Here are the Requirements & Procedures for Closing a LLC

Corporate Secretary Service Indonesia – Perseroan Terbatas (PT) or Limited Liability Company (LLC) is one of the most widely used forms of business entity in the business world for various reasons, one of which is because LLC as a legal entity is guaranteed its continuity and has a legal subject separate from its founders or owners. Closing of Company in PT form is the process of removing the legal status of a company as a legal entity. When you want to close a PT, it means that KH Friend, as the owner of the PT, legally ends all activities and existence of the company.

What are these requirements and procedures? Well, to understand more about the requirements and procedures for PT closure, see the full overview below.

Basis for Closing a PT

Before understanding more about the requirements and procedures for Closing of Company partnership, we must first understand the reasons for closing the partnership itself. In addition to bankruptcy, there are several other reasons for the closure of a PT, including:

• Decision of the General Meeting of Shareholders (GMS)
• Expiration of the term of establishment of a PT
• Based on a court decision
• Insolvent company’s assets are not sufficient to pay bankruptcy costs
• The bankruptcy estate of the PT is in a state of insolvency
• Revocation of the PT business license

PT Closure Requirements

To be able to close a PT, there are several required documents that KH Friend must fulfill, including

• KTP and NPWP (TIN / Taxpayer Identification Number) of the director and committees;
• Deed of incorporation until the last amendment;
• Decree of the Ministry of Justice and Human Rights until the last amendment;
• Minutes of the GMS;
• Certificate of Company Domicile (SKDP);
• NPWP, Business License (SIUP) and TDP/NIB;
• Proof of PT’s monthly and annual tax reports.

Read Also: Do You Need a License in Indonesia?

PT Closure Procedure

According to Article 143(1) of the PT Law, closure activities can be recognized after the PT has completed the liquidation process and the liquidator’s accountability has been accepted by the GMS. In order to carry out the liquidation process, a PT must carry out the following steps:

• Conducting a GMS with the agenda of closing the PT and appointing a liquidator to carry out the liquidation process,
• Notify creditors and other related parties of the closure of the PT,
• Settlement of inventory and assets,
• The liquidator submits his account to the GMS,
• The liquidator announces the closure of the PT in a newspaper and notifies the Minister of the closure,
• The Minister removes the name of the PT from the register of companies, and
• The Minister publishes it in the State Gazette of the Republic of Indonesia (Berita Negara Republik Indonesia / BNRI).

Within a maximum period of 30 days from the date of closure, the liquidator is obliged to notify the closure to the creditors and the Minister. This is the explanation of the requirements and procedures for the closure of a PT. The process for closing of company, especially a PT, is a rather complicated procedure.

Considering that the closure is intended to end all activities and responsibilities of a PT, it is important for the owner or founder to ensure in advance the related obligations that must be fulfilled, including accounts payable, internal finances, taxation, and others.

Don’t worry about closing a company in Indonesia, because Portcorp is here as a solution for your business. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!