As is known, the government through the Job Creation Law has made a new breakthrough where business actors can develop their business individually through a business entity called an Individual Limited Liability Company (PT).

This Individual PT is specifically for Micro and Small Enterprises (MSEs). Thus, they also have the opportunity to obtain the same legal certainty as business entities in general.

With the existence of work copyright, the types of companies are also divided into two, namely the capital partnership PT (ordinary PT) and Individual PT for MSEs (Individual PT).

So, what is the basic difference between an Individual PT and an ordinary PT?

Overview of an Ordinary PT

Article 1 of Law No. 40 Year 2007 (PT Law) defines a PT as a legal entity formed by agreement and capital alliance.

The characteristics of a PT which is a legal entity of capital alliance requires the establishment of a PT to be carried out by 2 or more people. Where later each of the founders of the PT must take part in the shares when the PT is established (Article 109 number 2 of the Job Creation Law which amends Article 7 of the Company Law).

Because of this, the establishment of an ordinary PT must be made based on an agreement. Where the agreement must be poured into an authentic deed before a notary using Indonesian language.

The establishment of a PT must also be made at a notary to then obtain authorisation from the Minister of Law and Human Rights (Menkumham), in order to have the status of a legal entity.

Overview of Individual PT.

Based on Article 1 of Government Regulation (PP) No 8 of 2021, an individual company or PT Perangan is a Limited Liability Company (PT) which is an individual legal entity that meets the criteria of Micro and Small Enterprises (MSEs).

Because it is an individual legal entity, there is only one shareholder who also acts as the board of directors. If there is more than one shareholder, it must change its status to a regular PT.

From this explanation, an individual PT can only be established if the business is included in the MSE criteria specified in Article 35 of Government Regulation No. 7 of 2021.

Individual PT is often considered more special than regular PT because it can be established without a notary deed. In addition, the establishment cost is also cheaper because it can be done by yourself without the help of a notary.

Source : kontrakhukum.com