As the enactment of Law (UU) No 11 of 2020 on Job Creation (Job Creation Law), now business actors can establish an individual PT (Limited Liability Company). Yes, this PT is established with individual status where the establishment can also be carried out by one person who acts as a shareholder and director. Of course this greatly supports the ease of business actors in building their business. However, it should be noted that the establishment of this individual PT can only be carried out by business actors who meet the criteria of MSEs (Micro and Small Enterprises), as regulated in Government Regulation (PP) No. 7 of 2021 concerning Ease, Protection and Empowerment of Cooperatives and MSMEs. Then, what business criteria are included in MSEs? Does your business fall into the category that can establish an Individual PT? If so, what is the procedure? Check out the full explanation in the following article!
Definition of Individual Company
Before understanding further about the requirements and procedures for establishing an individual PT, KH Friend needs to first know what the definition of an individual PT itself is. Yes, as already mentioned, an Individual PT is a PT established by one person, where the founder acts as a shareholder as well as the owner of the PT. Although established by one person, an Individual PT is also a legal entity just like a regular type of PT established by at least two people. The status of an individual PT as a legal entity is emphasized in Article 1 of Government Regulation No. 8 of 2021. 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.
Legal Basis of Individual PT
Provisions regarding individual PTs themselves have been contained in several regulations, among others:
- Law No. 11 of 2020 on Job Creation
- PP No. 8 of 2021 concerning the Company’s Authorized Capital and Registration of Establishment, Amendment, and Dissolution of Companies that meet the criteria for MSEs
- PP No. 7 of 2021 concerning Ease, Protection, and Empowerment of Cooperatives and MSMEs
- Permenkumham No. 21 of 2021 concerning Requirements and Procedures for Registration of Establishments, Changes, and Dissolution of PT Legal Entities
Essential Elements of an Individual Company
In accordance with the Job Creation Law, there are two important elements in the establishment of an Individual PT, namely the individual element and the MSE criteria.
Individual Elements
Individual means one person. This definition also only applies to Indonesian citizens (WNI) only. Foreigners may not establish an individual PT. The founder of an individual PT is only one person and there is a separation between personal wealth and the company. Individual PTs also have the characteristic that there is no minimum requirement for authorized capital, it is enough to fill in the statement of establishment. The establishment of an Individual PT does not require a notarial deed, only one founder has only one shareholder, and there is no need for commissioners.
Elements of MSEs
UMK means Micro and Small Enterprises. The criteria for micro businesses means that they have capital below Rp1 billion rupiah. While small business means having capital between Rp1 billion and Rp5 billion. Thus it can be explained that an Individual PT is a PT established by one person with a capital of under Rp5 billion.
Terms of Establishment of Individual Company
For KH friends who want to establish an Individual PT, it is mandatory to fulfill the requirements below:
- Established by one person as shareholder and owner
- Indonesian citizen at least 17 years old and legally capable
- Must meet minimum wage criteria
- Can only establish one individual PT in one year
After fulfilling the above requirements, then next KH Friend must prepare several documents for the establishment of an Individual PT, among others:
- ID card of the founder
- NPWP of the founder
- Address of individual PT (If the address is in Jakarta, it must meet the zoning requirements in accordance with DKI Jakarta Regional Regulation No. 1 of 2014 on Spatial Detail Plan and Zoning Regulations)
- The statement of establishment is in accordance with the format in the attachment to PP No. 8 of 2021, where the contents are as follows:
- Name and domicile;
- Period of establishment;
- Purpose and objectives and business activities;
- Total authorized capital, issued capital, and paid-up capital;
- Nominal value and number of shares;
- Individual PT Address; and
- Full name, place and date of birth, place of residence, NIK, and NPWP of the individual PT founder.
Individual Company Establishment Procedure
After fulfilling the required documents as described, you can establish an individual PT by carrying out the following procedures:
1. Determining the Name of an Individual Company
There are no specific rules regarding the selection of the name of an Individual PT, therefore it still uses the provisions for ordinary PT names in PP No 43 of 2011. The following are the provisions for the name of an individual PT:
- The name of the PT must use Indonesian and is not allowed to use foreign languages
- The name of the PT must not be the same as the name of another PT that is already registered
- Consists of at least three syllables
- Must not contain numbers
2. Determine the KBLI of the business
The next procedure is to determine the business activity code based on KBLI. KBLI or Indonesian Standard Field Classification is a classification code about the economic activities or business fields of companies in Indonesia.
Find out more details about KBLI businesses here.
3. Apply at the Ministry of Law and Human Rights
After that, register an individual company with the Ministry of Law and Human Rights to obtain legal entity status.
4. Applying for Individual PT NPWP
The next procedure is to apply for an Individual PT NPWP. For KH pals who don’t know how to take care of NPWP, you can read more here here.
5. Processing NIB and Business License for Individual PTs
In addition to NPWP, every business actor must also have an NIB. With the NIB, it makes it easier for KH Friend to get a license to run a business. After obtaining NIB, KH Friend can take care of an individual PT business license to run your business and to fulfill business legality.
Advantages of Establishing an Individual Company Compared to a Regular Company
Judging from its convenience, the establishment of an Individual PT has many advantages when compared to a regular PT, and provides many advantages such as:
- Have certainty of legal entity and officially registered with the Ministry of Law and Human Rights
- Formally separating personal and business wealth by having its own NPWP
- The establishment of an individual PT can also be done online and the process has also been integrated with the NPWP arrangement in the name of the individual PT, so it does not need to be done in front of a notary.
- The capital to establish a legal entity is free ranging from Rp0 to Rp5 billion.
- Can create a bank account in the name of PT so as to increase credibility and professionalism in its business transactions
- Can complete the legality required in applying for capital loans, both to banks and other investors
- Get priority access to government programs specifically for MSEs
- You may use your home address as a business location, as long as the location is in accordance with the Regional Spatial Detail Plan (RDTR).
That’s the explanation of things that KH Pals should know about individual PT, starting from the definition, legal basis, important elements, to the requirements and procedures for establishing it. How about KH Friend, of course now you have a better understanding and are ready to establish an individual PT, right?
KH Contact
Well, for KH Pals who want to establish a PT, you can immediately contact Kontrak Hukum. We can help you to establish an individual PT business entity easily and quickly, including the required legality documents such as Statement of Establishment, NPWP, NIB, and other licenses issued through OSS. All of our services are also done to a high standard in-house by authorized and experienced legal professionals. Not only that, you can also directly open a business account at BCA for your individual PT!
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Creating an individual PT at Kontrak Hukum is faster than making coffee because it only takes 5 minutes, your PT establishment is immediately processed and Friend KH is ready to make money with a new business entity, deh! So what are you waiting for? Let’s make your individual PT establishment business easier by visiting this page. For questions about other legal services, please contact us at the following link Ask KH or via social media Instagram @kontrakhukum.
