Starting a Company in Indonesia: A Guide to Company Name

Your Guide to Company Name in Indonesia

  • InCorp Editorial Team
  • 10 February 2020
  • 4 minute reading time

It is for certain that you cannot run a business in Indonesia without a business name. It is the first step to starting a company in Indonesia, and finding the perfect name for your company can have a compelling effect for your business success.

The process of naming your business can be both complex and daunting at the time. It’s important to get this right because a wrong name can do more harm if the names fail to connect with your clients in a positive way.

Therefore, a powerful company name can be immensely advantageous for your brand image and marketing effort.

However, there are certain things you have to pay attention to when choosing a legal company name in Indonesia and registering it to the Indonesian Ministry of Law and Human Rights.

Here are helpful suggestions on how to create a winning company name that meets all the standards as required by Indonesia law.

Starting a Company in Indonesia: Company Name Rules

company name indonesia

Your Company Name must Have at Least Three Words

To come up with a name for your company and register it in Indonesia, as required by the law, you must first make sure that it comprises of at least three words. You can have a company name with more than three words.

First of all, you will have to send an application to the Legal Entity Information the system will tell you that if your company name has been registered by other entities.

For example, PT Horizon Consulting Services is considered a 3-word company name that meets the set requirements.

A company name does not have to be the same as a brand name. Even when you have a 3-word or more words company name, you can still register a brand name for your PT PMA. The brand name can be fewer than three words.

 

Your Company Name Should Begin with the word “PT”

In the example shown earlier, PT Horizon Consulting Services, PT is not counted as a word for your company name and must be included. PT stands for Perseroan Terbatas and it means Limited Liability Company in Indonesia.

 

You can Only Use Roman Alphabets

Only the Roman alphabets are permitted to be used in the names of PT PMA. Other alphabets such as Cyrillic and Greek, or Chinese characters are not allowed in your company name.

 

Name of Local Company has to be in the Indonesian Language

If your company is a local limited liability company or fully owned by Indonesian citizens, the company name has to be in Indonesian language.

 

Foreign Company Name can be in Foreign Languages

A foreign-owned company (PT PMA) can have its name in English or other foreign languages apart from Indonesia.

 

Profanity and Vulgarity Are Prohibited

Indonesia is still considered a conventional and religious country. Therefore, you should avoid using words that can be considered obscene, rude or tasteless when naming your company.

Company Registration in Indonesia with Cekindo

Cekindo is a licensed company registration provider in Indonesia, offering one-stop solution to assist our clients interested in starting a company in the country.

Not only do we help you choose the right entity and incorporate your business, but we also assist you with bank account opening, as well as providing useful consultations – so that you can start your business activities quickly and efficiently.

In addition to that, Cekindo is able to give on-going assistance for all your tax and accounting functions after you have set up a company in Indonesia. This is particularly vital for foreigners who are not familiar with Indonesian laws and legislation.

Contact Cekindo for an appointment now and our international team is ready to provide support as your business grows. Fill in the form below.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.

It should take between 30 to 45 days.

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.