Esponel (es)
Türkçe (tr)
Russian (ru)
한국인 (kr)
Italiano (it)
हिंदी (in)
عربي (ar)
Français (fr)
Deutsch (de)
日本 (jp)
中国人 (cn)
CandleFocus Glossary Editor.png)
A Perseroan Terbatas (PT) is a type of business entity in Indonesia that allows foreign investors to conduct a business that generates revenue in the country. It is structured the same way as a limited liability Company (LLC) in the United States, but has substantially different regulations that must be followed to maintain legal compliance.
In order to be legally constituted as a PT, or limited liability company, it must adhere to Indonesian laws and regulations set forth by the Ministry of Law and Human Rights (MOLHR) in Chapter V of the Indonesian Companies Law (ICL). This includes obtaining all necessary permits and licenses, meeting all the requirements for tax registration and annual financial reporting, and even notifying the MOLHR of any changes to the company’s legal registration.
One unique feature that distinguishes PTs from LLCs in the United States is the ability to issue public stock, allowing any person interested in investing in a PT to purchase shares in the company. This is especially beneficial for PTs wishing to maximize their capital and gain additional financing. Additionally, some PTs make their shares available on publicly traded stock exchanges, adding to the investment appeal.
There are several different types of PTs that can be formed in Indonesia, differentiated primarily based on the total number of shareholders or owners. Open PTs have an unlimited number of shareholders, whereas closed PTs only have a maximum number of up to 50 shareholders. Domestic PTs are controlled by shareholders of Indonesian origin, whereas foreign PTs have majority shareholder ownership comprised primarily of individuals not of Indonesian origin. Individual PTs are owned by one specific individual, whereas general public PTs are only created by or for a special purpose and are not available to the public in the same way as listed stocks.
In conclusion, forming a Perseroan Terbatas (PT) in Indonesia is a wise choice for foreign investors looking to conduct a successful business endeavor in Indonesia. PTs are similar to LLCs in the United States in terms of structure, but their regulations and the ability to issue publicly traded stocks makes them different and a more attractive investment. It is important for foreign investors to familiarize themselves with the different types of PTs and the laws and requirements of forming and running a business in Indonesia to ensure long term success.
In order to be legally constituted as a PT, or limited liability company, it must adhere to Indonesian laws and regulations set forth by the Ministry of Law and Human Rights (MOLHR) in Chapter V of the Indonesian Companies Law (ICL). This includes obtaining all necessary permits and licenses, meeting all the requirements for tax registration and annual financial reporting, and even notifying the MOLHR of any changes to the company’s legal registration.
One unique feature that distinguishes PTs from LLCs in the United States is the ability to issue public stock, allowing any person interested in investing in a PT to purchase shares in the company. This is especially beneficial for PTs wishing to maximize their capital and gain additional financing. Additionally, some PTs make their shares available on publicly traded stock exchanges, adding to the investment appeal.
There are several different types of PTs that can be formed in Indonesia, differentiated primarily based on the total number of shareholders or owners. Open PTs have an unlimited number of shareholders, whereas closed PTs only have a maximum number of up to 50 shareholders. Domestic PTs are controlled by shareholders of Indonesian origin, whereas foreign PTs have majority shareholder ownership comprised primarily of individuals not of Indonesian origin. Individual PTs are owned by one specific individual, whereas general public PTs are only created by or for a special purpose and are not available to the public in the same way as listed stocks.
In conclusion, forming a Perseroan Terbatas (PT) in Indonesia is a wise choice for foreign investors looking to conduct a successful business endeavor in Indonesia. PTs are similar to LLCs in the United States in terms of structure, but their regulations and the ability to issue publicly traded stocks makes them different and a more attractive investment. It is important for foreign investors to familiarize themselves with the different types of PTs and the laws and requirements of forming and running a business in Indonesia to ensure long term success.