Closure of Local PT Company in Indonesia

When Company Closure is Required

Closure of a legal entity of PT (Perseroan Terbatas) type in Indonesia is necessary in cases when:

  • the company's operations have ceased

  • the business has become unprofitable or non-viable

  • the company does not conduct operations but remains registered

  • the founders have decided on liquidation

  • it is necessary to avoid administrative and tax penalties for failing to report

Having a registered but actually non-operating company can lead to tax debts and fines accumulation, as well as issues when registering new legal entities, visas, or licenses.

Requirements for Closing a PT Company

The official company liquidation procedure includes the following stages:

  • holding a general meeting of founders with a decision on liquidation

  • appointing a liquidator

  • publishing a liquidation notice in printed media

  • preparation of interim and final balances

  • settling all debt obligations and completing tax reporting

  • obtaining a tax office certificate (Surat Keterangan Fiskal)

  • closing the company's bank account

  • cancelling NIB and other registration data through the OSS system

  • notifying the Ministry of Justice and Human Rights of the liquidation completion

  • obtaining an official notice of entity cessation (SK Penghapusan Badan Hukum)

The procedure requires time, strict compliance with formalities, and interaction with various government bodies.

Timeframes

On average, the local PT company liquidation procedure takes 3 to 6 months. The timeframes depend on the following factors:

  • the region where the company is registered

  • the state of tax and accounting reports

  • the presence of debts and obligations to third parties

  • the speed of interaction with tax authorities and other agencies

Based on updated information, the process can be conditionally divided into stages:

  1. Verification, preparation, and submission of company liquidation documents** — takes about 3 weeks.

  2. NPWP revocation procedure** (includes tax inspection, certificate, and actual number revocation) — from 6 to 12 months.

Cost

The cost is calculated individually and depends on:

  • the amount of work (presence of debts, state of reports)

  • the need for documentation or accounting data restoration

  • the urgency of the procedure

The final amount is agreed upon after a preliminary analysis of the company's condition.

Important Remarks

  • The company is considered officially closed only after receiving liquidation documents from the Ministry of Justice and exclusion from the state register

  • Until the procedure is completed, the legal entity is obliged to submit tax and corporate reports

  • Closure of the company does not exempt from previously incurred obligations and debts

It is recommended to start the procedure as early as possible, especially if operations are suspended, to avoid fines and additional costs.

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