Personal liability in a PT Perorangan
If my PT Perorangan has debts, can creditors take my house?
The situation
A PT Perorangan is a legal entity, so its debts are generally its own. Limited liability can be lost if you mix personal and company assets or act in bad faith.
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
What it means for you
Keep a separate bank account, sign contracts in the company's name, and keep books. Courts can look through the company if it is used as a personal tool. Tax debts can also reach directors in some cases.
What to do
- Open a company bank account.
- Sign all contracts as the PT.
- Keep books and receipts.
- Do not use company money for personal costs.
Mixing money is the main way founders lose 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