Recently, the Ministry of Law and Human Rights (Ministry) issued regulation number 3 of 2017 on the Notary Fees for the Establishment of a Limited Liability Company for Micro, Small and Medium Sized Enterprises (New Regulation). The New Regulation is an implementation of the 12th economic policy package of the Indonesian Government. This economic policy package is an effort of the Indonesian Government to reduce business costs and improve the business climate for investors.
Notary Fees Standardization
The New Regulation requires that all notaries impose notary fees to clients in line with the fees as set out in the New Regulation. The New Regulation limits its scope to the notary fees in connection with the establishment of micro, small and medium sized limited liability companies (MSME). The fees are categorized in two categories, based on the amount of authorized share capital:
- MSME with a maximum authorized share capital of IDR 25 million; and
- MSME with a maximum authorized share capital of IDR 1 billion.
The New Regulation sets the following standard notary fees for in connection with the establishment of MSMEs:
- MSME with a maximum authorized capital of IDR 25 million:
- Company name approval: IDR 300,000
- Deed of establishment: IDR 500,000
- Announcement in the state gazette: IDR 200,000
- MSME with a maximum authorized capital of IDR 1 billion:
- Company name approval: IDR 600,000
- Deed of establishment: IDR 4 million
- Announcement in the state gazette: IDR 400,000
Please note that foreign investment limited liability companies (PT PMA) are categorized as large scale companies. The above notary fee standards only apply to local PT companies, of which shares are 100% by Indonesian individuals or companies. For PT PMA companies there is no standard notary fee regulated, and therefore notaries may decide freely how much they wish to charge for above services.
The New Regulation has been in force since 31 March 2017.
This column is provided by PNB Law Firm Jakarta