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how to close a company in indonesia

Company Dissolution: How to Close a Company 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

How to Close a Company in Indonesia

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

Liquidation, in other words is 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 1 and 1.5 years to complete. According to Act Number 40 of 2007, to dissolve a company efficiently and seamlessly, the process is as follows:

No Legal Steps Duration (Working Days)
1 Article of dissolution issued by the notary (step 1) 5
2 Newspaper publicity (1st) 3
3 Approval from Ministry of Law and Human Rights 60
4 NIB and SIUP Revocation at OSS 30
5 Taxpayer Identification Number and Tax Certificate Registration (NPWP &SKT) Revocation 180
6 VAT Enterprise(s) (SPPKP) Revocation 180
7 Article of dissolution issued by the notary (step 2) 5
8 Newspaper publicity (2nd) 3
9 Approval from Ministry of Law and Human Rights 30
10 Newspaper publicity (3rd) 3
TOTAL PERIOD (Results may be varied): 1-1.5 years

[Infographic] How to close a company in Indonesia - Cekindo

How to Close a Company in Indonesia: Benefits of  Cekindo’s Company Dissolution Services

How to Close a Company in Indonesia - Liquidator Services iconLiquidator 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.

How to Close a Company in Indonesia - One-Stop Solution - iconOne-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.

How to Close a Company in Indonesia - Fast Process - iconFast Process

The duration of closing 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.

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