+62877-1449-8500Dissolution of the Company in Indonesia – The main purpose of establishing a company and opening up business opportunities is to make a profit. But running a business often doesn’t go well, many problems arise in running a business. When a company continues to lose money, shareholders can think of two options: improve and restructure management, or dissolve the company.
Dissolution of the company is the right choice to restructure your business, if your business is no longer profitable and there are many problems.
Below are the things you need to know if the company is going to be dissolved under Indonesian law.
What is Meant by Company Dissolution?
The dissolution of a company, which is also known as dissolution, is a method of closing a limited liability company by removing its name from the official register registered with an agency/institution related to the company.
The Reasons for the Company to be Dissolved
Legally based on Law (UU PT – Perseroan Terbatas) No. 40 of 2007, there are several reasons that can cause the dissolution of the company, including:
- Decision of the General Meeting of Shareholders (GMS) that is valid based on deliberation to reach a consensus with at least three quarters of the shares with voting rights supporting the dissolution;
- The expiration of the period of establishment as stated in the articles of association;
- Revocation of business licenses, especially for companies with certain licenses;
- Based on a court decision, due to non-compliance with the law, including legal defects in the deed of establishment and operation of the company which has been inactive for three years;
- Based on a court decision regarding the bankruptcy of the company, if the remaining assets of the bankrupt company are not sufficient to pay the bankruptcy costs;
- When the Company’s Business License (PT PMA) is revoked, the company has been liquidated.
Liquidation Stage
Based on Law (UU PT – Perseroan Terbatas) No. 40 of 2007, the following are the steps of the liquidation process:
- Announcement of dissolution by the liquidator in newspapers and the State Gazette of the Republic of Indonesia. This announcement contains information regarding the dissolution of the limited liability company and the basic law, the name and address of the liquidator, the procedure for filing invoices and the period for submitting collections.
- Register the proposed dissolution with the Ministry of Law and Human Rights, within 30 days after the dissolution is effectively carried out.
- Liquidator registers company assets and settlement obligations to creditors. In the event that the liquidator does not perform its obligations, this petition is open to interested parties
- Report the final results of the liquidation to the GMS or court for approval.
- Report on the liquidation of ratification to the Ministry of Law and Human Rights and announce it in the newspaper within 30 days from the date of ratification.
- The Ministry of Law and Human Rights records the expiration of the company’s legal status and deletes the company’s name.
The Time Limit Required in the Process of Dissolving the Company
Here we provide a timeline table of the processes needed to complete the entire process of dissolving the company.
No. | Legal Steps | Timeline/Estimation |
---|---|---|
1 | Drafting Circular Decision on Company Dissolution | 5 working days |
2 | Drafting Newspaper Announcement on Intention of Company Dissolution | 3 working days |
3 | Deed of Company Dissolution | 30 working days |
4 | MOLHR Approval on Deed of Company Dissolution | 30 working days |
5 | Drafting Newspaper Announcement on Equity Separation | 3 working days |
6 | Drafting Circular Decision on Liquidation Results | 7 working days |
7 | Deed of Company Liquidation | 30 working days |
8 | MOLHR Approval on Deed of Company Liquidation | 30 working days |
9 | Drafting Newspaper Announcement on Completion of Liquidation | 60 working days |
10 | Tax Card Cancellation | Subject to Tax Office |
11 | Revoke License | Subject to BKPM |
12 | Closing Bank Account | Subject to Bank |
Liquidation Service
Indoservice can act as a liquidator to assist the liquidation process of companies wishing to dissolve in Indonesia.
The process and duties of Indoservice liquidators are as follows:
- Announcement and Notification of Company’s Dissolution Stag
- The Stage of Listing and Sharing of Wealth
- Creditor Objection Submission Stage
- Liquidator Accountability Stage
- Stage of Announcement of Liquidation Results
Conclusion
Establishing a company is easy! But not to dissolve the company. Because there are certain steps that must be met in the dissolution process that have been regulated by law that every company owner must follow in the dissolution process.
Confused regarding the company’s dissolution and don’t have time to take care of it? Or have other questions regarding the dissolution & its costs?
You can contact us Indoservice regarding the dissolution of the company in Indonesia.
Indoservice, a secretarial and corporate licensing legal consulting company that can assist you in the process of dissolving a company in Indonesia, revocation of permits related to dissolution and appointment of liquidation. Trusted and experienced in Indonesia, committed to providing the best and fast service to meet your needs.
Contact us now!!! for special offers at +62877-1449-8500 or admin@indoservice.co.id.
Hi, I was looking for dissolution solutions when I came across your website. May I know the rough costs for dissolving a small local PT with Indoservice, and if Indoservice assists with the whole process?
Hi Ee Fong. Our team will email you as soon as possible. Please wait ya.
I established a PT PMA a year ago. Nothing has taken place. No investment! No purchases! No staff! No activities what so ever!
Should I Dissolution/dissolve it or just make it nonfunctional please?
Hallo Sameer. If there is no business activity, close the company by dissolution. We can help with the dissolution of the company. Please contact us via phone/whatsapp +6287714498500 or email admin@indoservice.co.id
Thanks so much for the blog article. Thanks Again. Really Great.