Definition of Limited Liability Company or PT

Definition of Limited Liability Company or PT

Definition of limited liability company or PT. Limited Liability Company or PT is a form of company incorporated in Indonesia. What exactly does PT mean and what are some examples of limited liability companies in Indonesia?

In this article we are going to discuss various things related to limited liability companies including: definition of limited liability company or PT, PT characteristics

Read the article until the end so that you better understand what is meant by a PT or limited liability company.

Definition of Limited Liability Company or PT in General

Definition of Limited Liability Company or PT

In general, the definition of PT is a legal form where capital is made up of shares, with each owner owning as many shares as he owns.

The shares that become the capital of the incorporation of a limited liability company can be traded so that a change of ownership can be accomplished without dissolving the company.

Another opinion is that the definition of PT or Limited Liability Company is a business entity that runs a corporation (stocks) with the ability to regulate shares, where the owners of the capital bear responsibility according to the size of their shares.

Generally, a limited liability company is formed by at least two or more people by a notarial contract and a deed is drawn up.

In addition, the deed must be approved by the Department of Law and Human Rights for the company to officially become a Limited Liability Company (PT).

Characteristics of the Limited Liability Company

The characteristics of a business unit can be used to analyze whether the business unit is a limited liability company or not. Referring to the definition of CV above, the following characteristics of PT in general are:

  • The establishment of PT is aimed at profit (profit-oriented).
  • The limited liability company has an economic function and a commercial function.
  • The capital of the limited liability company consists of stocks and bonds.
  • Limited liability companies do not receive any facilities from the state.
  • The highest authority in a limited liability company is determined by the general meeting of shareholders (GMS).
  • The shareholders are liable for the company with their paid-in capital.
  • The profits generated by the shareholders are obtained in the form of dividends (profit sharing).

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