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APlus Legal & Business Solutions

Frequently Asked Questions

Limited Liability Company (PT)

Covers the fundamental aspects of a Limited Liability Company in Indonesia, including its definition, establishment requirements, ownership rules (local and foreign), capital provisions, governance structure, and obligations.

A Limited Liability Company (PT) is a form of business that has legal entity status, established by one or more persons based on an agreement and to carry out business activities with capital divided into shares, in accordance with applicable laws (Article 1 paragraph 1 of Law Number 40 of 2007 concerning Limited Liability Companies).
The following are the requirements for establishing a Limited Liability Company, both local and foreign-owned: (1) Consisting of at least 2 founders, except for sole proprietorship PT (Article 7 paragraph (1) of the UUPT); (2) Have a deed of establishment certified by a notary (Article 7 paragraph (1) of the UUPT); (3) Identity of the founders and business address (Article 8 paragraph (2) of the UUPT); (4) Determine the authorized capital and paid-up capital; (5) Approval from the Ministry of Law and Human Rights.
Yes, it can. This type of PT is referred to as a Sole Proprietorship PT (Article 153 A of Law 11 of 2020).
In accordance with PERPU No. 2 of 2022 in Article 32 paragraph (2), the authorized capital required for the establishment of a PT is no longer determined by the government, but based on the agreement of the founders as stated in the deed of establishment.
Yes, foreign nationals can establish companies in Indonesia through the Foreign Investment Limited Liability Company (PT PMA) scheme (Article 5 of Law Number 25 of 2007 concerning Investment).
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The minimum capital or investment requirement for PMA is a minimum paid-up capital of IDR 10,000,000,000 (ten billion Rupiah) as stated in Article 7 paragraph (2) of Presidential Regulation No. 10 of 2021.
Yes, every company is required to have a clear domicile (Article 5 of the UUPT).

Yes. The status change is carried out by adjusting the company deed, ownership structure, and re-registering with the OSS (Online Single Submission).

No. The positions of director and commissioner must be held by different persons, in accordance with the PT Law.

Yes. An account in the name of the PT is required to deposit paid-up capital and conduct business transactions.

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Business Licensing

Explains the licensing framework for businesses in Indonesia, including the role of OSS RBA, NIB, KBLI classifications, use of virtual offices, and procedures for updating company information.

NIB is a business identity issued through the OSS (Online Single Submission) system and serves as a basic business license.

OSS RBA (Online Single Submission Risk-Based Approach) is an online licensing system from the government to manage business legality, including NIB, location permits, and operational permits.

KBLI is a business activity classification code. Selecting the appropriate KBLI is very important because it determines the type of license required.

Not all classifications in KBLI can be used by PMA; there are several classifications that do not allow PMA to conduct business activities in those fields. This is regulated in Presidential Regulation No. 10 of 2021 concerning Investment Business Fields and Presidential Regulation No. 49 of 2021 concerning Amendments to Presidential Regulation No. 10 of 2021.

The address can still be changed, provided that the domicile/address in the PT Deed certified by a notary is changed, and the data in the OSS and taxation system is updated.

Yes, for certain types of businesses, virtual offices are permitted under Government Regulation No. 5 of 2021 concerning the Implementation of Risk-Based Business Licensing and various derivative regulations from the Ministry of Law and Human Rights, as well as the Minister of Finance Regulation and the latest taxation policies such as PMK 81/2024 and PER-7/PJ/2025, which allow the use of virtual offices for PKP with certain requirements.

Taxation

Provides guidance on company tax obligations, including filing requirements for newly established businesses and criteria for becoming a Taxable Entrepreneur (PKP).

Not always. At the start of operations, a PT may have zero revenue. However, it is still required to file a tax return, even if there is no activity.

No. Only PTs with a turnover of more than IDR 4.8 billion/year are required to submit an application for confirmation as a PKP to the Directorate General of Taxes.

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Labor Law

Covers the regulations regarding employment in Indonesia, including rules for foreign workers (permits, KITAS, validity), types of employment agreements, and company obligations to create and register company regulations.

Foreign workers can work as private laborers/employees, but companies must still prioritize domestic workers.

Yes, a work permit is required for foreign workers. Work permits for foreign workers in Indonesia involve several administrative and legal stages.

Types of work permits: (1) Foreign Worker Utilization Plan (RPTKA) – Approval document from the Ministry of Manpower allowing companies to employ foreign workers for certain positions and time periods. (2) Limited Stay Permit Card (KITAS) – A physical/digital card proving a TKA has a Limited Stay Permit, required for administrative purposes (e.g., opening a bank account, obtaining an NPWP).

The validity depends on the activities performed, usually 180 days up to 10 years, in accordance with Article 105 of Permenkumham Number 22 of 2023 on Visas and Stay Permits.

Two types of employment agreements: (1) Fixed-Term Employment Agreement (PKWT); (2) Indefinite-Term Employment Agreement (PKWTT).

A company must establish company regulations if it employs 10 or more people, under Article 108 of Law No. 13 of 2003 on Manpower.

Yes, company regulations must be registered and approved by the Minister or designated official (Articles 108 and 112 of the Manpower Act).

Intellectual Property

Explains the scope and types of intellectual property rights in Indonesia, including trademarks, copyrights, patents, and related protections. It also highlights protection durations and the importance of registration for legal security and exclusive rights.

Intellectual property is a right arising from human intellectual work that produces a work or product of economic value.

Types of Intellectual Property: Copyright, Trademarks, Patents, Industrial Designs, Trade Secrets, Geographical Indications, Integrated Circuit Layout Designs, Plant Variety Protection (for agriculture).

A trademark is a sign that can be displayed graphically (image, logo, name, word, letter, number, color, 2D/3D form, sounds, holograms, or combinations) to distinguish goods/services produced by individuals or legal entities (Article 1 point 1 of Law No. 20 of 2016 on Trademarks and Geographical Indications).

Copyright protects creative expressions (songs, art, literature). Patents protect inventions (technology, products, processes, machines).

- Trademarks: 10 years, extendable (Art. 35, Law No. 20/2016).

- Copyrights: Lifetime of creator + 70 years after death (Art. 58(1), Law No. 28/2014).

- Patents: 20 years from acceptance (Art. 22, Law No. 13/2016); Simple patents: 10 years (Art. 23, Law No. 13/2016).

Yes, registration provides legal protection for exclusive rights, prevents misuse/claims by others, and ensures control over use, production, or licensing of the work/brand.

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