1.      When a company faces situations such as declaring bankruptcy, being acquired by another company, the expiration of its business term without renewal, or internal dissolution, it is required to apply for deregistration with the registration authority to terminate its corporate legal status

2.      Company deregistration can be due to both internal and external reasons. Internal reasons may include poor business performance, market downturns, etc. External reasons may include the revocation or cancellation of business qualifications, as detailed below:

·       The shareholders or the shareholders’ meeting make a resolution to dissolve the company;

·       The company is legally declared bankrupt;

·       The company’s articles of association specify a business term that has expired and will not be renewed;

·       The dissolution circumstances specified in the company’s articles of association or by law occur;

·       The company is dissolved due to reasons such as mergers, splits, etc.;

·       The company is forcibly dissolved by law;

·       The company’s business license is revoked or canceled, followed by deregistration.

3.      The company is formally terminated after complying with the liquidation procedures and receiving the revocation from the Indonesian Investment Coordinating Board (BKPM). Generally, the process of deregistering a company takes longer than the registration process.

4.      When deregistering a company, the company’s tax card must also be canceled. Canceling the tax card requires the company to first complete the payment of taxes and file the tax returns.