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Home Ownership Loan (KPR) is a financial solution for individuals who want to own a house without having to spend all the funds at once. Mortgages generally use personal assets as collateral, but is it possible to pledge company assets for a mortgage?
The answer is yes, mortgages secured by company assets are possible. However, there are several things to consider, such as the type of legal entity of the company and the applicable provisions.
Advantages and risks of pledging company assets for mortgages
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Having a legal entity in Indonesia is an important step for many individuals and companies. Using the name of a legal entity in applying for property financing credit provides various benefits, such as:
- Separateness of Wealth: A legal entity has wealth that is separate from the personal wealth of its owners. This means that the owners are not liable for the debts and obligations of the legal entity.
- Trust: Having a legal entity can increase trust from customers, business partners, and investors.
- Ease of Doing Business: A legal entity can make it easier to conduct business, such as opening bank accounts, applying for loans, and bidding for tenders.
Interested in setting up a legal company for your mortgage needs?
Legal Entities that Can Apply for a Mortgage in Indonesia
Not everyone can apply for a mortgage. There are a few legal entities that are eligible to get a mortgage in Indonesia, namely:
Perseroan Terbatas (PT)
PT is the most common form of legal entity in Indonesia with limited liability for shareholders. To apply for a mortgage by setting up a PT, the applicant must have:
- A valid company establishment deed.
- Taxpayer Identification Number (NPWP) of the company.
- Healthy company financial statements.
Penanaman Modal Asing (PMA)
PMA is a form of business entity for foreign investors with a minimum shareholding of 10%. Foreign Investment (PMA) can apply for a mortgage in Indonesia with some conditions. Here are some things that need to be considered:
Form of Business Entity:
- PMA must be a Limited Liability Company (PT) established in Indonesia.
- PT PMA must have a business licence from the Investment Coordinating Board (BKPM).
Mortgage requirements:
- Mortgage requirements for PMAs are generally the same as those for individuals, such as:
- Have a steady income
- Have a down payment
- Have a good credit history
It should be noted that not all banks in Indonesia offer mortgages for PMA. Some banks that offer mortgages for PMA include:
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- Bank BCA
- Bank Mandiri
- Bank CIMB Niaga
- Bank BNI
Limited liability partnership (CV)
A CV is a form of business entity with two types of allies: active allies who are fully liable and passive allies whose liability is limited to their paid-up capital. To apply for a mortgage, a CV must have:
- A valid company establishment deed.
- Have NPWP and SIUP.
- Have sufficient collateral to guarantee the mortgage
- Company NPWP.
- Healthy company financial statements.
Firma (FA)
As a non-statutory entity, a Firm is not eligible for a mortgage. However, if the Firm has individual partners with strong financial standing, such partners can act as shareholders and secure mortgages personally for business-related properties.
Terms of Pledging Company Assets for Mortgage
- The company's assets must have sufficient value to cover the value of the mortgage.
- The company's assets must be free of collateral or other mortgages.
- The company must have healthy financial statements.
- The company's Board of Directors must approve the pledge of the company's assets.
These are the things you must know when setting up a legal entity in Indonesia
Types of Legal Entities in Indonesia
There are several common types of legal entities in Indonesia, including:
- Perseroan Terbatas (PT): PT is the most common business entity in Indonesia. A PT is established by at least 2 people and has an authorised capital of at least IDR 25 million.
- PMA: Foreign Direct Investment is a company established with a share presentation from foreign investors.
- Partnership Company: Persekutuan is a business entity established by at least 2 people to run a joint business. Common types of partnership in Indonesia are Firma (Fa) and CV (Commanditaire Vennootschap).
- Representative Office: A type of business entity used only for market research activities (market research) and are not authorised to undertake profit-making activities.
Conditions for Establishing a Legal Entity
Each type of legal entity has different requirements and conditions to be established in Indonesia. Here are some examples:
PT
- Have at least 2 shareholders and 1 director.
- Make a Deed of Establishment of PT authorised by the Ministry of Law and Human Rights (Kemenkumham).
- Have a Taxpayer Identification Number (NPWP) and Trading Business Licence (SIUP).
PMA
- Have at least 1 foreign investor and 1 Indonesian director.
- Obtain a licence from the Investment Coordinating Board (BKPM).
- Have an authorised capital of at least IDR10 billion.
Before applying for a mortgage secured by company assets, it is important to consult with the bank and notary to ensure all requirements are met.
Applying for a mortgage secured by company assets can be a great solution for individuals who want to own a property with a high value. However, it is important to consider all the benefits and risks before making a decision.
Apply for Legal Entity Establishment for Property Financing Loans with Lets Move Group
The process of applying for a property finance loan can be complicated, especially if you are a first-time property buyer. One important step in this process is setting up a legal entity, such as a PT (Limited Liability Company) or CV (Commanditaire Vennootschap).
Lets Move Group is here to assist you in the process of establishing this legal entity. Our professional team will assist you:
- Understand the right type of legal entity for your needs.
- Prepare the necessary documents for the establishment of the legal entity.
- Manage the process of establishing a legal entity
With the help of Lets Move Group, you can ensure that the process of setting up a legal entity runs smoothly and efficiently. This will ease your property finance loan application process and increase your chances of getting approved.
Contact Lets Move Group now and get a free consultation on establishing a legal entity for property financing loans!
