Trading Company Indonesia: Why Open It in Semarang and How

Trading Company Indonesia: Why Open It in Semarang and How

  • InCorp Editorial Team
  • 12 September 2023
  • 4 minutes reading time

As the largest city and capital of Central Java, Semarang is now regarded as one of the best places to start a trading company in Indonesia. According to the central government, they aim to boost Central Java’s Regional Product per Capita (PDRB) to 7% by 2023 with a total investment of IDR 774 trillion.

Company Types for Trading Company in Indonesia

You need to know the available types of trading companies and its trading regulaitons in Indonesia before you can establish one. There are four major types: a limited liability company, a cooperative company, a limited partnership or firm, and an individual company.

Each type of legal entity needs a different set of trading documentations in Indonesia for its registration:

1. Limited Liability Company

  • The decree regarding the legal status of the company
  • Applicant’s statement about the business location
  • Tax registration number NPWP
  • Domicile letter
  • Two photos of director or person-in-charge
  • A copy of the director’s or person-in-charge’s identity card

2. Limited Partnership (CV) or Firm

  • Decree regarding the legal status of the company
  • Domicile letter
  • Tax registration number NPWP
  • A copy of the deed of establishment
  • Two photos of the business owner, manager, or person-in-charge
  • A copy of the owner’s, manager’s, or person-in-charge’s identity card

Read more: Business License in Indonesia: Risk-Based Classification Approach

3. Cooperative Company

  • The decree regarding the legal status of the company
  • Applicant’s statement about the business location
  • Tax registration number NPWP
  • Domicile letter
  • Two photos of director or person-in-charge
  • A copy of the director’s or person-in-charge’s identity card

4. Individual Company

  • Applicant’s statement about the business location
  • A copy of the owner’s, or person-in-charge’s identity card
  • Two photos of the business owner or person-in-charge

Read more: Permanent Business License: What You Need to Know about It

Required Business Licenses for Trading Company in Indonesia

You will need to have a trading license in Indonesia, or SIUP, before you can establish a trading company in Indonesia. There are four kinds of trading companies in Indonesia and each type of them requires a different SIUP.

1. Micro SIUP (SIUP Mikro)

This license is compulsory for micro-businesses with a net worth of no more than US$3,560 (IDR 50 million). This amount doesn’t include the company’s buildings and lands. This type of company has to be a sole proprietorship or partnership and the owners or its family and relatives are in charge of managing all its business activities.

2. Small SIUP (SIUP Kecil)

A small SIUP license is designed for small businesses in Indonesia. These small businesses have a net worth of more than US$3,560 (IDR 50 million) but less than US$35,606 (IDR 500 million) and this amount does not include buildings and lands as well.

3. Medium SIUP (SIUP Menengah)

The license for medium businesses is known as medium SIUP or SIUP Menengah. Companies with this license shall have a net worth of more than US$35,606 (IDR 500 million) but less than US$712,125 (IDR 10 billion) with the exclusion of lands and buildings.

4. Large SIUP (SIUP Besar)

As for large trading companies, they need a Large SIUP or SIUP Besar. These large companies must have a net worth of more than US$712,125 (IDR 10 billion) with the exclusion of lands and buildings.

Read more: 45 Additional Business Fields No Longer Have to Apply for Additional License

Start Your Trading Company in Indonesia with InCorp

InCorp can provide you with a precise and clear picture of how to start a trading company in Indonesia. Our team of experts is skilled in offering a complete package of business solutions regarding your company formation in Semarang and across the country.

Through our wide network and reputation, we assist investors in opening corporate bank accounts and applying for required licenses, as well as step-by-step guidance to tackle the immigration process for work permits and visas.

Our clients range from foreign investors, business owners, individual venture capitalists, and aspiring start-up entrepreneurs who need assistance in navigating specific regulatory processes and governmental policies.
Our wealth of experience enables us to simplify the complex procedure and make the process much easier for you.

Contact InCorp to set up your trading company in Indonesia. Fill in the form below for more information.

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

    Yes, PMA companies in Indonesia can hire expatriates, but certain positions are restricted by the Ministry of Manpower. Expatriates need both working and stay permits, and employers must employ Indonesian counterparts for each expatriate employee, typically at a ratio of at least one Indonesian counterpart per expatriate.

    To provide you with accurate pricing information for our product registration services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, don’t hesitate to contact our consultants.

    The investment requirement for PMA companies in Indonesia varies based on their classification under the Indonesia Industrial Standard Classification (KBLI). Generally, a minimum investment of IDR 10,000,000,000 (ten billion Indonesian Rupiah), excluding investment in land and buildings, is needed to conduct one business activity in one location.

    The procedures for (voluntarily) liquidation typically involve the following steps:

    • Conduct a general shareholder meeting to approve the liquidation and the liquidator’s nomination
    • Notify the Ministry of Law and Human Rights as well as the creditors of the liquidation and the distribution plan for the assets by newspaper notice
    • All business licenses and tax numbers should be canceled or revoked; the tax office will conduct a tax audit to revoke the tax number
    • Make sure creditors are paid and that any liquidation funds are distributed to shareholders (if any)
    • Conduct a general meeting of shareholders to approve the liquidator’s discharge and acquittal
    • Notify the Ministry of Law and Human Rights of the liquidation’s outcome. After receiving the notification, the Ministry of Law and Human Rights will deregister the company’s status as a legal entity and remove its name from the Company Registry
    • Release the liquidation’s outcome in a newspaper

    Completing the liquidation process can take around two years.

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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.

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