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Company Registration Update: Annual License Renewal is No Longer Needed

Posted 7.03. 2017 by Cekindo / Last update on 19.05. 2017

Company Registration Update: Annual License Renewal is No Longer Needed Review by Michal Wasserbauer on 7. 3. 2017 Company Registration in Indonesia, Market Research in Indonesia, Work Permit in Indonesia, Product Registration in Indonesia, Local Partner Selection in Indonesia, Trade Mission in Indonesia, Company Formation in Indonesia, Company Establishment in Indonesia, Company Set Up in Indonesia, Payroll Outsourcing in Indonesia, Tax Reporting in Indonesia, Medical Product Registration in Indonesia, Medical Device Registration in Indonesia, Cosmetic Registration in Indonesia, Food Supplement Registration in Indonesia.
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Indonesian current government is so consistent in promoting Indonesia as a conducive and reliable country for foreign investment.

Many efforts have been done by the government, including issuing policies that will make foreign investment more feasible. The most recent ones are the Regulation Number 07/M-DAG/PER/2/2017 by the Ministry of Trade Republic Indonesia on Trading Business License (SIUP), which is the Third Amendment of the Trade Ministry Regulation Number 37/M-DAG/PER/9/2007 as well as Regulation Number 08/M-DAG/PER/2/2017 on Company Registration Certificate, which is the Second Amendment of the Regulation Number 37/M-DAG/PER/9/2007. Those regulations are valid from February 22nd, 2017 to all trading companies that have already owned SIUP and TDP (read: Company Registration in Indonesia).

 

The Overview of the New Regulations

In this newest regulation, trading companies are no needto renew their Trading Business License (SIUP), which in the past need to renew every year. This regulation is applied only if the companies remain active in the business. In addition, the amendment also said that the procedure of obtaining Company Registration Certificate (TDP) will be simplified and the administration fee to renew the TDP will be eliminated (read also: How to Get Domicile Letter + Free Sample).

It means that trading companies need to renew their TDP after 5 years with submitting a letter of notice. This procedure can be done manually or online before the TDP is expired. The companies can submit a hardcopy or softcopy of the documents needed and fill in the form attached in the regulation. The companies will receive a new TDP. If within 3 working days, PTSP does not issue a new TDP, then the current TDP shall automatically consider as renew and continue to apply

Another important point in the new amendments is that the registration of a new SIUP, the replacement of the lost or damaged SIUP, and the changing of items in the SIUP are not subject to retributions like in the old regulation Number 36 Year 2017.

More updated regulations:

The Implication of the New Regulations

The Trading Minister said in the press release made by the Ministry of Trading Republic Indonesia that the government wants to improve its services so that all business practitioners can find it easier to start and run business in Indonesia. It is expected that there will be more and more companies invest in Indonesia and enjoying easier bureaucracies that often complicate the foreign investors in the past. Not only it can boost foreign investment in Indonesia, but the new regulations will come as the government goodwill to foster healthier and more transparent business climates in Indonesia.

Read also:

How Cekindo Can Help

Because one of our commitments is to help our clients to find the best solution for their business in Indonesia, we are willing to assist foreign entities and companies to deal with company registration process legally based on the laws and regulations in this country. We also give our comprehensive, practical, and advantageous advice to any foreign companies to do business in Indonesia easily and smoothly. Our experiences in many business fields will give you countless applicable lesson learnt that will be beneficial for your companies.

Feel free to contact us for further supports.

 

References:

http://www.kemendag.go.id/files/pdf/2017/02/23/permendag-baru-ditandatangani-siup-tak-perlu-diperpanjang-id0-1487820653.pdf

http://www.kemendag.go.id/files/regulasi/2017/02/17/07m-dagper22017-id-1487744862.pdf

http://www.kemendag.go.id/files/regulasi/2017/02/17/08m-dagper22017-id-1487745049.pdf

http://www.hukumonline.com/berita/baca/lt58ae9dcb52098/permendag-baru-terbit–siup-tak-perlu-diperpanjang

http://www.cnnindonesia.com/ekonomi/20170217034141-92-194140/dunia-usaha-sambut-wacana-penghapusan-siup-dan-tdp/

 



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