Client Update: New Government Regulation on Changes to Authorized Capital of Limited Liability Companies

April 13, 2016


To improve the ease of doing business and for the purpose of acceleration of the national development and also taking into account the growth of start-up business, the Government of the Republic of Indonesia has promulgated the Government Regulation No. 7 of 2016 regarding Changes to Authorized Capital of Limited Liability Companies (“GR 7/2016”), which regulation is effective as of 21 March 2016.

This new regulation constitutes the implementing regulation as referred to in Article 32 (3) of Law No. 40 of 2007 regarding Limited Liability Companies (“Company Law”), which stipulates that the amount of authorized capital of limited liability companies as intended in Article 32 (1) of Company Law may be amended based on a government regulation in order to adjust with changes in economic conditions.


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Author : MDC