ENGLISH EDITION
WHETHER THE DEED OF ESTABLISHMENT OF A LIMITED LIABILITY COMPANY CAN BE DRAWN UP IN ENGLISH LANGUAGE?
On numerous occasions many foreign investors asked us a question: “Can the Deed of Establishment of a Limited Liability Company Be Drawn Up in English?”
The Deed of Establishment of a limited liability company (perseroan terbatas) must be made by an Indonesian Notary and further to be approved by the Minister of Law and Human Rights.
Referring to Article 7 of the Law Number 40 of 2007 Regarding Limited Liability Company and also Article 43 of the Law Number 2 of 2014 Regarding Notary Profession, the Deed of Establishment of a limited liability company must be made in Bahasa Indonesia, therefore it is not permitted to be made in English or other foreign languages.
How can investors understand the contents of the Deed of Establishment of a limited liability company which must be made in Bahasa Indonesia? In this case investors can choose several alternatives as follows:
1. Ask the Notary to Explain the Contents of the Deed of Establishment.
Article 43 – 44 of the Law Number 2 of 2014 Regarding Notary Profession regulates the obligation of a notary to explain or translate the contents of the deed into a language that the person present before a notary understands.
2.Translate the Deed of Establishment or Request for an Official Translation.
Investors can be accompanied by a translator or an interpreter to interpret the contents of the Deed of Establishment being read and explained by the notary.
Another option is to translate the contents of the Deed of Establishment either before or after signing the Deed of Establishment. Does the translation have to be done by a sworn translator? There is no specific regulation that requires the obligation for the translation of the Deed of Establishment to be carried out by a sworn translator, this depends on the investor’s preference.
3.Ask Lawyer’s Assistance to Explain the Content of the Deed of Establishment.
It is important to use the services of a lawyer who can speak and understand English since the lawyer will ensure that the investor’s interests are properly accommodated in the Deed of Establishment (which in most cases a notary cannot do).
For further consultation please contact us at (021) 29067264 or email: info@nnplawfirm.com.
Reference:
- Law Number 40 of 2007 Regarding Limited Liability Company.
- Law Number 2 of 2014 Regarding Notary Profession.
