Understanding Different Types of Business Licenses in Indonesia

The laws in Indonesia make it mandatory for a whole range of businesses in the country to acquire a business license before they can be legally established and operated. Some businesses may also obtain a more specific license such as a commercial license to sell alcohol.

Follow Cekindo’s guide to understand the different types of business licenses in Indonesia.

Different Types of Business Licenses in Indonesia

There are primary and non-primary business licenses in Indonesia. Primary licenses are the most widely used business licenses.

Companies in Indonesia often use one of the three primary licenses including general business license, industrial business license, and construction business license.

Non-primary licenses include commercial and operational licenses and permits. These licenses are required before businesses start their operations based on their business activities.

Licenses that can be Applied via OSS

Three types of licenses that can be applied through OSS are introduced by the Indonesian government to replace and consolidate the previous licenses. This implementation is to integrate and simplify the license-issuing procedures.

• Business identification number (NIB)
• Business licenses
• Operational and commercial licenses

A Step-by-Step Guide to Securing Business Licenses in Indonesia via OSS

The OSS licensing procedure system is relatively straight-forward. Business owners need to first complete their registration with the OSS; then proceed to acquire the Business Identification Number (NIB).

The business license will then be processed upon the acquisition of NIB, and the applicant will afterward receive the business license.

1. Access the OSS System

You can start the OSS registration by preparing the following for application submission:

• Applicant’s name
• Identity card number or passport number
• Registration number of the deed of establishment for private companies
• Establishment’s legal basis for public companies

2. Apply and Obtain an NIB

Then, the applicant (as an individual or non-individual) shall proceed to provide the following information to get the NIB:

Individuals

• Applicant’s name
• Identity card number or passport number
• Business line or category
• Business address
• Investment location
• Planned investment value
• Business contact number
• Plan of manpower utilisation
• Taxpayer identification number
• Plan of fiscal and customs application

Non-individuals

• Investment type
• Business registration number or name of the deed of establishment
• Business line
• Investment location
• Planned investment value
• Plan of manpower utilisation
• Entity’s contact number
• Plan of fiscal and customs application
• Taxpayer identification number
• Business or person-in-charge’s ID number

Once all required documents have been submitted and proved valid and complete, it takes approximately 14 business days to process the business license.

Licenses that Cannot be Secured via OSS

BKPM is still in charge of licensing processes of several sectors in Indonesia that cannot be done through OSS.

The sectors with licenses that cannot be secured through OSS include the following:

• Electricity sector
• Mineral and coal sector
• Oil and gas sector
• Public housing and public work sector
• Custom and taxation
• Capital investment

How Cekindo can Assist

Indonesia offers excellent options for running a business and has emerged as one of the fastest-growing economies in the world.

If you are planning to expand your business in the country, then you must be familiar with the process of acquiring a business license in Indonesia. A business license is mandatory to complete your company registration in Indonesia.

Cekindo can provide you with a customised and comprehensive business registration service that fits your budget. We also help you explore the best possibilities of registering a company in Indonesia.

Having years of experience in providing company registration and business consultancy in Indonesia, Cekindo has an impeccable track record with outstanding end-to-end solutions for global businesses.

Talk to us now. Fill in the form below.