FIRST STEP: COMPANY DISSOLUTION
The following conditions may be the reason to dissolve a company:
- Based on the resolution of the General Meeting of Shareholders (here-in-after referred to as “GMS”);
- Expiration of the company’s establishment period as stipulated in its articles of association;
- Based on court order;
- Upon termination of a bankruptcy by a final and binding decision of the commercial court, the company’s bankrupt estate is not sufficient to cover the cost of bankruptcy;
- Because the company’s bankruptcy estate having been declared;
- Bankrupt is in the state of insolvency as governed by Law concerning Bankruptcy and Suspension of Obligations for Payment of Debt; or because the company’s business permit has been revoked, thus requiring the company to conduct liquidation under the laws and regulations.
SECOND STEP: LIQUIDATION
After the company dissolution has been done, the liquidation process can be started by appointing a Liquidator. The liquidator can be appointed from a third party or can be represented by the Board of Directors (act as Liquidator). Important things to be done by the Liquidator are as follows:
- Placing an announcement in a daily newspaper with national circulation and State Gazette;
- Notify Ministry of Law and Human Right (MOLHR) concerning the dissolution of the company to be recorded in the company registry specifying that the Company is under liquidation;
- Announcement to all employees on dissolution plan;
- Obtaining a letter of Acknowledgement from MOLHR;
- Revocation of Company’s licenses and company registries, such as NPWP and business license. This is important, especially the revocation of NPWP for requesting tax clearance!
- Settlement process (calculating assets, settlement of liability, etc.);
- Liquidation report.
 Article 142 paragraph (1) Law No. 40 of 2007 on Company Law