Foreigner wanting a PT Perorangan
I am a foreigner. Can I set up a PT Perorangan?
The situation
No. Only an Indonesian citizen aged 17 or more can found a PT Perorangan.
The law
- Art 153A to 153J, Law 40/2007 on Limited Liability Companies (UUPT), as amended by Law 6/2023: A PT meeting micro and small business criteria may be founded by one Indonesian citizen through an electronic statement of establishment
- PP 8/2021 on authorised capital and registration of PT for micro and small businesses: Sets the PT Perorangan rules: Indonesian founder aged 17 or more, statement of establishment and online financial report
What it means for you
Foreign investors must use a PT PMA with at least two shareholders and the PMA capital rules. A PT Perorangan held by an Indonesian for a foreigner would be a nominee arrangement, which is void.
What to do
- Use a PT PMA structure.
- Check the investment list for your KBLI.
- Plan capital of at least IDR 2.5 billion paid up.
- Avoid nominee arrangements.
Nominee set ups give the foreigner no legal protection.
We can do this for youPT Perorangan for micro and small businesses: set up, annual report and when to convert: IDR 4.500.000