As the largest city and capital of Central Java, Semarang is now regarded as one of the best places to start a trading company. 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 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 documents 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
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
Required Business Licenses for Trading Company in Indonesia
You will need to have a trading license, 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.
How Cekindo can Assist
Cekindo 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 Cekindo to set up your trading company in Indonesia. Fill in the form below.
