What name will help your business comply and thrive in Indonesia?
You’ve got your business idea, funding, and plans all ready to go. But when naming your company, the process suddenly becomes more complicated than expected. The name you’ve chosen may be unavailable, or it might not meet Indonesia’s legal requirements for Limited Liability Companies (PT).
This step proves to be a surprising challenge for many entrepreneurs and foreign investors. Naming a company isn’t just a creative task—it’s a legal one, and getting it right is essential for long-term success. In Indonesia, company names for a PT must comply with strict regulations to ensure they are unique and meet legal standards.
Key Takeaways
- Legal Compliance is Crucial: Choosing a company name in Indonesia for a Limited Liability Company (PT) must follow specific rules, including using Latin script, a minimum of three words, and, for domestic companies, names in the Indonesian language or internationally recognized terms.
- Avoid Prohibited Elements: PT names must not contain offensive words, imply connections to state institutions, or use special symbols or characters that are not part of regular language.
- Name Availability: Ensuring your name is unique is essential. Checking the name against the Ministry of Law and Human Rights (AHU) database helps avoid duplication and legal disputes.
- Strategic Naming for Growth: Choose a name that reflects your business activities without being too specific, allowing room for future expansion and brand flexibility.
- International Considerations: If planning to expand internationally, select a name that works globally, avoiding any negative cultural or linguistic connotations abroad.
Why Choosing a Name Matters More Than You Think
Naming a PT in Indonesia requires careful consideration of legal requirements. The name must be written in Latin script, consist of at least three words, and—if it’s a domestic company—be in the Indonesian language or use internationally recognized terms.
Foreign investors forming a PMA (foreign-owned) company have more flexibility with language, allowing the use of foreign terms. Name rejection is common, particularly for failing to meet the three-word rule or because of duplication in the Ministry of Law’s database.
It’s also important to note that the name cannot contain symbols or characters that are not commonly used in everyday language. Additionally, names that resemble those of state institutions or government agencies are prohibited unless special approval is obtained.
What to Avoid When Naming Your PT
When choosing a PT name, it’s important to follow these legal restrictions to avoid rejection:
- No Offensive Content: The PT name must not contain words that are contrary to morality, religion, or public order.
- Avoid State or Government References: The name must not be identical or similar to the names of state institutions, government agencies, or international organizations unless authorized by the respective institution.
- Legal Entity Terms: The name must not imply the meaning of a corporation, legal entity, or civil partnership if the company does not hold that status.
- No Unusual Symbols or Characters: Avoid using symbols or punctuation marks that aren’t typically used in written language.
Following these guidelines not only ensures compliance but also helps create a name that stands out and is free of legal disputes.
How to Strategically Choose a Name for Success
A company name is more than just a legal requirement—it’s the foundation of your brand identity. A name that’s too specific might limit future growth, while one that’s too generic may not capture attention.
Permitindo’s company registration service assists entrepreneurs and foreign investors in navigating these rules. Our experts can help you select a name that complies with the law and supports your long-term business strategy, from checking availability to offering strategic advice.
Branding Considerations for International Growth
If your company plans to expand internationally, it’s crucial to choose a name that works globally. According to Deloitte, 64% of global consumers make purchasing decisions based on how well a brand aligns with their values(Deloitte United States). This highlights the need for a name that is not only legally compliant in Indonesia but also marketable in other countries.
Conclusion: Your Company Name is Your Identity—Choose It Wisely
Choosing a legally compliant and strategic company name in Indonesia is a key step in building a successful business. From checking availability to ensuring alignment with your business goals, Permitindo can guide you through the process. What name will help your business comply and thrive in the marketplace?
You can contact us directly via contact@permitindo.com or reach us via the form below for personalized assistance in registering your company and ensuring your name complies with Indonesian regulations.