Limited Liability Company (\u201cLLC\u201d) establishment procedure in Indonesia consists of various factors ranging from a certain amount of capital to numerous documents that must be owned. The task of an LLC establishment can prove to be difficult. In this article, we\u2019ll discuss the topic of<\/span> LLC\u2019s capital structure <\/span>that will entail details regarding the new LLC regulations and many more. <\/span><\/p>\n\n\n\n Taking the latest regulation as reference, Omnibus Law, Article 109 (3) states that a <\/span>Company is required to have authorized capital, t<\/span>he amount of this capital is determined based on the decision of the company founder and accordingly, <\/span>at least 25% of the authorized capital must be <\/span>fully issued<\/span> and <\/span>paid-up<\/span>.<\/span> This regulation amend some parts of its preceding law, namely Law Number 40 of 2007 on Limited Liability Companies (\u201cLaw 40\/2007\u201d). <\/span>According to Law 40\/2007<\/span>, <\/span><\/p>\n\n\n\n \u2018<\/span>Paid Up Capital\u2019<\/span> <\/strong>means <\/span>any amount (even if the capital concerned hasn\u2019t been paid in full) of money that has already been paid by investors in exchange for shares of stock, when the amount of issued share capital has already been fully paid, the \u2018Paid Up Capital\u2019 has become <\/span>\u2018Paid Up Share Capital<\/span><\/strong>\u2019. Meanwhile, <\/span>\u2018Issued Capital<\/span><\/strong>\u2019 means the value of shares the company can actually issue to potential investors, the total amount of shares that have been given to shareholders will then be called <\/span>\u2018Issued Share Capital\u2019<\/span><\/strong>. <\/span><\/p>\n\n\n\n Note<\/span><\/strong>: The fully issued and paid-up capital is proven by a valid deposit receipt and any subsequent issue of shares that are performed each time (to increase issued capital) that must be fully paid-up.<\/span><\/p>\n\n\n\n Article 36 (1) of Law 40\/2007 states, \u201c<\/span>A Company is prohibited from issuing shares to be owned by itself or to be owned by another company whose shares are directly or indirectly owned by the Company.<\/em><\/span>\u201d This excludes, however, in situations where ownership of shares are acquired from transfer due to law, grant, or bequest.<\/span> On acquiring shares through mentioned means, the shares concerned must be transferred to another party (not prohibited from owning shares in the Company) within a period of 1 year after the date of acquisition.<\/span><\/p>\n\n\n\n Stay up to date for more of this insights via our company website: <\/span>SELARAS LAW FIRM<\/span><\/a><\/p>\n\n\n\n Selaras is a Market Entry and Investment Consulting Firm. We provide strategic consulting for your investments and provide various services to companies, investors and individuals doing business in Indonesia. From remote hiring to setting up local operations, we can help.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Limited Liability Company (\u201cLLC\u201d) establishment procedure in Indonesia consists of various factors ranging from a certain amount of capital to numerous documents that must be owned. The task of an LLC establishment can prove to be difficult. In this article, we\u2019ll discuss the topic of LLC\u2019s capital structure that will entail details regarding the new […]<\/p>\n","protected":false},"author":3,"featured_media":1940,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"_joinchat":[],"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/selaraslawfirm.com\/wp-json\/wp\/v2\/posts\/1939"}],"collection":[{"href":"https:\/\/selaraslawfirm.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/selaraslawfirm.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/selaraslawfirm.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/selaraslawfirm.com\/wp-json\/wp\/v2\/comments?post=1939"}],"version-history":[{"count":1,"href":"https:\/\/selaraslawfirm.com\/wp-json\/wp\/v2\/posts\/1939\/revisions"}],"predecessor-version":[{"id":1941,"href":"https:\/\/selaraslawfirm.com\/wp-json\/wp\/v2\/posts\/1939\/revisions\/1941"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/selaraslawfirm.com\/wp-json\/wp\/v2\/media\/1940"}],"wp:attachment":[{"href":"https:\/\/selaraslawfirm.com\/wp-json\/wp\/v2\/media?parent=1939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/selaraslawfirm.com\/wp-json\/wp\/v2\/categories?post=1939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/selaraslawfirm.com\/wp-json\/wp\/v2\/tags?post=1939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a>What\u2019s the Law On LLC\u2019s Capital Structure?<\/span><\/strong><\/h2>\n\n\n\n
<\/a>What\u2019s the difference Between \u2018Issued Capital\u2019 and ‘Paid Up Capital\u2019?<\/span><\/strong><\/h2>\n\n\n\n
<\/a>Prohibitions Concerning Ownership of Company\u2019s Shares<\/span><\/strong><\/h2>\n\n\n\n
<\/a>SELARAS COMPANY PROFILE<\/span><\/strong><\/a><\/h2>\n\n\n\n