As is known, the government through the Job Creation Law has made a new breakthrough where business actors can develop their business individually through a business entity called an Individual Limited Liability Company (PT).
This Individual PT is specifically for Micro and Small Businesses (MSEs). Thus, they also have the opportunity to obtain the same legal certainty as business entities in general. With the existence of the work copyright regime, the types of companies are divided into two, namely the capital partnership PT (ordinary PT) and Individual PT for MSEs (Individual PT). So, what is the basic difference between an Individual PT and an ordinary PT?
Overview of PT Biasa
Article 1 of Law No. 40 of 2007 (UU PT) defines a PT as a legal entity formed by agreement and capital alliance. The characteristics of a PT, which is a legal entity of capital alliance, require that the establishment of a PT must be carried out by 2 or more people. Where later each of the founders of the PT must take part in the shares when the PT is established (Article 109 number 2 of the Job Creation Law which amends Article 7 of the Company Law). Because of this, the establishment of an ordinary PT must be made based on an agreement. Where the agreement must be poured into an authentic deed before a notary using Indonesian language. The establishment of a PT must also be made at a notary to then obtain authorization from the Minister of Law and Human Rights (Menkumham), in order to have the status of a legal entity.
Overview of Individual Companies
Based on Article 1 of Government Regulation (PP) No 8 of 2021, an individual company or PT Perangan is a Limited Liability Company (PT) which is an individual legal entity that meets the criteria of Micro and Small Enterprises (MSEs). Because it is an individual legal entity, there is only one shareholder who also acts as the board of directors. If there is more than one shareholder, it must change its status to a regular PT. From this explanation, an individual PT can only be established if its business is included in the MSE criteria specified in Article 35 of PP No. 7 of 2021.
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Individual PTs are often considered more special than regular PTs because they can be established without a notarial deed. In addition, the establishment cost is also cheaper because it can be done by yourself without the help of a notary.
What is the difference between a regular company and an individual company?
After knowing a glimpse of the definition of a regular PT and an Individual PT, let’s further see what are the differences between the two. This can be used as a reference for choosing the form of your business entity!
| Aspects | PT Biasa | PT Individual |
| Number of Founders | As stipulated in Article 7 of the PT Law, the process of establishing an ordinary PT must be established by a minimum of two Indonesian citizens, who act as directors and commissioners. | Meanwhile, as stated in Article 153@ of Law No. 6 of 2023, an Individual PT can be established by one Indonesian citizen, who acts as a personal shareholder as well as director and management of the company. |
| Capital and Turnover Limits | Now the establishment of an ordinary PT is no longer determined by a minimum figure for its authorized capital. This is as stated in Article 109 paragraph (3) of Law 6/2023. | Individual PTs also do not have a minimum authorized capital. However, the authorized capital for Individual PTs is only limited to Rp5 billion considering the scale of MSEs. |
| Form of Legality Document | In the establishment process, a PT usually requires the services of a notary to make an authentic deed through the General Legal Entity Administration System (AHU Online). | The establishment document of an Individual PT is the Certificate of Establishment which can be processed through the PTP AHU Online page. Thus, an authentic deed made by a notary is not required in the process of establishing an Individual PT. |
| Dissolution | Dissolution of a PT usually occurs under conditions such as based on a GMS resolution, the period of establishment has been stipulated in the articles of association, and based on a court decision and bankruptcy. | Dissolution in an Individual PT is carried out by filling out the electronic dissolution statement form through SABH. |
That’s the difference between a regular PT and an Individual PT. So, which type of PT is most suitable for your business?
KH Contact
Well, whatever type of PT that KH Friend will establish, entrust the management and establishment with Kontrak Hukum. We can help you to establish a business entity both ordinary PT and PT easily and safely, including the required legality documents such as SK, NIB, OSS, and NPWP.
READ ALSO: Let’s Understand the Terms and Procedures of Individual Company Establishment Here!
All our services are also performed to a high standard in-house by authorized and experienced legal professionals. So, what are you waiting for? Entrust your PT establishment by visiting the KH Services – PT Establishment page. If you still have questions, you can also contact us at Ask KH or send a direct message (DM) to Instagram @kontrakhukum.
