While Indonesia offers a favourable business environment and numerous opportunities for growth, there may come a time when you need to close your company due to unforeseen circumstances or strategic decisions. This process, known as company dissolution, is a legal procedure that requires adherence to specific regulations to ensure the smooth and compliant closure of your business operations in Indonesia.
Our legal team specialises in guiding businesses through complex processes like company dissolution, ensuring full compliance and a smooth transition.
Company dissolution is the formal process of legally terminating a company’s existence. This results in the cessation of all business activities and the removal of its legal status. Although financial insolvency—where a company can no longer meet its debt obligations—is a common cause for dissolution, several other factors can lead to this decision:
If you’re considering any of these options, our expert consultants can help you evaluate the best course of action and manage the dissolution process from start to finish.
Dissolving a company in Indonesia is a serious legal matter that involves meticulous preparation and compliance with regulatory requirements. Gathering the necessary documents is vital to avoid delays and ensure a smooth process. The essential documents required for dissolving a limited liability company (PT) include:
The dissolution process, known as liquidation, involves settling all financial obligations and distributing any remaining assets. Both active and inactive companies must undergo this process.
A legal consultant, lawyer, or the company’s Board of Directors can act as the liquidator, responsible for making public announcements about the dissolution. In order to achieve legal recognition, the announcements must be published in national newspapers.
The entire dissolution process typically takes between 12 to 18 months, depending on the specific circumstances of the company. An outline of the key steps involved, as per Indonesia’s Law No. 40/2007 on Limited Liability Companies:
The timeline may vary depending on the complexities of your business, but this provides a general guideline. To ensure your company’s dissolution proceeds without unnecessary delays, we offer expert project management and legal consultancy throughout each phase of the process.
Closing a business in a foreign country can be overwhelming, particularly with Indonesia’s evolving legal landscape. At SAS, we understand the challenges that come with dissolving a company. Our experienced team can guide you through the entire process, ensuring compliance with all legal requirements. Contact us today to explore how we can assist you in navigating your exit strategy with ease.
This article provides general information and is not intended as legal advice. The company dissolution process can be complex, and specific legal requirements may vary. We strongly recommend consulting with one of our qualified legal professionals to ensure full compliance and to address any unique circumstances related to your business.
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