How to Legally Choose a Company Name

How to Legally Choose a Company Name in Indonesia

It may not be a priority, but naming your company is a crucial aspect that every business owner should take time when conceptualizing. When you choose a company name, you assess how your organization is perceived. You also consider which branding strategies work and other long-term decisions.

New organizations admit to putting resources, time, and even legal considerations when naming their business. After all, without a compelling name, how do you expect your business to stand out among other companies in the industry?

In this regard, we’re going to discuss what goes into the name of a duly-registered company from the legal perspective.

 

Choosing a Legal Company Name: Major Considerations

Coming up with a unique and eye-catching company name maybe a piece of cake for an organization’s creative department. But the question lies: Is it acceptable under lawful regulations? Here are naming requirements you need to comply.

Register a Name With at Least Three Words

Any foreign company that wishes to operate in Indonesia must go through the process of name application via the Directorate General of General Legal Administration.

Once you’ve sent your application, the Legal Entity Information System will have to verify for similar names. If your proposed organization name is approved, you have 60 days to execute the Deed of Establishment before you lose the right to use it.

Although there is no official statement that requires businesses to have names fewer than two words, companies who presented names with only two words had their applications rejected.

Companies Need an Additional “PT” Before Their Duly Registered Name

PT is the abbreviation of Perseroan Terbatas and having PT before your conceptualized names mean “limited liability.” Once your suggested name is approved, every legal document about your organization will have the “PT” before the official name.
Keep in mind that the “PT” doesn’t add the count to the three-word requirement for having your corporate name approved. If you plan to have “XYZ Legal and Accounting Firm” as your business name, it will officially be recognized as “PT XYZ Legal and Accounting Firm.”

Local Businesses Must be Named in the Indonesian Language

In compliance with Article 36 (3) Law no. 24 of 2009, it is mandatory for organizations, roads, offices, bridges, institutions, and trade names to use Bahasa Indonesia. Such a rule strongly applies to organizations or businesses owned by Indonesian legal entities or Indonesian nationals.

The use of Bahasa Indonesia for naming organizations also apply to foreign companies whose shares are fully-owned by Indonesian legal entities or nationals.

PT-PMA can be Named in English

If you are a foreign company that is partially-owned by foreigners or even Indonesian entities/nationals, you can still name your company in English. Furthermore, a PT-PMA can also be in other languages.

 

Other Naming Considerations

Aside from the key factors above, there are several reminders you need to follow.

1. Company names in Indonesia must be written using the Latin or Roman alphabet.
2. Foul words or languages are prohibited.
3. Company names must not be similar to those of government agencies or existing organizations.
4. Names must be relevant to the services, products, or industry it involves or partakes. It is recommended that you choose a company name directly relating to your services.

Although it may feel easy to choose a company name, considering the legal factors may narrow down your choices. 3E Accounting is an organization committed to providing entrepreneurs with practical aid when establishing a business in Indonesia. If you need to select Indonesia company name, 3E Accounting can help you establish your business faster and in compliance with legal regulations.Contact 3E Accounting now to have a conceptualized legal company name with ease and convenience.