Notary Fees for the Establishment of Limited-Liability Companies by UMKMs

In a bid to enhance Indonesia's ease-of-doing-business ranking, to improve life for its small and medium-sized companies and to therefore attract more investment into the country, the government introduced its 12^th economic-policy package last year, which in essence aims to simplify procedures, as well as reduce the various costs involved in the establishment of limited-liability companies, specifically micro-, small- and medium-scale enterprises.[1]
 
In line with said policy, the Ministry of Law and Human Rights Regulation (“Ministry”)has issued Regulation No. 3 of 2017 on Legal Service Fees for Notaries for the Establishment of Limited-Liability Companies by Micro-, Small- and Medium-Scale Enterprises (“Regulation 3/2017”).
 
Regulation 3/2017 is aiming to ensure a greater ease of doing business for micro-, small- and medium-scale enterprises (usaha mikro, kecil dan menengah – “UMKM”) by setting thresholds for the various service fees which may be imposed by notaries upon UMKM in relation to the establishment of their businesses in form of limited-liability companies.[2]
 
Notary Fees: Classification
 
Regulation 3/2017 mandates that all notaries should impose the fees stipulated therein when providing certain legal services relating to the establishment of limited-liability companies by UMKMs. Said fees differ based on a UMKM’s level of authorized capital, as follows:[3]