Company Act in Indonesia
The main law governing the company registration procedure is the Indonesian Company Law, also known as Law No.40 of 2007 on Limited Liability Companies. This is the first modern Company Act Indonesia has.
Our company formation consultants in Indonesia can explain the requirements for opening a company under the Company Law.
What does the Indonesian Company Act provide for?
Even if its name refers mainly to limited liability companies, the Company Law of Indonesia also provides for other types of companies, such as the public and open ones. The Company Act covers the following aspects related to setting up a company in Indonesia:
- the company must have shareholders who will deposit a share capital which will allow them to conduct a commercial activity;
- the company must have a board of directors, a board of commissioners and a general meeting of the shareholders;
- the preparation and amendments brought to the company’s statutory documents;
- a company must commit to take part in the development of a sustainable economy.
An Indonesian company must also have an objective. Our company registration advisors in Indonesia can offer more information on the provisions of the Company Act.
Other provisions of the Company Law in Indonesia
The Indonesia Company Law totals 24 chapters which provide for the requirements for opening a company in this country, for the documents which must be prepared when registering the business and the approvals which must be obtained.
However, the Company Act also provides for other actions, such as:
- mergers and acquisitions;
- the accounting requirements companies must comply with;
- corporate governance requisites;
- company liquidation;
- company dissolution.
Foreign investors interested in Indonesia company incorporation can contact our local agents for assistance in preparing the documents for registering the company with the Trade Register. We can also assist in other actions as mentioned in the Company Law.