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^theconomic-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: ClassificationRegulation 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]