Suppose you are a company or individual business owner intending to enter into an important business transaction or any legal matter with another Indonesian company (PT). In that case, you may wish to conduct research or check on your counterparty’s profile first.
It is important to conduct preliminary checks on your counterparty background profile before having such a transaction with them, this is because some businesses may be unreliable such that they do not perform their obligations, whether these are contractual, administrative, or illegal which may lead to serious business losses.
The company registry in Indonesia comprises detailed information on the legal background of the Indonesian company (PT), as it is registered in the Indonesian Ministry of Law and Human Rights.
The report contains the following:
• Company Status and details
• Capital and Shareholder details
• History of the Indonesian company (PT)
Renewals must be processed before your KITAS expires. We recommend starting the process well in advance to avoid overstaying penalties.
Layoffs must be carried out according to the procedures outlined in Government Regulation No. 35 of 2021. Employers are required to attempt negotiations with the employee and offer compensation packages, including severance pay, long-service pay, and compensation for rights such as untaken leave.
The standard working hours in Indonesia are 40 hours per week, with either 7 hours per day for 6 days a week or 8 hours per day for 5 days a week. Overtime is allowed, but it should not exceed 4 hours per day or 18 hours per week, and overtime pay must be provided as per Government Regulation No. 35 of 2021.
What is a Company Deed of Amendment?
A Company Deed of Amendment is a legal document that updates or changes the original company deed, reflecting alterations in company structure, name, address, or other key details.
What is the difference between a Deed of Amendment and a new company establishment?
A Deed of Amendment updates an existing company’s details, while a new company establishment involves creating a new legal entity with its own deed.
When is a Deed of Amendment necessary?
It is needed when there are significant changes in the company’s management, business activities, address, or when updating the company’s capital structure.
What are the benefits of amending the company deed?
It ensures that the company’s legal documents reflect the current business structure and operations, which can be crucial for legal compliance and business transactions.
What happens if the Company Deed of Amendment is not filed?
Failure to file the amendment may result in discrepancies between the company’s actual situation and its legal documents, which can lead to compliance issues and legal complications.
Can amendments be made to a company’s articles of association without changing the deed?
No, changes to the articles of association generally require an amendment to the company deed to reflect these changes officially.
What are the types of Company Liquidation in Indonesia?
liquidation can be either voluntary or involuntary. Voluntary liquidation occurs when the company’s shareholders decide to wind up the company, while involuntary liquidation is initiated by a court order due to insolvency or other legal reasons.
What are the steps involved in liquidating a company?
The main steps include: Board of Directors Resolution, Appointment of Liquidator, Notification, Settlement of Debts, Asset Distribution, Final Report and Deregistration.
How long does the liquidation process take?
The process can vary depending on the complexity of the company’s affairs and the efficiency of the liquidator, but it typically takes between 6 to 12 months, or more.
Can the company’s debts be waived during liquidation?
No, the company must settle all its debts before it can proceed with liquidation. If there are insufficient assets to cover the debts, the company will be declared insolvent.
Can the company’s directors or shareholders be held liable after liquidation?
Directors or shareholders are generally not liable beyond their investments. However, if misconduct or fraud is involved, they may face legal consequences.
Are there any tax implications during liquidation?
Yes, the company may need to settle any outstanding taxes.
What happens if the company’s assets are insufficient to cover its liabilities?
If assets are insufficient, the company will be declared insolvent. The liquidator will follow the legal process for insolvency.
What is the process for acquiring property in Indonesia?
The process involves several key steps: identifying and assessing the property, conducting due diligence, negotiating terms, drafting and signing a Sale and Purchase Agreement, and completing the transfer of ownership through the relevant land office. Legal consultation is crucial to ensure compliance with Indonesian regulations.
Can foreigners’ own property in Indonesia?
Foreigners cannot directly own freehold land in Indonesia. However, they can acquire property through a long-term leasehold arrangement or through a foreign investment company (PT PMA). Consult with our firm to explore the best options.
What is the difference between Hak Milik, Hak Guna Bangunan, and Hak Pakai?
Hak Milik (Freehold Title): Full ownership, available only to Indonesian citizens.
Hak Guna Bangunan (Building Rights): Allows construction and use of land for up to 30 years, extendable.
Hak Pakai (Usage Rights): Allows use of land for specific purposes, often for up to 25 years, extendable.
What should be included in a Sale and Purchase Agreement?
The agreement should detail the property description, purchase price, payment terms, timeline, obligations of each party, and any conditions precedent. Our legal team ensures all necessary elements are covered to protect your interests.
What happens if there is a dispute over property ownership?
Disputes can be resolved through negotiation, mediation, or legal proceedings. It’s crucial to address any disputes promptly and seek legal advice to protect your interests. Our firm offers expert guidance and representation in property disputes.
How can your firm assist with property transactions?
We provide comprehensive legal services, including due diligence, drafting and reviewing agreements, ensuring regulatory compliance, and handling all legal aspects of property acquisition to ensure a smooth and secure transaction.
Employment contracts must be in writing and should clearly outline both employer’s and employee’s rights and obligations, including job responsibilities, working hours, salary, benefits, and the duration of employment. The contract should comply with Indonesian Manpower Law No. 13 of 2003, as amended by the Job Creation Law.
Employers may only deduct wages for reasons permitted by law, such as social security contributions, taxes, union dues, or specific employee agreements (e.g., loans or damages caused by the employee). Deductions must not exceed 50% of the employee’s monthly wage.
Can a foreign marriage be legally recognized in Indonesia?
Yes, a foreign marriage can be recognized in Indonesia under certain conditions. It must comply with the laws of the country where it took place and meet specific requirements outlined by Indonesian law, such as registration with Indonesian government authorities and Indonesian court.
How do I register a foreign marriage in Indonesia?
To register a foreign marriage in Indonesia, you typically need to submit a marriage certificate issued by the foreign country’s competent authority to the Indonesian Civil Registry Office (Dinas Kependudukan dan Catatan Sipil). Additional documents may be required depending on local regulations. If you do not register it and it has been exceeded by more than 1 (one) year, registration is legally required through the Indonesian court mechanism.
What are the legal implications of not registering a foreign marriage in Indonesia?
Failure to register a foreign marriage in Indonesia may lead to not having a legal standing and complications in legal matters such as property ownership and inheritance matters. It is important to ensure proper registration to secure legal recognition and rights in Indonesia.
How can I file for Divorce in Indonesia?
In Indonesia, divorce can be filed through the Religious Court (for couples of the same Muslim religion), or the District Court (for Non-Muslim religion and mixed-religion marriages). You must meet certain grounds for divorce as stipulated in Indonesian law.
What are the grounds for divorce in Indonesia?
Grounds for divorce in Indonesia may vary, it can include adultery, cruelty, abandonment, absence for a certain period, irreconcilable differences, etc.
What is the process of divorce in Indonesia?
The divorce process involves filing a petition, attending mediation (it is required by law), attending court hearings process, and presenting evidence to support grounds for divorce, then an Indonesian court will issue a court decision.
How long does it take to finalize a Divorce in Indonesia?
The duration varies depending on the complexity of the case and whether the parties agree on terms. On average, it can take 6 (six) months, or it will be faster if both parties have agreed on terms.
How can I plan for Inheritance in Indonesia?
Estate planning in Indonesia involves drafting a will (wasiat) to specify asset distribution and minimize tax implications. Consulting with our legal expert can help you ensure your wishes are legally documented and executed.
What is the Prenuptial Agreement?
Prenuptial Agreement, often referred to as “Perjanjian Pra Nikah” in Indonesian, is a legal contract entered into by couples before marriage. It outlines the rights and responsibilities of each party regarding property ownership and distribution, financial arrangements, and other assets in the event of divorce.
What is the Postnuptial Agreement?
Postnuptial Agreement, known as “Perjanjian Setelah Nikah” in Indonesian, is similar to a Prenuptial Agreement but is entered into after marriage.
What are the benefits of having a Prenuptial or Postnuptial Agreement?
These agreements provide certainty and predictability in asset division, protect family wealth, and reduce conflicts in the event of divorce or separation. They allow couples to plan for the future and safeguard their financial interests.
Yes, as an investor, you are allowed to manage and oversee your investments. However, the Investor KITAS does not permit traditional employment for other companies; it only covers activities related to managing your investments.
