Local Limited Liability Company
In Indonesia a Limited Liability Company is called a Perseroan Terbatas (PT).
Local Limited Liability Company
- No business sector restrictions apply for almost any type of business activity.
- Conversion of PT to PMA possible.
- Low start up costs and investment requirements.
- Short set up process.
- Direct foreign directorship restricted.
- Direct foreign ownership prohibited.
- Strict foreign work permit application process.
As a foreigner, choosing a Local PT as your business vehicle will provide you the opportunity to be active in any business sector in Indonesia.
To do so, you need to team up with suitable local partners to jointly own and run your business.
If you do no want to delegate all management powers to a local director, you have the option of appointing a passive director. In that case, AdvintA can assist in drafting the nominee directorship agreement, wherein the Indonesian party is the non-acting director, leaving the management decisions and financial control to the foreign party.
A local PT is required if you want to conduct business in a sector which is completely prohibited for foreign shareholders.
In that case, AdvintA can assist in drafting a nominee shareholder agreement, wherein the Indonesian party is the juridical owner, appointing the foreign party as the beneficiary of the shares in the PT.
When setting up a local PT, AdvintA can help you in securing the appropriate agreements between you and your Indonesian business partners.