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Signing contracts before the PT is approved

Can I sign a lease for the PT before the Ministry approval comes?

The situation

A PT becomes a legal entity on registration with the Ministry of Law. Acts before that bind the founders until the PT ratifies them.

The law

  • Art 7, Law 40/2007 on Limited Liability Companies (UUPT), as amended by Law 6/2023: A PT is founded by 2 or more persons by notarial deed in Indonesian and becomes a legal entity on registration with the Minister of Law

What it means for you

If you must sign before approval, sign as founder for the PT in formation, and have the GMS ratify it after approval. Otherwise you are personally liable. Since approvals are fast online, it is usually better to wait a few days.

What to do

  1. Wait for the SK if possible.
  2. If not, sign as founder for the PT in formation.
  3. Ratify by GMS after approval.
  4. Keep the ratification resolution.

Landlords may refuse a lease with an unapproved company.

We can do this for youSetting up a local PT (PT PMDN): deed, Ministry of Law approval, NIB and NPWP: IDR 9.500.000

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