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When a PT Perorangan must convert

Bisnis saya makin besar. Kapan PT Perorangan harus berubah jadi PT biasa?

The situation

A PT Perorangan must convert to a regular PT if it adds shareholders or no longer meets micro and small criteria.

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 7/2021 on ease, protection and empowerment of MSMEs: Micro: capital up to IDR 1 billion or sales up to IDR 2 billion; small: capital to IDR 5 billion or sales to IDR 15 billion; medium: capital to IDR 10 billion or sales to IDR 50 billion

What it means for you

Small business means capital up to IDR 5 billion excluding land and buildings or yearly sales up to IDR 15 billion. Once over, or when a second shareholder joins, convert by notarial deed. Tax status changes too: the regular PT loses 0.5 percent eligibility.

What to do

  1. Check capital and sales each year.
  2. Plan conversion before adding partners.
  3. Sign a notarial deed of change.
  4. Update OSS and tax set up.

Staying as PT Perorangan when not eligible can lead to loss of status.

We can do this for youPT Perorangan for micro and small businesses: set up, annual report and when to convert: IDR 4.500.000

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