTP, NPWP, and other documents that may be requested by the notary. 

It is important to ensure all documents are in good condition and in accordance with the requirements.

Reservation of PT Name

The name of PT must be unique and have not been used by another company. So, you should make a reservation first. 

You can do it through the Business Entity Administration System (SABU) at the Ministry of Law and Human Rights (Kemenkumham). 

The name chosen must meet certain requirements, including not being offensive or containing racial or ethnic slurs.

Deed of Establishment by Notary

Once the name is approved, the next step is to have the deed of establishment drafted by a notary. 

This deed includes the company’s articles of association and other important matters related to the PT’s operations.

Notarization of the Deed of Establishment

The deed of establishment of this company hereinafter must be legalized by the Ministry of Law and Human Rights. 

This process involves online submission and usually takes a few working days.

NPWP and Company Domicile Certificate (SKDP) Processing

Once the deed is legalized, the next step is to apply for the Taxpayer Identification Number (NPWP). 

You must also obtain an SKDP or Company Domicile Certificate from the head of local neighborhood (RT and RW). 

These two documents are important for PT operations, including taxation and licensing.

Business License Registration

The last point of company establishment stages for individual PT is registering business licenses. You can do it through the Online Single Submission (OSS) website. 

Once the business license is issued, the individual PT can start operating legally.

Company Establishment Stages of a Public PT

A Public PT is an original one whose establishment involves more than one person. The company establishment stages of the Public PT including: 

Formation of the Founding Team

The initial stage is the formation of a founding team that usually consists of at least two people. 

This team is responsible for preparing everything necessary for the establishment of the PT.

Reservation of PT Name

The process of reserving the name of a PT is the same as an individual PT. You can do it through the SABU website. 

Drafting the Deed of Establishment by a Notary

The founding team then will work with a notary to draft the deed of establishment for the new Public PT. 

This document includes the articles of association and organizational structure of the company. All founders will need to sign this document.

Notarization of the Deed of Establishment

Once the deed of establishment is drafted, you must apply for legalization to the Ministry of Law and Human Rights. 

You can do it online and will have to wait for a few working days.

NPWP, SKDP, and NIB Processing

Once the deed is legalized, the Public PT must apply for some basic business licenses, such as:

• NPWP
• SKDP
• NIB (Business Identification Number) 

These three documents are important for smooth operations and regulatory compliance. You can register it through the OSS website. 

Other Business License Registration

Depending on the business sector, a public PT often requires several additional business licenses. This business license covers various aspects, including:

• Location permits
• Environmental permits
• Other operational permits relevant to the type of business sector

Company Establishment Stages of a Foreign PT

As the name implies, foreign PTs are companies owned by foreign nationals or foreign legal entities and operate in Indonesia. 

To protect the interests of local entrepreneurs, the government has set some additional rules and requirements for foreign PTs.

That’s why the company establishment stages for a Foreign PT is more complex than the others, including: 

Formation of the Founding Team

As with Public PTs, Foreign PTs also need formation of a founding team. This team usually consists of foreign and local representatives (collaboration). 

Reservation of PT Name

The name of the foreign PT can also be reserved through SABU with the same process as the other PTs. 

However, it must be ensured that the name complies with applicable regulations and does not offend any party.

Drafting the Deed of Establishment by a Notary

The deed of establishment of a foreign PT is drafted by a notary public. It should include the articles of association of the company. 

Other provisions relevant to the operations of the foreign PT must also included in this legal document.  

Then, all of the founders, both domestic and foreign, must sign it. 

Ratification of the Deed of Establishment

The draft of the deed of establishment then must have a legalization from the Ministry of Law and Human Rights. 

This process can be done online and usually takes a few working days.

Principle License from BKPM (Investment Coordinating Board)

One of the company establishment stages that a foreign PT complete is obtain a principle license from BKPM. 

The process involves the submission of various documents and requirements that must be met by the founder.

After receiving this license, the Foreign PT can legally operate in Indonesia. 

NPWP, SKDP, and NIB Processing

Just like the other, Foreign PTs also need to have NPWP, SKDP, and NIB as basic business licenses. 

These documents are important for smooth operations and compliance with applicable regulations. Foreign PTs can obtain it through OSS website. 

Business License Registration

Foreign PTs generally also require a number of additional business licenses, in accordance with their business sector.

By completing the company establishment stages described above, you can ensure your company is well established and can operate smoothly.