Home Blog Business Update: Domicile Letter No Longer Required for Business Establishment in Jakarta Business Licenses | Business Setup | Jakarta | Legal Updates Business Update: Domicile Letter No Longer Required for Business Establishment in Jakarta InCorp Editorial Team 11 May 2019 3 minutes reading time Table of Contents Company and Business Domicile Letters Shutdown Application of Company and Business Domicile Letters Advantage of the Company and Business Domicile Letters Shutdown Business Licensing Process Has Been Simplified as Well How Cekindo Can Help Both local and foreign entrepreneurs looking to start businesses and establishing companies in Jakarta may feel relieved as the procedure of company registration in Jakarta has been made easier than ever before, thanks to the city’s government. This article elaborates in more details regarding the business update related to company registration in Jakarta. Company and Business Domicile Letters Shutdown As the commitment of the government of Jakarta to create a much more favourable business convenience in Jakarta, non-licensing services of Company Domicile (Surat Keterangan Domisili Perusahaan – SKDP) and Business Domicile Letter (Surat Keterangan Domisili Usaha – SKDU) are no longer required. The simplification of business establishment procedure in Jakarta has been effective since May 2, 2019. The initiative has also been officially announced in Jakarta’s One-Stop Service Center (Pelayanan Satu Pintu Terpadu – PTSP) Announcement Number 27 Year 2019. Check more updates: OSS System Services Begin to Operate at BKPM Application of Company and Business Domicile Letters Both SKDP and SKDU are letters that state the domicile of a person or a business entity. Such domicile letter was required to manage various other legal documents such as SIUP, Company Registration, NPWP (Tax Identification ID), and to manage other trading businesses. Since its first launch, SKDP was a non-licensing service at Jakarta’s One-Stop Service Center (PTSP). This requirement was seen as a matter that hindered the east of doing business in Jakarta in that the licensing process was deemed complicated. Advantage of the Company and Business Domicile Letters Shutdown In exchange for the Company Domicile Letter (SKDP) and Business Domicile Letter (SKDU), business people can now use business licensing documents issued by the city’s Investment Coordinating Board and One-Stop Service Center and/or from other government institutions stipulated in the legislation. It is certainly good news for entrepreneurs because the current establishment package looks simpler, as detailed below: Deed of Establishment by Notary; Approval by the Ministry of Law and Human Rights; NIB and Business License; Location Permit (replacing Domicile Letter); NPWP (Tax Identification). With the shutdown of the SKDP/SKDU services as mentioned above, it is expected that the business process in Jakarta will be much simpler. Business Licensing Process Has Been Simplified as Well It is worth knowing that business licensing process has been simplified as well by the government of Indonesia. To speed up the business licensing procedure, Online Single Submission (OSS) system under online business licensing services has been implemented. Current business owners and investors who are looking to expand their businesses to Indonesia are required to apply for Business Entity Number (Nomor Induk Berusaha – NIB) and other necessary business licenses via the OSS. How Cekindo Can Help Get in touch with us today by filling in the form below to know more about what business licenses you need and the process of setting up a company in Jakarta, or other parts of Indonesia, in details. Alternatively, you can visit us in our offices in Jakarta, Bali and Semarang to discuss business incorporation anywhere in Indonesia. Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). Frequently Asked Questions Will the government check the minimum paid-up capital for doing business in Indonesia? The government will check the minimum paid-up capital, IDR 10,000,000,000. Fulfilling this requirement is a must. What requirements are needed if my Indonesian company registers the product? Register the product with BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). The type of testing and document requirements depend on the type of product you want to register. Also, the time frame for registration could vary between 3 to 15 months. What responsibilities does a PMA company have in terms of non-tax compliance? In Indonesia, a PMA company is typically required to submit various reports to relevant authorities, such as: Annual financial report Investment realisation report Manpower and employee welfare report Expatriate utilisation report Company loan repot Foreign exchange and prudential principles report However, depending on the business activities and classification relevant authority may require additional reports from a PMA company. Can investors own shares with preferential rights? Under Indonesian Company Law, shareholders can hold shares with various preferential rights, such as voting rights, nomination rights for board members, priority dividend or liquidation proceeds, and options for conversion or withdrawal after a set period. Get in touch with us. Lead Form Contact Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Business Licenses How to Liquidate a Company in Indonesia Read more Starting a PT PMA Indonesia: Who Can Hold Structural Roles? Read more The Investment Opportunity for an Electric Vehicle Ecosystem in Indonesia Read more