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Latest Columns Authorized Capital

  • Share Capital Requirements PT Companies Amended Again

    Share Capital Requirements PT Companies Amended Again

    The Indonesian Government recently issued Government Regulation no. 29 of 2016 regarding Amendments in Authorized Share Capital of a Limited Liability Company (New Regulation). The New Regulation revokes the Government Regulation 7 of 2016 (Old Regulation). Basically the New Regulation regulates the same matter as the Old Regulation, namely it sets new regulations regarding the authorized and paid-up capital of a PT company.

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  • Share Capital Requirements Amendment for Small Companies Indonesia

    Share Capital Requirements Amendment for Small Companies Indonesia

    The share capital requirement is regulated in article 32 of Indonesian law number 40 of 2007 regarding Limited Liability Company (Company Law). Paragraph 3 of the same article regulates that changes in the minimum amount of authorized capital as set out in paragraph (1) shall be stipulated by Government Regulations. As implementation of the paragraph 3, recently Government Regulation 7 of 2016 regarding Amendments in Authorized Capital of a Limited Liability Company (Government Regulation) was issued. In this column we discuss the implications of the new Government Regulation.

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  • Shares and Capital in a Limited Liability Company in Indonesia

    Shares and Capital in a Limited Liability Company in Indonesia

    The general provisions regarding shares in an Indonesian limited liability company (PT for local companies and PT PMA for foreign companies in Indonesia) are regulated in Indonesian Law number 40 of 2007 concerning Limited Liability Companies (Company Law). The Company Law regulates the minimum authorized capital and paid-up capital, and stipulates procedural rules related to the purchase, ownership and sales of shares.  In this column we discuss the general rules governing shares of a limited liability company in Indonesia.

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