There are many forms of cooperation in the business world. Including in Indonesia, where a certificate of incorporation of company is needed to overcome some problems between groups. The collaboration of businesses can be done between at least two companies, and both of them have similar business characteristics. To achieve this agreement, you need to know the requirements.
Certificate of incorporation of company and Its Business Types
- Acquisition
In Certificate of incorporation of company, an addition is defined as one of the companies have control to its net assets as an acquirer, and the acquired company’s operations described to issue shares, grant certain assets, and recognize liability.
- Interest Uniting
In a certificate of incorporation of company, this is a condition where business combination occur when shareholders of the companies that being merged are working together or jointly toward specific goals and have control over the whole. The control includes net assets, operations and endure all risks and benefits. It is clear that there is no acquirer in this type.
Obtain Certificate of incorporation of company in Indonesia
The definition of certificate of incorporation of company, it’s a necessary permission for a company to merger so it can carry out products commercialized by the merger companies. There are requirements must be obeyed to fulfill this, such as;
- Letter of application certificate of incorporation of company. This letter must be signed by the directors or head of company for stamp duty. Later on, it will be addressed to Governor.
- Copy of Investment Registration for a certificate of incorporation of company. Alongside with business license, investment expansion approval letter, expansion business license, and permit principle of investment expansion.
- Some administrative requirements for a certificate of incorporation of company, namely, photocopy of Identity card, photocopy of the company’s articles of association that given by Minister of Law also Minister of Human Rights. (it is specified for the applicants who are Indonesia business entities), and Company Establishment deed and amendment photocopy.
- Other requirements of the certificate of incorporation of company in Indonesia that regulated based on each countries policies or local regulations.
Certificate of incorporation of company and Its Business Incorporation Form
- Horizontal Merger of Business Incorporation
It can be defined as the merger of similar companies that turn into one, more larger company. The purpose of a certificate of incorporation of company from this merger is to make it more efficient for companies, and it’s also to avoid the competitors among some similar groups.
- Vertical Merger of Business Incorporation
It can be defined as the merger of some previous companies. These enterprises have a mutually beneficial relationship with each other. To make it easier to understand, for example, a company join merger to maintain the certainty of raw sources or raw materials, so the production is continuing.
- Conglomerate Incorporation
This incorporation means that the combination of horizontal merger and vertical merger. This combination happened when companies have a different type of businesses, for example, a transportation business to join the electronic business to make the cost of delivery more efficient.
- Business Combination regarding Law
For a certificate of incorporation of company, some terms may be useful to additional knowledge, such as merger, consolidation, an affiliate. The difference between alliance and subsidiary is that for consolidation it builds the new company but for branch only buying more or all shares.
Those are the brief explanation bout certificate of incorporation of company in Indonesia that maybe we can summarize for you. There are still many things about this we need to dig for better references. Hopefully, this article will be used and shared continuously around your surrounding.