A PT is the equivalent of a limited liability company (LLC) and is the most common form of business entity in Indonesia. It offers limited liability protection to its shareholders and requires a minimum of two shareholders and one director. A PT can be either a local company (PT) or a foreign-owned company (PT PMA) depending on the ownership structure.

A Representative Office is a legal entity that allows foreign companies to have a presence in Indonesia without establishing a fully-fledged company. The primary purpose of an RO is to represent the interests of the parent company, conduct market research, promote products or services, and facilitate business activities on behalf of the parent company.

This is the simplest and most straightforward form of business entity. It is owned and operated by a single individual who has unlimited liability for the company’s debts and obligations. Sole proprietorships are typically suitable for small businesses and are not considered legal entities separate from their owners.