How to Get a Business License in Indonesia
Review by
Michal Wasserbauer on
2. 4. 2014
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Licensing issues were established by Presidential Instruction No. 5 Year 1984 date of 11 April 1984 on Guidelines for Implementation and Control Permissions on the line of business. The rules ensure that any business can apply for a license smoothly, legally and in a structured manner.
A business license is required for any business activity by small and medium enterprises as well as large-scale businesses, including foreign investment companies. Having a business license identifies your business and its operation as legitimate and permitted by the appropriate authorities. Business Licenses are issued by the Investment Coordinating Board (BKPM) or Regional Investment Coordinating Board (BKPMD) to a company that was established within the framework of a foreign investment company (PMA). A business License is issued as an operating permit to conduct commercial business activities in the trade of good and services.
Classification of business license for PMA:
- A company engaged in general trading, goods or other services should have a business license.
- A company engaged in the manufacturing industry outside of the oil, gas and geothermal sectors should have an industrial business license.
Business license requirements:
A permanent business license will be given to a PMA if it meets the following requirements:
- Has been in production
- Meets the time limit given (3 years)
Application Procedures:
- A PMA can apply for a permanent license to the Head of BKPM or BKPMD (BKPM region/province). It depends upon the foreign investment license, whether it will issued by the BKPM or the BKPMD. It also depends upon the domicile of the company.
- The applicant completes and signs the application form for a business license at BKPM office or the BKPMD and attaches the required documents.
- BKPM or BKPMD officers will check all the files and the eligibility and completeness of the application, and issue a permanent license certificate.
Requirements:
- Copy of permit approval for investments
- Copy of Deed of Establishment and its amendments.
- Copy of company domicile, NPWP and TDP.
- Copy of contract/rental of business premises and certificate from the owner of the building.
- Copy of ID card and passport or KITAS for foreigners.
- Nuisance Act Permit and Location Permit (SITU)
- List of office equipment and Industrial Equipment
- Company organizational structure
Based on new regulation form the beginning of 2015 all new foreign companies and foreign companies which till now still don´t have business license needs to have financial audit before they can apply for a permanent business license and also other connected licenses (import license, etc.) which are critical for a lot of companies. This new regulation wants to ensure that all foreign investors realized their an investment plan and not only submitted an investment plan to Investment Coordinating Board (BKPM) just only on paper, which often happened in the past.
Time processing and validity:
- The process for a permanent business license takes 14 working days.
- A permanent business license for a PMA is valid for 30 years.
Feel free to contact us for a free quotation on navigating the visa and work permit process in Indonesia.
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Is there a place where I can verify if a business in Indonesia that is on the internet has a business license. I am trying to verify if foxoutboardstore. Com is a legitimate business. I have bought from other businesses from Indonesia in the past, but I would like to confirm if this business is legitimate before I contact them. Any help you can give me would be greatly appreciated.
God bless.
dear sir,i have my own company in uae ,we do trading business in smoking accessories,charcoal,and furniture.
we are planing to get export trading licence in Indonesia.
we want to know what is the first steps in order to start and submit the requirements.
Dear Rachid,
thank you very much for your interest. Our consultants will contact you still today and provide you detail overview about trading licence include quotation.
Thank you
Dear Scott,
thank you for your comments and sorry for my late respond. Our consultants will contact you to investigate more about your business to provide you adequate advice.
Thank you
HI, I’d like to know how to set up a local company, What are the document needed it?
I can’t find it on your website.
Thanks
Hi, Can we still get a permanent Business licence, if the audit report is qualified. The qualification being, for not recording the post benefit employment obligations.
Dear Mr./Mrs. Rubab,
Greetings from Cekindo.
My name is Mery Enjelica, and I am ready to help you for any inquiries related with business set up and its licenses, business process outsourcing and local representation. I am contacting you based on the comment that you submitted to our website.
Following your inquiry, we noticed that you would like to apply for Permanent Business License (IUT). In this case, it is confirmed that we can assist you to obtain such license. However, we need clarify some information regarding your company, such as the business activity of company, the progress of investment plan, etc.
In order to answer your question and settle the issue, we are keen to have a phone or skype call for detail discussion. Therefore, kindly advise your phone number and preferable schedule to be contacted.
Should you have any other inquiries, please feel free to write us in info@cekindo.com
Thank you and looking forward to hear from you.
Hello,
I have a pma business license IZIN PRINSIP already existing, i want to apply for a permanent business license,
Kindly send us your quotation,
Thanks,
Vikas Jain
Thank you for your comments.
Should you need further information regarding our services, do not hesitate to contact us at +6221 806 60999 or send us email through info@cekindo.com
please help me to get a permit for my micro business in Jakarta
please help me