Individual Limited Liability Company
In accordance with Article 153A Paragraph (1) of Law No.11 of 2020 on Job Creation ("CiptaKer Law"): "A company that fulfils the criteria of micro and small enterprises may be established by 1 (one) person"
Now an Individual Limited Liability Company ("Individual PT") can be established by 1 (one) person as a shareholder as well as a director who fulfils the provisions of micro, small and medium enterprises ("MSMEs").
Individual PT is one type of Limited Liability Company ("PT") that can be used as a bridge for business activities and provides convenience for the MSME sector in building a business. In establishing an Individual PT, the following points must be considered:
Criteria - Criteria for Establishing an Individual PT
As stipulated in Government Regulation No. 8 of 2021 concerning the Company's Authorized Capital as well as Registration of Establishment, Amendment, and Dissolution of Companies that Meet the Criteria for Micro and Small Enterprises ("PP No. 8/2021"), the criteria for establishing an Individual PT are as follows:
Micro Business Criteria
This criterion is determined based on business capital or annual sales. If it has a maximum business capital of 1 Billion, excluding land and building of the place of business, it has annual sales of more than 2 Billion.
Small Business Criteria
This criterion is determined based on business capital ownership. If it has a business capital of more than 1 Billion to a maximum of 5 Billion, excluding land and buildings of the place of business or has annual sales of more than 2 Billion to a maximum of 15 Billion.
Establishment of Individual PT
Regarding the establishment of an Individual Company, it is explained in Article 6 and Article 7 of Government Regulation No.8/2021, which in this article is summarized as follows:
The establishment of an Individual PT has procedures that include:
- A PT establishment can only be established by 1 person, including shareholders and directors (no commissioners).
- Has micro and small business activities.
- The founder makes a statement of establishment.
- Electronic registration of Individual PT through the Minister of Law and Human Rights.
- Administering the NPWP of the Individual PT.
- Arrange for the NIB and business licence of the Individual PT.
Although the founder is only established by 1 person and includes in the legal entity procedure, it should be underlined that the Individual PT status remains under the auspices of a legal entity, just like the PT that we previously knew with a minimum of 2 founders and shareholders.
Requirements for Establishing an Individual Company
- A limited liability company is called a persero which is a legal entity established in accordance with the criteria of micro and small businesses.
- Make a statement of establishment in accordance with the format in the attachment to PP No.8 of 2021 regarding MSE capital.
- An individual company can only be established by 1 person.
- Individual companies must have authorised capital and paid-up capital. The provision of paid-up capital is a minimum of 25% of the authorised capital as evidenced by valid proof of deposit.
- Individual companies may only be established by Indonesian citizens by completing a statement of establishment in Bahasa Indonesia.
- The Indonesian citizen as referred to must be at least 17 years old and legally capable.
The requirements in registering the establishment of an Individual Company are as follows:
- ID card of the Founder
- NPWP of the Founder
- Address of the Individual Company
- Fill in the statement letter of establishment of an individual company
How to Establish an Individual Company
The registration of an Individual Company is made by filling in the registration statement which must be filled in and signed by the founder of the Individual Company.
After the declaration of establishment is registered electronically, the Individual PT is already a legal entity and will get a certificate of registration electronically. An Individual PT does not need to be published in the Supplement to the State Gazette.
However, the government limits the establishment of this Individual PT, that one identity is only allowed to establish one Individual PT in one year. This is done so that business actors can be more serious and focused in developing their business, and also this is a form of monitoring from the government.
For a complete guide, please refer to the web page below:
https://panduan.ahu.go.id/doku.php?id=panduan_pendirian_ptp
Financial Statement of Individual Company
Based on Article 10 Paragraph of PP No.8/2021 Individual PTs are required to prepare financial reports and the financial reports are reported to the Minister of Law and Human Rights by filling in the format for submitting financial reports electronically no later than 6 (six) months after the end of the current accounting period. With the following format:
- statement of financial position;
- income statement; and
- notes on the current year's financial statements
Then the sanctions related to the financial statements of individual companies are contained in Article 12 Paragraph (1) of PP No.8/2021 which explains as follows:
Individual companies that do not submit financial reports as referred to in Article
10 shall be subject to administrative sanctions in the form of:
a. written warning;
b. termination of access rights to services; or
c. revocation of legal entity status.
For more details, please refer to the Appendix to PP No.8/2021 which is on the page below:
- Written by Rizky Prakoso -
