How to choose a PT PMA name in Indonesia

Below are the list of requirements for creating a new PMA Company as regulated under Article 5 of Government Regulation number 43 of 2011 regarding the Filing Procedures and Use of a Limited Liability Company Name that the proposed company name must meet the following requirements in order to be accepted by the Minister:

1. PT PMA name has to include at least 3 words

One of the first requirements that foreign companies need to follow is to use at least three words in their name.

Let’s say that you are planning to name your company in Indonesia PT Bali Villa.    This would not be accepted and you would have to add at least one more word to the name. For example, PT Bali Villa Investments could already be an acceptable name.

PT is an acronym for Perseroan Terbatas, a term that represents a limited liability company in Indonesia. Also known as a foreign investment limited liability company, a Perseroan Terbatas (PT) is a business entity that allows foreign investors to conduct commercial activities in Indonesia. The PT is a legal entity that acts per commercial Indonesian law.

2. Company name in Indonesia cannot be misleading

Be sure to not convey any wrong ideas or impressions. Especially what comes to using your future business activities as part of the name.

For instance, if you want to register your company with the business classification of tourism, you cannot use the word “trading” in the name of your company.

Furthermore, referring to the industry of your company can limit your future opportunities. Even if it is in accordance with your current business activities, having a word that directly states a business classification included in your PT PMA name restricts you from adding other business classifications in the future.

3.  Name cannot be similar to an existing company or government institution

When you pick a name for you foreign company in Indonesia, make sure that it isn’t analogous to names of:

  • existing companies
  • international organizations
  • government institutions

In any other case, avoid using names that are similar to or even sound similar to other companies’ or institutions’ names.

4. Don’t use vulgar or obscene words

Indonesia is one of the most religious countries in the world. Avoid using ambiguous words in your PT PMA name that might be considered offensive, indecent, or profane here.  Indonesia has a diverse culture and there are plenty of customs to follow.

5. Use Roman alphabet only

There are entrepreneurs want to use Greek, Cyrillic or some other alphabet in their corporate name. Indonesia, however, does not allow to write corporate names using any other alphabet than Roman. PT PMA names have to be clear and understandable to all.

6. Don’t use series of words and numbers

Another restriction when choosing a corporate name in Indonesia is that you are not allowed to use any letter or number combinations that do not form a word.

7. Company Meaning Prohibited Words

It does not have a meaning as company, legal entity, or civil partnership for example the names cannot be the following:

  1. Company
  2. Co
  3. Corporation
  4. Limited
  5. Lte
  6. Ltd
  7. Sdn
  8. Gmbh
  9. NV
  10. BV

8. Word Length

Each word MUST be at least THREE letters long.