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Indonesia Lowers Limited Company Capital Requirement to Just US$15

Limited liability companies may now be launched with authorised capital as low as US$15 (IDR 200,000) under new rules introduced by the Indonesian government. Previously, the minimum required level was $3,800, with the official relaxation coming as part of a bid to lure SMEs out of the black economy and onto a more formal standing.

Under the new rules, the $3,800 authorised requirement is waived should the principals behind the formation of any given limited company be able to demonstrate their possession of an equivalent sum in terms of net assets. Proof of these assets needs to be electronically submitted to the country’s Ministry of Law and Human Rights within 60 days of the signing of a company’s deed of incorporation.

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