7 Crucial Rules to Name Your Company in Indonesia
Not used by another company or institution
Avoid using obscene words
Avoid using obscene words
Minimum 3 (three) words
Don’t use numbers or characters
Only Roman alphabets allowed
Recommended to avoid business classification in company name
Selecting a name for soon-to-be established PT or PMA can be burdensome,
Hence these 7 crucial rules will guide through the demanding process.
1. Not Used by another Company or institution
Don’t pick a similar name to below mentioned:
- A legally existing company
- Government institutions
- International Institutions
The system will verify the name to ensure that it's not currently used by another company or institution.
There are 2 (two) choices if system rejects the submitted name:
- Submit new name, but in this case, the same procedure will apply
- Concerned institution or company having similar name legally authorize for usage of the name
2. Avoid using obscene words
Obscene or vulgar words usage is strictly prohibited by the law as it may create conflict with the public order or morality.
3. Minimum 3 (three) words required
According to the provisions of article 5 of the Government Regulation Number 43 of 2011, compose minimum 3 (three) words in your company name.
It is mandatory to put the abbreviation “PT” preceding the name, but it will not be included as one of the three required words.
The system will reject company name application which composed less than 3 (three) words.
There is no specific rule that regulates the naming of the brand. So, it’s not mandatory to use the company name as the brand.
4. Don’t use numbers or characters
The Numbers and the characters usage are prohibited by the law.
It is not allowed to use any letter or number combinations that don’t form a coherent word.
5. Local Company must be named in Bahasa
Pursuant to Article 36 (3) Law No. 24 of 2009 concerning Languages, it is mandatory to use Bahasa Indonesia to name buildings, roads, apartments
or housing, office buildings, trade names, business entities, educational institutions, and organizations which are established or owned by Indonesian nationals or Indonesian legal entities.
Hence, local company (PT) which shares are fully owned by Indonesian nationals/legal entities, need to name the company in Bahasa Indonesia.
However, PMA which shares are fully owned by foreigners or jointly owned by foreigners and locals, can be named in English and/or any other languages aside from Bahasa.
6. Only Roman alphabets allowed
The usage of other alphabets besides Roman/Latin is prohibited pursuant to Regulation Number 40 of 2007 on Limited Liability Company.
It is not allowed to use any other kinds of letters like Greek or Cyrillic. The company name needs to be readable and understandable.
7. Recommended to Avoid business classification in the company name
Avoid the usage of words that show the business classification. At the same time, make sure that the name won’t give any wrong impression on the business conducted by the company.
Furthermore, using a name that refers to the industry of the company may limit future opportunities of changing the nature of the business or restrict the company to add other business classifications.