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

    A nominee arrangement is an arrangement that uses another person’s name as a subject. In Indonesia, it is prohibited. This restriction aims to prevent situations where a company is owned by one party but beneficially owned by another. According to the law, any nominee agreement between a local party and a foreign investor is deemed null and void.

    In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types:

    • Business Identification Number (NIB)
    • Low-risk businesses needing only an NIB

    • Standard Certification
    • Standard Certification is necessary for medium-low and medium-high-risk businesses
    • Licenses/Permits

    High-risk businesses require licenses/permits
    Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM).

    Indonesian Company Law establishes a two-tier governance system with Directors managing day-to-day operations and representing the company, while the Board of Commissioners supervises and advises them. The articles of association may empower board of Commissioners to provide consent or assistance to Directors for specific legal acts.

    The minimum number of shareholders to incorporate a PT is two

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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.