Posts Tagged ‘Company Law’

EXPANSION OF BUSINESS IN A PMA COMPANY: MORE INVESTMENT NEEDED?

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When planning to expand a PMA Company, one of the most important things is to determine whether such expansion is classified as a diversification of business, or as an expansion of business which must be followed by an expansion of investment. Since the minimum investment for PMA Company must be above IDR 10 billion, it…

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WHO CAN SIGN A CONTRACT ON BEHALF OF A COMPANY?

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In business, executing deals and finalizing transactions is conducted by signing a contract. Aside from ensuring the contents of the contract is in line with the prevailing laws and regulations, it is also important to know which person can sign a contract on behalf of a company, so that the contract can be legally executed.…

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LEGAL COMPLETION OF OWNERSHIP TRANSFER OF SHARES

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When transferring ownership of shares issued by a Limited Liability Company (PT), the transaction does not stop when the Sales and Purchase Agreement is signed. Learn more about the completion of transfer of shares, and when does the ownership of shares is deemed to have been transferred to the new shareholder. In transferring the rights…

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CORPORATE CRIMINAL LIABILITY IN INDONESIA

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Even though corporations are classified as legal subjects in Indonesia, and can be held liable for criminal offenses in several prevailing laws in Indonesia, it is very rare for a corporation to be charged with criminal offense, instead passing the liability to the Director or the member of Board of Directors. With the new Supreme…

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OBLIGATIONS RELATED TO LOAN FROM FOREIGN PARENT COMPANY TO INDONESIAN SUBSIDIARY

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In order to finance their subsidiaries in Indonesia in the form of PT PMA, many foreign parent companies enter into loan agreements with their subsidiaries. Learn more about the obligations applicable to Indonesian subsidiaries that receive loan from their parent companies. It is common for foreign subsidiary companies (Perseroan Terbatas Penanaman Modal Asing or “PT…

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INCREASE OF PAID-UP CAPITAL FOR PMA COMPANY

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With the growth of the business, and the financial requirement of the Company, General Meeting of Shareholders (“GMS”) can decide to increase the paid-up capital of a Company, to increase the equity and value of the Company itself. The process to increase the paid-up capital includes several steps, especially if the Company is a foreign…

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