Before submitting a PT establishment application to the Ministry of Law and Human Rights (Kemenkumham), the founders must first determine the name of the company.
The guidelines for choosing a PT name are detailed in Government Regulation No. 43/2011 on Procedures for Filing and Using Names (PP 43/2011).
This regulation aims to provide legal protection to name users who have made a good faith effort to use the name as the name of the PT officially in its deed of establishment.
Therefore, the name of a PT cannot be made carelessly and there are several things that must be considered, namely:
Using Bahasa Indonesia
This is emphasized in Article 11 of PP 43/2021 which says that companies whose shares are wholly owned by Indonesian citizens or Indonesian legal entities must use the company name in Indonesian.
Please note that the name of a PT must consist of at least 3 syllables.
The addition of the suffix “PT” before the company name does not count as the 3-word naming prerequisite.
This provision aims to make it easy to distinguish between companies with foreign capital and local companies.
Written with Latin Letters
Company naming must use the alphabet.
Although there is a PT that is engaged in halal tourism, the PT is prohibited from using Arabic letters because not everyone can read them.
Besides, going back to point 1, this is not allowed.
Cannot Use the Same Name as Other HEIs
The naming of a PT must not be the same or have similarities in essence with the name of another PT even though the fields of business and domicile of the two PTs are different.
What is meant by similarity in essence is similarity caused by the existence of prominent elements between the names of one PT and another so as to cause similarities in the way of writing or sound of speech.
For example, PT Bhayangkara with PT Bayangkara, PT Sampurna with PT Sampoerna, PT Jaya and Makmur with PT Djaja & Makmur.
Therefore, business actors must first check the name of the company they want to register to prevent similarities with other PTs.
Not Contrary to Public Order and/or Decency
The selection of the name of the PT must adjust to the prevailing culture and not cause hatred in the community.
Moreover, using a name that contains racial issues, the name will definitely be rejected by the Ministry of Law and Human Rights because it is prohibited under Article 16 Paragraph 1 of Law No. 40 of 2007 concerning Limited Liability Companies (UU PT).
Not the Same or Not Similar to the Name of a State, Government or International Organization
For business people who want to give their company names similar to state, government or international institutions, they must obtain permission from the relevant parties.
For example, PT Dewan Perwakilan Rakyat which requires permission from the House of Representatives itself.
Use of Numbers and Letters That Do Not Form Words is Prohibited
This provision is intended to make the company name easy to read by anyone.
The prohibition of using numbers or series of numbers is such as PT 3, PT 99, PT 007.
Meanwhile, the prohibition of using letters or series of letters that do not form a word is PT S, PT A, PT ABC.
Has No Meaning as a Company, Legal Entity, or Civil Partnership
The use of company names such as PT Firma, PT Yayasan, Ltd, Gmbh, SDN, Sdn, Bhd, PTE, Co. & Co., Inc., NV, or BV, Usaha Dagang (UD), Koperasi Usaha Dagang (KUD), Incorporated, Associate, Association, SA, SARL, AG, etc. is prohibited.
Don’t Just Use Purpose or Line of Business as the PT Name
For example, there is a company that will do business in the field of contracting and transportation, then the founders name the PT as “PT Pemborongan dan Pengangkutan”.
This name will be rejected by the Ministry of Law and Human Rights because it is too general and there is not only one PT engaged in this field.
Plus, the name will be hard to remember for many people because it is not distinctive.
In accordance with the Company’s Objectives and Fields
Related to this rule, the founders must give the name of the PT in accordance with the purpose and business activities, for example PT Pelayaran Andalan whose business activities must be in the shipping sector, PT Abdul Konstruksi whose business activities must be in the construction sector.
It will confuse many people if there is a PT Sejahtera Abadi Medika that should be engaged in the medical business, but it turns out to be in the automotive business.
May be Accompanied by Abbreviations
The proposed company name may be accompanied by an abbreviation of the first letter of the PT name or an acronym of the PT name.
For example, PT Kustodian Sentrral Efek Indonesia abbreviated as PT KSEI or PT Sahabat Finansial Sejahtera abbreviated as PT Safira.
This stage of determining the name of the PT is important to note because it is an initial requirement when applying for a PT establishment license as stated in Article 9 Paragraph 2 of the PT Law.
The name must be determined before determining the capital structure, shareholders, line of business, and others.
Usually, the name of a PT is the prayer and hope of its founders.
In fact, there is often a philosophical meaning behind the name.
By having a unique and classy PT name, the popularity of the products or services sold by the company will also be boosted.
Therefore, KH Friend must be careful in choosing the name of the PT because it will determine the image of the company.
Read also: Want to Change the Name of a PT?
KH Contact
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