What is an Indonesian legal entity?

A PT is a legal entity comprised of shares that must be established by at least two shareholders. The PT is the most common form of business vehicle because of the limited liability of shareholders and a clear capitalisation regime. A PT can be a publicly-listed company or a privately-owned company.

What does legal entity type mean?

A legal entity is any company or organization that has legal rights and responsibilities, including tax filings. It is a business that can enter into contracts either as a vendor or a supplier and can sue or be sued in a court of law.

Why do Indonesian companies start with PT?

Also known as a foreign investment limited liability company, a PT is a business entity that allows foreign investors to conduct commercial activities in Indonesia. Any Indonesian company that directly receives foreign investments must take the form of a PT.

What is a legal entity company?

Meaning of legal entity in English

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a company or organization that has legal rights and responsibilities, for example the right to make contracts and the responsibility to pay debts: All companies whose affairs are regulated by the Corporation Act are legal entities.

What does PT mean for Indonesian companies?

PT is the abbreviation of Perseroan Terbatas, a limited liability company whose capital is divided into shares and the responsibility of shareholders based on the number of shares that he or she has.

What is the difference between legal entity and legal employer?

Legal entity cannot be a legal employer. Legal employer contains PSU(Payroll Statutory Unit). PSU(Payroll Statutory unit) is “legal entity” that are responsible for paying workers, including payment of payroll tax and social insurance.

What is the difference between legal entity and company?

A company is a “Separate Legal Entity” having its own identity distinct from its members. As a legal entity, a company can own a property in its own name, can sue and be sued in its own name and also enjoys perpetual succession, among others.

Can a foreigner own a business in Indonesia?

Local Company (PT) in Indonesia

Under Indonesian law, a foreigner cannot wholly own a PT, which can only be owned by Indonesian citizens. … While there are some legal hoops to jump through, PTs enjoy certain legal benefits over other types of business. PT founders can take advantage of lower incorporation costs.

How do I set up a PT company in Indonesia?

The Process Of Setting Up A Local PT. In Indonesia.

  1. Approval of company name at the Ministry of Law and Human Rights. …
  2. Preparation of Association Article by Notary. …
  3. Obtain Deed of Establishment at the Ministry of Law and Human Rights. …
  4. Obtain Certificate of Domicile at the local government office.
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What does CV mean in Indonesia?

Commanditaire Vennootschap (CV): The CV is very common in Indonesia, and is basically a limited liability partnership.

What is legal entity status?

A legal entity is an individual, company, association, trust, partnership, proprietorship, corporation, or organization that is recognized as having certain legal rights and obligations with the legal capacity to sue and be sued in its own right, be accountable for illegal activities, enter into agreements or contracts …

What is name of legal entity?

Your ENTITY NAME is the legal name of your business. For example: Acme Corp. or Wayne Enterprises, Inc. This is how you sign your contracts. It’s the entity that owns your bank accounts and assets, and it’s the legal “person” that has liability for your activities.

Why do we say a company is a legal entity?

The law treats the company as a legal artificial person because it has its name and bank accounts. It can also own property under its name, file a lawsuit against other companies or personals, or be partnered up with other companies.

What does PT mean in court terms?

Getting a case on the pretrial docket starts this process. Sometimes this is followed up by a judicial pre-trial, where a judge, who will not try the case, acts a mediator to see if a plea can be reached. If you are unable to resolve the charges, your case will be placed on the jury list and you are going to trial.

Why do investors invest in Indonesia?

Indonesia is your investment destination. Abundant natural resources, a young and technically trained work force and a large and growing domestic market, combined with an improving investment climate and a higher global profile, are just a few of Indonesia’s salient strengths.

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How much does it cost to set up a company in Indonesia?


Different Indonesia entity types Cost Draft invoice
100% wholly foreign owned trading LLC US$19,440 View invoice PDF
Representative office US$19,250 View invoice PDF
PT company US$13,500 View invoice PDF
Free zone US$18,100 View invoice PDF