Authorisation Letter On Behalf Of Company Template for Indonesia

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What is a Authorisation Letter On Behalf Of Company?

An Authorization Letter On Behalf Of Company is a crucial document in Indonesian business operations that enables companies to delegate specific powers to designated representatives. This document type is essential when a company needs to authorize someone to conduct business transactions, sign documents, represent the company in meetings, or handle specific administrative matters. Under Indonesian law, particularly Law No. 40 of 2007 on Limited Liability Companies, such authorization must be properly documented and executed with appropriate corporate formalities. The letter should clearly specify the scope of authority, duration, and any limitations to protect both the company's interests and ensure legal compliance. It's commonly used for both domestic and international business transactions, requiring proper stamp duty and potentially notarization or apostille certification depending on its intended use.

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Swetha Meenal

Legal Engineer, GenieAI

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A lawyer, legal researcher and legal tech founder, Swetha has built AI products deployed inside Tier 1 firms and enterprises. She ensures GenieAI's alignment with the latest regulation and executes testing on the legal robustness of Genie output.

Reviewed by

Imad Mohammed Nazar

Legal Engineer, GenieAI

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A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

Indonesia

Publisher

GenieAI

Sector

Business

Cost

Free to use

Last updated

About the Authorisation Letter On Behalf Of Company

When your Indonesian company needs to delegate authority to representatives for business transactions, an Authorisation Letter On Behalf Of Company becomes essential. This legal document formally grants specific powers to designated individuals, allowing them to act on your company's behalf in defined circumstances while ensuring compliance with Indonesian corporate law.

When do you need this document?

You'll need this authorization when your company directors cannot personally handle specific business matters. Common situations include authorizing employees to sign contracts with suppliers, empowering representatives to attend regulatory meetings, delegating authority for bank transactions, or enabling staff to handle licensing applications. International companies operating in Indonesia frequently use these letters to authorize local representatives for government dealings. The document is also crucial when company directors are traveling or unavailable for time-sensitive business operations.

Key legal considerations

Your authorization letter must clearly define the scope of delegated authority to prevent unauthorized actions that could bind your company beyond intended limits. Include specific time limitations and geographical restrictions where applicable. The letter should identify both the authorizing company and authorized representative with complete details, including registration numbers and identification documents. Consider including indemnification clauses to protect your company from potential misuse of authority. Ensure the authorization is signed by properly authorized company officials as defined in your company's articles of association. Remember that certain actions may require board resolutions or shareholder approval before delegation is legally valid.

Legal requirements in Indonesia

Under Law No. 40 of 2007 on Limited Liability Companies, your authorization letter must comply with specific corporate governance requirements. The document requires proper stamp duty according to Law No. 13 of 1985, with current rates depending on the document's value and purpose. For certain transactions, particularly those involving government agencies or financial institutions, notarization under Law No. 30 of 2004 on Notary Position may be mandatory. The Civil Code provisions on power of attorney (surat kuasa) establish the fundamental legal framework governing such delegations. Your company letterhead must include the complete legal name, address, and registration number. International use may require apostille certification through the Indonesian Ministry of Law and Human Rights.

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