Legal entities for doing business
There are a number of legal forms of entities that can engage
in business in Indonesia:
• Sole Proprietor: proprietor has unlimited liability
• General Partnership (FA or “Firma”): partners have joint
and several unlimited liability
• Limited Partnership (CV): silent partners are liable to
the extent of their capital contribution, while managing
partners have unlimited liability
• State-Owned Corporation (BUMN): company owned by
the government and reliant upon the state to fund any
deficit
• Branch of a foreign corporation: foreign companies
cannot, in most cases, establish operations in Indonesia
through a locally-registered branch. “Branch” registration
is permitted in banking, oil & gas and certain types of
construction
• Limited Liability Companies (PT): shareholders have
limited liability.