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.
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.
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:
Verification, preparation, and submission of company liquidation documents** — takes about 3 weeks.
NPWP revocation procedure** (includes tax inspection, certificate, and actual number revocation) — from 6 to 12 months.
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.
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.