Legal Service Fees for the Establishment of Limited-Liability Companies by UMKM Updated

With the ultimate objective of increasing Indonesia’s ease-of-doing-business ranking, the Ministry of Law and Human Rights (“ Ministry ”) has now updated the costs involved in the establishment of limited-liability companies by micro-, small- and medium-scale enterprises (usaha mikro, kecil dan menengah– “ UMKM ”) through the issuance of Regulation of the Ministry No. 8 of 2018 on Legal Service Fees for the Establishment of Limited-Liability Companies by Micro-, Small- and Medium-Scale Enterprises (“ Regulation 8/2018 ”). [1] Prior to the issuance of Regulation 8/2018, these same matters were previously regulated under Regulation of the Ministry 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 3/201 7”). [2] Classification of Legal-Service FeesAll notaries are required to impose the fees stipulated under Regulation 8/2018 when providing certain legal services relating to the establishment of limited-liability companies by UMKM and these fees differ, based on the relevant levels of authorized capital. Regulation 8/2018 currently sets three types of UMKM based on their level of authorized capital, as follows: [3]