Company Dissolution in Indonesia

Company dissolution in Indonesia is one of the most cumbersome legal processes.

Reasons for Company Dissolution in Indonesia

Running a business in Indonesia is never easy, and entrepreneurs face many challenges. Unfortunately, even the process of dissolving a company in Indonesia is not hassle-free neither for local (PT) nor for limited liability companies (PT PMA).

There are plenty of reasons for a company to wind up or dissolve. The most common ones include the following:

An expired incorporation term
An expired business license (it can be a PT PMA business license or other operational licenses). Some cases may involve a license being revoked
A company has been dormant or has not been actively operating for the last three years
A company or a business is not in compliance with Indonesia Law
A company is bankrupt and unable to pay the bankruptcy with its assets

Company Dissolution Process in Indonesia

To be able to dissolve a company in Indonesia, a business is obliged to go through a liquidation process.

Liquidation, in other words clearing and settling the assets and liabilities of a company, is the only way how both active and inactive businesses in Indonesia can come to the end of their legal existence.

Who can be a liquidator? A legal consultant, a lawyer or the Board of Directors (BoD) can be a legal liquidator during the process of winding up a company.

The appointed liquidator is responsible for making an announcement about the dissolution in the State Gazette and newspaper. Failure to do so will result in an ineffective liquidation.

In general, the company dissolution process will take between 6 months and 1 year to complete. According to Act Number 40 of 2007, to dissolve a company efficiently and seamlessly, the process is as follows:

The liquidator should make an announcement about the company liquidation in the State Gazette and newspaper.
Within 30 days following the company liquidation, the liquidator must register the proposed liquidation with the Indonesian Ministry of Law and Human Rights.
After that, the liquidator will proceed to register the company’s obligations of settlement and assets to creditors.
The General Meeting of Shareholders (GMS) or court will be informed about the final result of the liquidation, so that they can approve it.
The approved liquidation is required to be be reported to the Indonesian Ministry of Law and Human Rights. Following this, an announcement will be made in the newspaper within 30 days.
The Indonesian Ministry of Law and Human Rights will go on to terminate the company’s legal state, record the expiry of its legal status, and make an announcement in the State Gazette.

Benefits of Closing a Company with Cekindo

Liquidator Services

An accountable liquidator accepted by the General Meeting of Shareholder (GMS) or District Court must take part in the whole procedure. Cekindo can act as a liquidator in Indonesia and provide complete assistance in conducting all the steps of the liquidation process.

One-Stop Solution

Our portfolio is not limited to liquidator services only. As a leading one-stop consultancy provider in Indonesia, we will take care of the whole process of termination of your company’s legal status in Indonesia.

Fast Process

The duration of terminating a company in Indonesia depends on many external conditions. However, with Cekindo, you can be sure that no major delays will occur. Thanks to our long existence on the Indonesian market as well as a vast network of contacts, we guarantee the fastest process of dissolving a company.

Contact Our Consultants

Fill in the form below and get the updated information on company dissolution in Indonesia.
Our legal team will quickly answer your questions. Visit our Indonesia offices in Jakarta, Semarang, or Bali.

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Selected testimonials

Prior to choosing Cekindo as our business partner in Indonesia, we interviewed and compared several companies. Finally, we chose to cooperate with Cekindo because of its professionalism and quality. Cekindo has assisted us in many ways, from company certification application to KITAS application and financial statement compliance to the fulfillment of other tax obligations in Indonesia. We appreciate the team’s fast response and professionalism in preparing the financial statements, among others.

Doris Chen
PT. Asia Victory and PT. Bigger One
When I joined Toaster, it was already working with Cekindo. But it’s quick to see why Toaster chose Cekindo. Cekindo has been very helpful throughout. Toaster Headquarters is based in London. Indonesian tax laws are not our specialty. Cekindo’s team has helped us to understand Indonesian tax. They are very knowledgeable and dependable, and therefore a huge asset to our company.

Tsui-Sie Wong
Toaster
As a new business in Indonesia, we started consulting with multiple law firms but quickly narrowed down to only Cekindo. Cekindo was recommended as one of the top firms by multiple sources in the business community. The staff at Cekindo was very responsive to our needs as a new business. The team provided consultancy and assisted our startup firm with initial business setup, licenses and permits, HR/recruitment and market research. One year since our establishment, we still consider Cekindo as our partner.

PT Ohmnia Tenaga Surya
When we intended to enter the Indonesian market back in 2013/14, Cekindo helped us to understand the possibilites and options for business presence in Indonesia through legal advice & also advisory on how to arrange for ownership. Furthermore, Cekindo also provides us with a range of fully professional and reliable accounting & tax services for our representative office in Indonesia. In the world of digital & virtual economy like today, it is an essential prerequisite to have the most reliable business partner like Cekindo.

Jan Pilař
Hydropol
A huge gratitude to Cekindo, particularly its visa team, for handling our visa cases. During our visa applications, Cekindo was extremely helpful not only in facilitating all of our visa requirements but also in clarifying our queries/doubts. I would like to take this opportunity to acknowledge and appreciate the good work of Cekindo’s visa team.

Sagar Datar
Bristlecone
When I was looking for a reliable partner who could help with company registration, payroll, taxes and working permit in Indonesia, Cekindo’s domain knowledge and clear communication astonished. Firstly, we decided to pursue cooperation with Cekindo in terms of company registration, but they also assisted me in obtaining the necessary working permits and visas (KITAS), and we use their payroll and tax reporting services until now.

Matthias Coessens
Product Director at Empyrean Solutions Apac
Cekindo handled business visa for our new colleague promptly and made the start of our company in Vietnam easier and faster. I particularly enjoyed communication with the consultant, who advised the best solution for us and was all the time available to answer any questions. She made sure that all the documents were collected and prepared on time and we got great support during the whole process. Thank you Cekindo and I hope to cooperate again in the near future!

Ivana Bartonkova
Marketing and HR director of Port Cities Vietnam

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Company Dissolution in Indonesia

Reasons for Company Dissolution in Indonesia

Company Dissolution Process in Indonesia

Benefits of Closing a Company with Cekindo

Contact Our Consultants

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