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Merger & Acquisitions (M&A)

Streamlined Solutions for Merger & Acquisitions (M&A) Success

We assist clients in the business transaction roadmap, share, and asset acquisition transactions, reorganizations, mergers & acquisitions. Providing a comprehensive identification of legal issues, ensuring regulatory compliance, and document preparation before entering into deals and transactions.

Types of Merger & Acquisitions transactions under Indonesian Law which we can assist you:

  • Integration Merger
    Two or more companies merge, all assets and liabilities are legally transferred to one of the companies, and the remaining company is legally liquidated.
  • Consolidation Merger
    Two or more companies merge to form a new company, and the existing companies are legally liquidated after the merger, all assets and liabilities are transferred to a new company.
  • Shares or Assets Acquisitions
    A company or individual acquires shares of another company resulting in a change of control in that company.

How do we assist you with Merger & Acquisitions (M&A):

  • We conduct legal due diligence to identify potential legal risks and liabilities
  • We provide legal advice on legal compliance, which may encompass security laws, antitrust regulations, investment laws, and related regulations
  • We structure the M&A deal to optimize benefits for your company, taking into consideration your business objectives, legal consequences, and other legal consideration
  • We evaluate legal risks and propose mitigation strategies, which may involve legal procedures, representations, warranties, and other protective measures.

Why do you need our legal assistance on your Merger & Acquisitions (M&A) transaction?

  • We make sure that the legal aspects of the M&A transaction are adequately addressed and that your business interests are safeguarded
  • We minimize the potential legal risks of minor errors and negligence that could potentially jeopardize the transaction
  • We provide tactical advice during negotiation
  • We provide valuable legal guidance on how best to structure the transaction, conduct thorough due diligence, and identify both risks and opportunities

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Frequently Asked Questions

No, you cannot hold both at the same time. You must choose between the Work Permit KITAS and the Investor KITAS depending on your role in Indonesia, whether it is as an employee or an investor.

What is a Company Registry document?

A Company Registry document is a formal record by Indonesian Ministry of Law and Human Rights that contains key information about a registered company in Indonesia, such as its legal name, address, shareholders, and directors.

Why is it important to check a company’s background before doing business?

Conducting a background check helps you verify a company’s legitimacy and legal standing, minimizing risks and ensuring trustworthiness.

What information can be obtained from a Company Registry search?

You can obtain details like the company’s legal status, registration number, shareholders, board of directors, authorized capital, and business activities.

What should I do if a company’s registry details seem suspicious?

Consult with our lawyers immediately to investigate further and ensure that all necessary legal actions are taken to protect your interests.

Is it possible to check whether a company has legal disputes or cases against it?

Yes, it needs further investigation.

Can I check the history of changes in a company’s structure?

Yes.

What types of company can I conduct background checks?

It is for foreign-owned company in Indonesia (PT Penanaman Modal Asing (PT PMA) and local company in Indonesia (PT PMDN).

The Industrial Relations Court is responsible for resolving employment disputes that cannot be settled through bipartite negotiations, mediation, or tripartite through Local Manpower Institution. This court handles disputes related to termination, wages, collective labor agreements, and etc.

What is a Cross-Border Tax Opinion?

A Cross-Border Tax Opinion provides expert analysis and advice on how Indonesian tax laws apply to your international business transactions. It helps you understand and manage tax obligations when dealing with foreign income, investments, and operations.

What are the common issues addressed in a Cross-Border Tax Opinion?

Common issues include managing double taxation, understanding withholding tax on foreign payments, navigating tax treaty benefits, and addressing transfer pricing concerns.

Is a Cross-Border Tax Opinion legally binding?

While a Cross-Border Tax Opinion is not legally binding, it offers authoritative guidance based on the current interpretation of Indonesian tax laws. It’s a critical tool for informed decision-making and compliance.

What information do I need to provide for a Cross-Border Tax Opinion?

We’ll need details about your business structure, the nature of your international transactions, relevant financial data, and any existing tax documentation. The more information you provide, the more precise our analysis can be.

What are the tax treaties that Indonesia has in place, and how do they affect my cross-border transactions?

Indonesia has tax treaties with various countries to avoid double taxation and prevent tax evasion. These treaties can impact how your international income is taxed, offering potential tax reliefs. We help you understand and apply these treaty benefits effectively.

What is a permanent establishment, and how does it impact my tax obligations?

A permanent establishment (PE) is a fixed place of business through which a foreign enterprise conducts business in Indonesia. If your business activities create a PE, you may be subject to Indonesian corporate income tax. We can help you determine if your operations constitute a PE and advise on managing the tax implications.

How does Indonesian tax law treat digital services provided from abroad?

Digital services provided by foreign companies to Indonesian consumers may be subject to Value Added Tax (VAT) and other local taxes. Our services help you navigate these regulations and ensure proper tax compliance for your digital operations.

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.

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.

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.

What is a Legal Opinion?

A Legal Opinion is a formal written document from a lawyer that provides legal advice or interpretation on specific legal issues based on the applicable laws and regulations.

When do I need a Legal Opinion?

You need a Legal Opinion when facing complex legal issues, entering contracts, disputes, or when clarity on specific legal points is necessary for business decisions.

What are the typical contents of a Legal Opinion?

A Legal Opinion usually includes an introduction, the legal context, a detailed analysis of the relevant laws, and the lawyer’s conclusions and recommendations.

What areas of law do you provide Legal Opinions on?

We cover various areas, including corporate law, foreign investment, employment law, business disputes, and regulatory compliance in Indonesia.

Are Legal Opinions required for business transactions in Indonesia?

While not always mandatory, Legal Opinions are often requested in such business disputes and major transactions like mergers & acquisitions, or financing to clarify legal risks.

How do Legal Opinions assist foreign investors in Indonesia?

Legal Opinions help foreign investors navigate Indonesian regulations, ensuring their investments comply with local laws and reducing the risk of legal issues.

How long does it take to receive a Legal Opinion?

The timeframe depends on the complexity of the issue, typically ranging from a few days to a couple of weeks.

What is the cost of obtaining a Legal Opinion?

Costs vary based on the complexity of the legal issue and the required research. We offer transparent fee structures after understanding your needs.

Do you provide Legal Advice for startups and new businesses?

Yes, we regularly advise startups and new businesses, particularly regarding compliance, contracts, and foreign investment regulations in Indonesia.

Can Legal Opinions be used in court?

Yes, Legal Opinions can serve as important references or supporting documents during court proceedings or disputes, but they are not legally binding.

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