Are you facing challenges in running your business in Indonesia? When profits dwindle and problems persist, it might be time to consider dissolving your company. In this article, we'll explore the process of company dissolution in Indonesia, including legal requirements and timelines.

Understanding Company Dissolution

Company dissolution, also known as liquidation, involves closing a limited liability company by removing its name from official registers. This can be a strategic move to restructure your business when it's no longer profitable or faces insurmountable challenges.

Reasons for Dissolution

According to Indonesian law (UU PT – Perseroan Terbatas) No. 40 of 2007, several reasons can lead to company dissolution:

- Decision of the General Meeting of Shareholders (GMS)

- Expiration of establishment period

- Revocation of business licenses

- Court decisions due to legal non-compliance or bankruptcy

Liquidation Process

The liquidation process, as per Indonesian law, involves several key steps:

1. Announcement of dissolution in newspapers and official gazettes.

2. Registration of dissolution with the Ministry of Law and Human Rights.

3. Assessment and registration of company assets and settlement obligations.

4. Reporting liquidation results for approval.

5. Finalizing liquidation and notifying authorities.

Timeline for Dissolution

Here's an estimated timeline for the dissolution process:

1. Drafting Circular Decision: 5 working days

2. Newspaper Announcement: 3 working days

3. Deed of Dissolution: 30 working days

4. Approval from MOLHR: 30 working days

5. Newspaper Announcement on Equity Separation: 3 working days

6. Circular Decision on Liquidation Results: 7 working days

7. Deed of Liquidation: 30 working days

8. Approval from MOLHR: 30 working days

9. Newspaper Announcement on Liquidation Completion: 60 working days

Liquidation Service

Indoservice offers professional liquidation services to assist companies in the dissolution process. Their services include:

- Announcement and Notification

- Wealth Listing and Sharing

- Creditor Objection Handling

- Liquidator Accountability

- Result Announcement

Conclusion

While establishing a company is relatively straightforward, dissolving one involves navigating legal complexities. By following the regulated dissolution process, you can ensure a smooth transition for your business in Indonesia.

For expert assistance in company dissolution, consider partnering with Indoservice to streamline the process and comply with legal requirements effectively.