It is no secret that Indonesia is one of the most favourite investment destinations for foreigners due to its rapidly growing economy. Sometimes, however, it is very unfortunate that some investors are unable to gain profits from the market and they are forced to encounter company liquidation in Indonesia.
Liquidating a company is not equal to failing a business. Most of the time, company liquidation is due to several reasons such as the following:
- The incorporation term has expired
- The business license such as PT PMA business license or other specific licenses, has been repelled
- The company’s operation has not been active for three years
- The business is not in compliance with Indonesia Law
- The company is bankrupt and it is unable to pay the bankruptcy with its assets
If your company is facing liquidation, it is very likely that you will wonder how to do it and what exactly would happen during the process. Read on to find out in this article.
What is Company Liquidation
Company liquidation is a process a business initiates to end its operations and sell the remaining assets to settle the debt. When a company is liquidated, it is certain that the business will not continue to operate in the future. For PT PMA, the liquidation must be in accordance with Indonesian Company Act and BKPM regulation.
Company Liquidation Process in Indonesia
A liquidator can be the Board of Directors (BoD) or a legal consultant. In common cases, a liquidator during the dissolution process is appointed by a legal consultant or lawyer. Cekindo can act as the liquidator as well as the legal consultant for your company.
The liquidation process can be broken into several steps, according to Act Number 40 of 2007:
- The notary will issue an article of dissolution – step 1 (5 business days)
- There should be an announcement of the company liquidation in the State Gazette and newspaper (3 business days)
- The Ministry of Law and Human Rights will approve the dissolution (60 business days)
- Revoke business identification number (NIB) and business license (SIUP) at the OSS (30 business days)
- Revoke taxpayer identification number (NPWP) and tax certificate registration (SKT) (180 business days)
- Revoke VAT enterprise(s) (SPPKP) (180 business days)
- The notary will issue an article of dissolution – step 1 (5 business days)
- There should be a second announcement in the State Gazette and newspaper (3 business days)
- The Ministry of Law and Human Rights will approve the dissolution (30 business days)
- There should be a third announcement in the State Gazette and newspaper (3 business days)
It is the liquidator’s responsibility to make an announcement in the newspaper and State Gazette. If the liquidator does not do so, the liquidation will not be effective.
The announcement of the liquidation made by the liquidator in the State Gazette and newspaper is required to consist of the below details:
- The company’s liquidation and its legal basis
- Liquidator’s name and address
- Claim submission procedure
- Deadline of claim submission
Liquidation Services from Cekindo
There are times when company liquidation is necessary and it can be a stressful and difficult time for business owners.
Cekindo can serve as your liquidator and legal consultant during the company liquidation process which can be lengthy and complicated in Indonesia. Our number one objective is to give you the necessary resources, tools, and support, so that you can complete the liquidation process as smoothly as possible.
Cekindo’s team of experts goes the extra mile by offering you the most professional assistance and our impeccable reputation in Indonesia speaks for itself.
For a free and confidential consultation, please get in touch with us now by filling in the form below.
