Notary service is essential for business owners and soon to be entrepreneurs. Unlike other foreign countries that need lawyers to establish a company, Indonesia uses notaries. Notaries are a legacy from the Dutch from when they colonised Indonesia. In general, the main job of a notary is to legalize documents. It includes company establishment documents or an amendment in a company structure. Without notary services, entrepreneurs are unable to operate their businesses in Indonesia.
In the past, the government prohibits each notary to provide their services outside the region they registered. However, in recent years, any notary can legalize documents regardless of their business domicile. It makes it a lot easier for entrepreneurs to commission their trusted notary to do the services. Aside from legalizing documents, notaries can also advise entrepreneurs about business establishments in Indonesia.
A lot of foreigners may find the local regulation complicated. It is especially true for establishing a new business in Indonesia. Without meeting the requirements, entrepreneurs cannot operate their businesses. Thus, foreign business owners should consult with a reliable notary before investing in any business in Indonesia. One of the options is MESO Serviced and Virtual Office. MESO legal services have been helping numerous companies from all over the globe to establish their business in Indonesia.
Notary Service for Company Establishment
Notary service for company establishment is crucial to get an approval and business license from the Ministry of Trade. Therefore, business owners must find notaries with a certificate and practice license. When a notary legalizes a business document, they are also vouching for the business. Thus, any misconduct from the business may also put the notary and their license at risk. Usually, notaries will also review the business before agreeing to do the services for the entrepreneurs.
Also, not all industries are open to foreign ownership. Therefore, a notary must check the regulations before setting up the company for the foreign entrepreneur. For instance, agriculture industries usually only allow partial foreign ownership. Once the notary reviews the business plan, they will collect the necessary documents from the clients. Then, they will start processing the documents and finally produce a company decree. A company decree is essential to attain a corporate tax number and open a local bank account.
In addition to a business establishment, any changes in company structure require a notary service. For instance, a change in director or if any shareholders want to sell their share. In these cases, the shareholders must hold a general meeting and have a notary attend as a witness. If the majority of all of the shareholders approve, then the notary will amend the company decree and note the changes.
No Notary, No Problem
As mentioned above, whenever a notary legalizes a document, they also put their reputation and license at risk. Thus, most notaries will only provide services for essential corporate documents like a purchase contract of a high-value item. For other agreements that are more operational by nature, notary services are unnecessary. In this case, the co-signees must sign the document on top of a stamp (materai).
For instance, an employment contract does not need a notary service to make it legal. The relationship agreement between the employer and employee follows the regulations written in the contract. Both parties must sign the paper under no coercion and on top of a stamp (materai). Thus, an employee can demand their rights as stated in the contract. On the other hand, an employer may terminate the employee if they breach any clauses.
Another type of document is an agreement between a business and its clients. For instance, a Terms and Conditions Agreement. When signing the documents, the business representative and the client do not need to have a notary as a witness. Similar to before, the clauses will regulate the agreement between the two parties. The two parties must sign on a stamp (materai) to legalise the document. Without materai the signature is not deemed legal. In that case, no parties can take legal actions against the other.
To get in touch with a trustable notary service, feel free to visit www.meso.co.id or contact us on (+62)812-1315-4189 (Whatsapp). You can also send us an email on cs@meso.co.id to inquire further on our available legal services.
