When creating a name, including for a Limited Liability Company (PT), of course you want it to be unique and can be easily remembered by many people. Moreover, the choice of PT name is very important because the name will be the identity attached to the company.
In addition, the name of the PT is also one of the requirements to establish the PT itself. Yes, apart from how to choose a company name that is as interesting and ‘sold’ as possible, the name of the PT must also comply with applicable regulations in Indonesia.
This is stated in Government Regulation (PP) No. 43 of 2011 concerning Procedures for Filing and Using the Name of a PT. Where this provision regulates the provisions of PT names that can be used. If the proposed PT name does not comply with the requirements, the PT name application will be rejected.
Related to this, you might be wondering, are PTs allowed to use names in English or other foreign languages? Check out the answer in the following article.
Terms Name of PT
In the establishment of a PT, there is basically no explicit prohibition to use a company name in a foreign language.
Yes, Article 16 paragraph (1) of Law No. 40 of 2007 concerning Limited Liability Companies (UU PT) provides freedom in the selection of company names, which cannot be used as the name of a PT:
- using the same or similar name as another Company that has been legally registered or used previously;
- violate public order and/or norms of decency;
- have similarities or similarities with the names of state institutions, government institutions, or international institutions, unless permission is obtained from the institution concerned;
- does not reflect the purpose, objectives or business activities of the Company, or only states the purpose of the Company without the identity of the company itself;
- consists of numbers or combinations of numbers, letters or letter combinations that do not form meaningful words;
- implies that the company is a Company, a legal entity, or a civil partnership.
However, Article 11 of Government Regulation No. 43/2011 on the Procedures for Transferring and Using the Name of a Limited Liability Company (PP 43/2011) provides further regulation in this regard.
Where if all PT shares are owned by Indonesian citizens or Indonesian legal entities, it is mandatory to use a name in Indonesian.
In addition, GR 43/2011 also stipulates that the name of the PT must comply with other requirements, including writing in Latin letters. If the name of the PT is accompanied by an abbreviation, the abbreviation can be a first letter or an acronym of the PT’s name.
Furthermore, the government has reaffirmed the use of Indonesian in the naming of PTs through Presidential Regulation Number 63 of 2019 concerning the Use of Indonesian Language (PP 63/2019).
In the regulation, it is clearly stated that the obligation to use Indonesian language in a PT only applies to companies whose shares are wholly owned by Indonesian citizens or Indonesian legal entities.
However, if a company has significant historical, cultural, customary and/or religious values, it is permitted to use local or foreign languages in its naming, provided that the writing is done in Latin script.
How to Apply for a PT Name
From the explanation above, it can be concluded that if a Domestic Investment Company (PMDN) submits a name with foreign language elements, the Ministry of Law and Human Rights will reject the submission of the company name (Article 6 of PP 43/2011). However, if a Foreign Investment Company (PMA) submits the name, it is allowed.
The next step, business actors can apply for and use PT with the following procedures:
- The filing of the name of the PT must be submitted by the applicant before the company is established or before any amendment to the articles of association regarding the name of the PT is made.
- PT name submission is done online through the General Legal Administration System (AHU).
- For certain areas where electronic networks are not yet available, the submission can be made in writing using a registered letter.
It should also be understood that the Ministry of Law and Human Rights has the right to revoke the naming license that has been granted if in the future it is deemed to violate certain regulations.
KH Contact
This is the explanation about the use of foreign languages for PT names. Want to establish your own PT but still confused about how to do it? Troublesome because you have to think about the name of the PT and its submission, not to mention related to the management of the establishment of the PT itself and its legality documents?
Leave all the management of your PT establishment to Kontrak Hukum! We provide the most complete PT establishment service including the required legality documents such as deed of establishment, NIB, OSS, and NPWP.
For ordering information, please visit
KH Services – PT Establishment
. Or if you still have questions about PT or other business entities, please consult with us at
Ask KH
and via Direct Message (DM) to Instagram @kontrakhukum.
