How to Register a Business Name in Indonesia?

Corporate Secretary Service – The name of a PT or company must be as interesting as possible to make it attractive, but it is important to choose it carefully to avoid rejection. In Indonesia, there are a number of different business entities that can be established, including Perseroan Terbatas (PT), firms, foundations, and Commanditaire Vennootschap (CV).

Nevertheless, the majority of business owners continue to select PT as their preferred option. It is therefore crucial to select an appropriate name for a limited liability company at the outset of a business venture. A company name is a valuable asset for any business. A company name is not merely an identifier; it also reflects the values, reputation, and vision of the company.

While the process may appear straightforward, many individuals encounter challenges when attempting to select an appropriate name for their PT. The establishment of a PT can be hindered if the name does not comply with the relevant provisions or has already been used. This is governed by Law Number 40 Year 2007 on Limited Liability Companies (PP 40/2007), as amended by Law Number 6 Year 2023 on the Stipulation of Government Regulation in Lieu of Law Number 2 Year 2022 on Job Creation into Law (Law 6/2023).

Rules on the Use of PT Name

Article 109, number 1 of Law 6/2023, which amends Article 1, number 1 of Law 40/2007, defines a PT as a legal entity that is a capital partnership, established based on an agreement, conducting business activities with authorized capital that is entirely divided into shares or individual legal entities that meet the criteria of micro and small businesses as stipulated in laws and regulations regarding micro and small businesses.

The company name must begin with the phrase “Limited Liability Company” or be abbreviated as “PT.” If the company is a public company, in addition to adding “PT” in front, the abbreviation “Tbk” is also added at the end (Article 16, paragraphs (2) and (3) of Law 40/2007).

In the case of limited liability companies owned by Indonesian citizens or Indonesian legal entities, the name of the PT must be in Indonesian (Article 11 of GR 43/2011).

Read Also: Can Foreigners Own Business in Indonesia?

The proposed name of the company must comply with the requirements set forth in Article 5, paragraph (1) of GR 43/2011:

1. The name should be written in Latin letters, for example: PT Maju Sukses Jaya
2. Not currently in use by another company and does not infringe upon the name of another company.
3. It is not contrary to public order or decency and does not resemble the name of a state, government, or international institution, unless authorized by the relevant institution.
4. It is not comprised of numbers or letters that do not form a word. The company name should be written in full as “PT”.
5. The company name should be in the form of a number followed by a letter, for example, 112233, PT. AB BC CD;
6. Does not indicate the type of entity, such as a company, legal entity, or civil partnership. PT. CV Sukses, PT. Yayasan Maju
7. The company name is not simply a reflection of the company’s purpose, objectives, and business activities. Rather, it is a representation of the company’s identity and serves to distinguish it from other entities.
8. In alignment with the company’s purpose, objectives, and business activities, the name should accurately reflect these core elements.

PT Name Submission Procedure

Once you have verified that the proposed PT name meets the necessary requirements, the next step is to submit the application. The application procedure is as follows in general: (Article 3 of PP 43/2021)

• The applicant is required to submit the name of the PT to the Minister of Law and Human Rights prior to the establishment of the company or prior to any amendments to the articles of association pertaining to the company’s name.
• The proposed name may include an abbreviation of the company name, if applicable.
• The PT name filing process is conducted electronically via information technology services, specifically through the Legal Entity Administration System (SABH).
• In areas without internet access, the filing can be made in writing by sending a registered letter.

In this context, the applicant may be any of the following parties: (Article 1, point 3 of GR 43/2011)

• The founders together;
• The Board of Directors of the company that has officially become a legal entity; or
• The attorney-in-fact, who is usually a notary public.

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