Document background
A Share Subscription Agreement is essential for Indonesian companies seeking to raise capital through the issuance of new shares. This document is commonly used in various corporate scenarios, including startup funding rounds, corporate expansions, or strategic investments. The agreement must align with Indonesian regulatory requirements, particularly Law No. 40 of 2007 on Limited Liability Companies and, for foreign investments, the relevant BKPM regulations. It includes detailed provisions on share valuation, payment mechanisms, warranties, and completion procedures. The document serves as both a legal requirement and a practical framework for implementing share subscriptions while protecting the interests of all parties involved. It's particularly important in the Indonesian context due to specific local requirements for corporate governance, foreign investment restrictions, and regulatory compliance.
