So you want to establish a company in Indonesia. Before talking about how to deposit your paid-up capital, where you want to establish your office, the first thing all investors will have to know is one simple essential thing: the Company Name.
Choosing a Company Name is the crucial first step in establishing a company. With the importance of branding your business becoming more and more prominent, a company name which represents your business brand perfectly is a perfectly good asset. And also, once you have used a specific company name, nobody else can have the same company name as you do, since it is registered to the Ministry of Law and Human Rights.
Here are the 5 (five) things you need to know regarding how to name your company in Indonesia:
- A COMPANY NAME IS COMPOSED OF 3 (THREE) WORDS OR MORE
- LOCAL COMPANY MUST BE NAMED IN BAHASA INDONESIA
- PMA COMPANY CAN BE NAMED IN ENGLISH
- ALL COMPANY NAMES START WITH “PT”
The first thing in this list is actually an unwritten discretion. To register a Company in Indonesia, the Company Name must be composed of 3 (three) words or more. There is actually no official regulation which regulates this. However, in order to book a company name, you must first apply to the Legal Entity Information System, set up by the Directorate General of General Legal Administration.
The application will be verified by the system, to ensure that the name has not yet been used, or is dissimilar enough from other company names previously applied for. From SMART reliable sources, which are the Public Notary who commonly uses this system, the system rejects company name applications which are only composed of 2 (two) words.
TIP: Once the company name is approved by the Legal Entity Information System, the company name is booked for your company for 60 (sixty) days, before the end of which, you and the other shareholders must have already executed the Deed of Establishment of the company, to ensure that the name remains with you.
Pursuant to Article 36 (3) Law No. 24 of 2009 concerning Languages, it is mandatory to use Bahasa Indonesia to name buildings, roads, apartments or housing, office buildings, trade names, business entities, educational institutions, and organizations which are established or owned by Indonesian nationals or Indonesian legal entities.
This includes local limited liability company(PT) which shares are fully owned by Indonesian nationals and/or Indonesian legal entities.
To our knowledge, limited liability companies which shares are foreign-owned (PT PMA), whether fully owned or jointly owned by foreigners and locals, can be named in English and/or any other languages aside from Bahasa Indonesia.
PT or Perseroan Terbatas is translated literally to Limited Liability Company. All company names in Indonesia is preceded by PT, and therefore will read as “PT ……” once the name is finalized. The company name will show in its Articles of Associations, and also in the related permits and licenses owned by the company.
It is important to note that when drafting for a company name, the “PT” is not included as one of the three required words to name a company. So, if you want to name your company “SMART Legal Consulting”, the full name of your company is “PT SMART Legal Consulting.”
HOW CAN SMART CONSULTING HELP YOU?
To ensure a smooth investment and business operation from the legal perspective, but also still focus on maintaining your business in Indonesia and reach your revenue target, it is advised for you to find capable and trusted lawyers or legal consultants for advice and assistance in ensuring your legal compliance with prevailingtrading laws and regulations.
SMART Consulting is an Indonesian Corporate Legal Services firm. We have assisted local and multinational companies in handling their corporate legal matters, including matters related to company obligations, such as preparing shareholders general meetings and resolutions, as well as acting in a legal advisory capacity for the company.
Contact Us Now to get your legal solution for your business goals, and still comply with the prevailing laws and regulations.