Company Registration & Legal Services
A company merger is a process in which two or more companies combine their businesses to form a single entity. In Indonesia, company mergers are regulated by Law No. 40 of 2007 on Limited Liability Companies (“Company Law”).
In Indonesia, a company merger must be approved by the shareholders of each company involved, as well as by the Ministry of Law and Human Rights. The companies must also obtain approval from other relevant authorities, such as the Indonesian Competition Commission.
After the merger is approved, the companies must complete a number of legal procedures, including the transfer of assets and liabilities, the transfer of shares, and the registration of the new entity with the relevant government authorities.
It is important to note that a company merger can have significant legal and financial implications, and it is therefore important for companies to seek the advice of legal and financial professionals before proceeding with a merger.
Company mergers in Indonesia are stipulated through the Law No 40 of 2007.
From a law perspective, mergers would take at least 30 days to achieve completion. However, the process may also be longer due to negotiations and due diligence processes.
Legal due diligence consists of an examination of the legal affairs of the target company in order to uncover any risks and provide detailed information regarding the company’s legal situation. A legal due diligence exercise often improves the bargaining power of the buyer.
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