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Jakarta, Ideatax -- Managing a business is a challenge that requires entrepreneurs to always pay attention to various aspects, including those related to law. One of the important moments in a business journey is when the owner or entrepreneur decides to stop operating their company. The process of closing a company should not be taken lightly, because it requires a strong understanding of the legal aspects that govern it.
This is due to the existence of regulations and provisions that must be complied with in the process of liquidating or closing a company in Indonesia. In this article, we will discuss in depth the legal aspects related to Indonesian company dissolution, so that you can better understand the official procedures that must be followed in ending your company in Indonesia.
Reasons for Company Dissolution
The dissolution of a company does not always occur due to business failure. There are various other factors that can influence it, such as:
- Poor management and insufficient resources.
- Economic conditions are unstable and do not produce profits.
- Revocation of business permits for companies with special permits.
- Legal decision at the GMS with ¾ of the shares agreeing to the dissolution.
- The period of establishment in the articles of association ends.
- Court decisions resulting from non-compliance with the law.
Legal Aspects of Indonesian Company Dissolution
In Indonesia, every process from the establishment to the dissolution of a company must follow established legal procedures. The dissolution of a company is regulated in the Limited Liability Company Law No. 40 of 2007 article 142 concerning business termination, liquidation and the end of a company's status as a legal entity.
As for the dissolution of Limited Liability Companies with Foreign Capital (PMA), it is regulated in BKPM Regulation number 3 of 2012, concerning procedures for controlling and implementing capital investment.
Company Liquidation Process in Indonesia
The process of dissolving a company must be carried out legally using a liquidation process, namely the stage where the company's assets and liabilities are settled by the liquidator. The stages are as follows:
1. Proposed Dissolution
The first stage in the process of dissolving a limited liability company is preparing a dissolution proposal. Usually, dissolution can be carried out if ¾ of the quorum in the agreement has been reached, unless otherwise stated in the deed of establishment.
2. Appointment of Liquidator
Furthermore, the General Meeting of Shareholders (GMS) will appoint a liquidator whose task is to record and announce the company's assets, make payments to creditors, and carry out other actions in resolving assets.
3. Liquidation Reporting
The final stage is reporting the approved liquidation and noting the end of the company's legal status and deleting the company name.
In the process, understanding and compliance with all legal aspects of Indonesian company dissolution is very necessary, including in terms of taxation. Handling taxation in the company closing process requires special skills and high precision.
For this reason, you can use Ideatax, a trusted, professional and experienced tax service provider. Our team will help you manage the tax aspects of your company dissolution in Indonesia well, so that you can end your business smoothly and in accordance with the law.
Visit the official Ideatax website at https://ideatax.id/id and contact us immediately for a free consultation!
