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Company Registry Document (Company Background Check)

Prevention is Better than Cure

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

  • Legal entity type and status
  • Company domicile
  • List of business activities
  • Date of deed changes

• Capital and Shareholder details

  • List of shareholders
  • List of directors and commissioners
  • Amount of authorized and paid-up capital

• History of the Indonesian company (PT)

  • All changes in the capital
  • All changes in shareholders, directors, and commissioners
  • All changes in the deed

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Frequently Asked Questions

Severance pay is calculated based on the employee’s length of service and the reason for termination. The formula includes severance pay, service appreciation pays (if applicable), and compensation for untaken leave or other rights as per Government Regulation No. 35 of 2021.

In most cases, changing visa types (e.g., from a Business Visa to a KITAS) requires leaving Indonesia and applying from abroad. However, specific visas, such as a temporary visa to KITAS, may be converted under certain conditions. We can guide you on the best approach based on your situation.

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.

There are two types of employment contracts: Fixed-term contracts (Perjanjian Kerja Waktu Tertentu or PKWT) and Indefinite-term contracts (Perjanjian Kerja Waktu Tidak Tertentu or PKWTT). Fixed-term contracts are used for specific time periods or projects, while indefinite-term contracts are open-ended.

If your employment contract ends, your employer must report the termination to the immigration office, and your KITAS will be canceled. You are required to leave Indonesia unless you secure another sponsorship or transition to a different visa type.

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.

In the event of a Merger or Acquisition (M&A), employees’ rights and contracts must be maintained, or the new employer must negotiate new terms with the affected employees. Severance and compensation payments may be applicable if there are changes to the employment terms or if employees are terminated as a result of the merger.

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.

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