UNDEFINITED AUTHORIZE CAPITAL IN COMPANY ESTABLISHMENT ACCORDING GOVERNMENT REGULATION NUMBER 29 YEAR 2016 RELATED OF “EAZY OF DOING BUSINESS” IN INDONESIA

Nur Hayati (2016) Undefinited Authorize Capital In Company Establishment According Government Regulation Number 29 Year 2016 Related Of “eazy Of Doing Business” In Indonesia

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ABSTRACT

To expedite the development process and economic growth through investment, the Government has taken steps to increase of business in Indonesia. In consideration of the above - mentioned points, it is necessary to change the authorized capital of a Limited Liability Company into an amount left to the discretion of the founders of a Limited Liability Company by agreement, on condition that the founders of a Limited Liability Company have net assets within the criter ia for micro, small, and medium business. The government policy to give founders of Limited Liability Company discretion to set the amount of authorized capital aims to increase investment as regulate by Government Regulation Number 29 of 2016. According h ierarchy of law, government regulation lower than act, so the substance or government regulation cannot contradictive with the substance of the act. This study will be analyzed about the different of those regulations with normative method. The major issue are finding answer about question “how about binding strength of government regulation number 29 of 2016 compare the act number 40 of 2007” and “how about legality of Company who establish according government regulation number 29 of 2016. Finally, we hav e conclusion that substance about authorize capital of regulation number 29 or 2016 is not conflict with act number 40 of 2007. We can look that as a discretion who made government to support the program of “eazy of doing business” in Indonesia. Looking from hierarchy of those regulations, although regulation number 29 or 2016 up down than act number 40 of 2007 that can make special rules as not conflict.

Keywords : Authorize Capital, Limited liability Companies, Business, Law