Zero-Rised Financial Statement

Zero-balanced financial statements refer to equalising a company’s assets and liabilities to zero, a critical requirement for the de-registration of a business entity. Any company intending to initiate proceedings for voluntary business cessation in Indonesia must adhere to this stipulation.

Achieving a zero-balance state for business finances entails several steps. Initially, liquidation of all assets except the primary bank account must be completed. Concurrently, it is essential to settle all liabilities, clear all outstanding debts, and eliminate currently payable accounts and any contingent assets or liabilities that might emerge in the future. Unresolved dues owed to tax authorities or other governmental bodies must also be fully paid.

Furthermore, the company must ensure no pending tax credit exists and that the company’s register contains no lingering charges. Following the successful execution of these procedures, the closing financial reports correlating with the date of business discontinuation should be prepared. During the filing of the de-registration application with the competent regulator in Indonesia, these conclusive accounts must also be submitted.