Most large companies in Indonesia are business entities in the form of a Limited Liability Company (PT). Then, if you pay attention, many companies have the appendage “Tbk” at the end of their name.
For example, PT Indofood Sukses Makmur Tbk, PT Astra International Tbk, PT Blue Bird Tbk, and many more. Well, that’s what we call a public company.
Then, what is a public company? How does it differ from a closed company? Let’s discuss further in the following article.
What is a Public Company?
Yes, Tbk is an acronym for “open”. So the term “PT Tbk” indicates that the company is a public company.
A public company is a public company or a company that conducts a public offering of shares, in accordance with the provisions of laws and regulations in the capital market sector (Law No. 6/2023).
In essence, a PT that uses Tbk behind its name is a public company. Therefore, anyone can buy shares of PT Tbk in the capital market.
Requirements to Become a Public Company
Law No. 8/1995 on Capital Markets also regulates public companies. Some of the basic requirements to become a public company include:
- Has at least two members of the board of directors
- At least 300 shareholders own the company’s shares
- The company deposits a minimum capital of Rp3 billion
What is the Difference between a Public Company and a Closed Company?
The main difference between listed and non-listed companies lies in the shareholding and capital requirements.
In general, the number of shareholders of a closed company corresponds to its founders. It can be just an individual (a closed PT is an individual PT) or two or even more shareholders.
In addition, shareholders in a closed company also depend on two classifications, namely:
1. Purely Closed
- Shareholders are absolutely limited and absolutely closed. So, it is limited to a certain circle of friends and certain family members only.
- Its shares are issued only in the name of certain individuals.
- In the company’s articles of association, the transfer of shares is expressly stipulated to be limited to among shareholders only.
2. Partially Closed, Partially Open
The Company divided all of its shares into two groups:
- A specific person or group may only own one specific group of shares. These types of shares are classified as ‘preferred shares’ and can be held by a limited number of individuals.
- In the other group of stocks, anyone can own shares openly.
Based on the provisions of Article 33 paragraph (1) of the PT Law, a closed company is required to deposit a capital amount that is not less than 25% of the authorized capital.
Advantages of Being a Public Company
Being a publicly listed company can bring many advantages when compared to a private company. What are they?
1. Obtaining New Funding Sources
By becoming a public company, the company can easily raise funds from investors who buy shares. The company can utilize these funds to expand its business.
2. Increase the Valuation of Company Assets
If the valuation of the company’s assets is large, the profitability and productivity of the company could potentially increase.
3. Avoiding Company Bankruptcy
A public company has a great opportunity to have a healthy capital structure. With large funds from shares, it can prevent the company from various financial threats such as bankruptcy and other unexpected conditions.
4. Easy to Spread Wings
This happens because the government provides benefits in the form of tax incentives to public companies based on PP No. 56/2015.
5. Easier to obtain liquidity
Liquidity is the company’s ability to fulfill its obligations as well as to show the financial condition or wealth of the company.
If the liquidity level is high, many parties such as creditors, financial institutions, raw material suppliers, and others will assess the company favorably and easily provide support.
KH Contact
Are you also interested in establishing a public company and opening up greater investment opportunities for your business?
Let’s entrust the process of establishing a public company to Kontrak Hukum. We are ready to help starting from the preparation of the establishment of a business entity, the process of licensing legal documents, to the legal consultation you need.
Just visit the page KH Services – PT Establishment. Jika masih memiliki pertanyaan, Sobat KH juga bisa konsul gratis di Ask KH or send a direct message (DM) to Instagram @kontrakhukum.
You can also join the KH Business Community as a place and access to various information, discussions, and legal assistance from professional experts and other business people. Just register via this page KH Business Community.
In addition, you can also increase your income to millions of rupiah by becoming part of the Contract Law Affiliate Program.
The registration method is also quite easy, just go straight to the following linkyes!
