LDD is carried out with various objectives, including:

  1. Obtaining legal status for audited documents.
  2. Obtaining information on legal aspects within a company, from assets to certain legal relationships within a company.
  3. Providing insight to interested parties, such as investors in making transaction decisions.
  4. Providing legal views on a policy.
  5. Examining the legality of a company.
  6. Examining the level of compliance (compliance) of a company.
  7. Mitigating potential legal risks.
  8. Providing legal views or legal certainty in transactions carried out by the company.

There are two types of LDD, namely full due diligence and limited due diligence.

  • Full Due Diligence

Full Due Diligence is an audit process of all legal aspects within the company, starting from the articles of association, composition of shareholders, directors, and commissioners, capital and share structure, company assets, permits and approvals, agreements with other parties, insurance, labor, to the existence of legal cases.

This type of LDD is usually used by companies that want to decide to merge, acquire, or consolidate.

  • Limited Due Diligence

Limited Due Diligence is an audit conducted by an individual. In this case, the object to be audited is not a company, but an individual. This type of LDD is generally applied in matters related to licenses, loans, and the acquisition of assets or certain transactions.