If you are acquainted with the regional rules governing business registration, registering a firm in Indonesia can be less difficult.
Step-by-step guide to Indonesian business registration
The following are the steps taken:
Determine a company name
A legitimate company name in Indonesia must include a minimum of three distinct words, according Indonesian law. You may use other names for your products or brands, this official name is only used for legal purposes.
Articles of association in draft
The articles of organization for your company must be drafted by a registered notary after you’ve decided on a name for it. The following information is contained in these articles of association:
- Name and address of your business.
- Details of the capital amount.
- Goals and business operations of your organization.
- Quantity and value of company shares.
- Places and procedures for shareholder meetings.
- Appointment, titles, membership, and expulsion procedures for the BOD and BOC.
- Methods for distributing firm profits and dividends utilize and disseminate.
Submit the establishment document
The Deed of Establishment shall be executed by you and your shareholders before a notary public. If one or more of the shareholders is unable to act, a power of attorney is also necessary. The articles of association will then be submitted by the notary. The submission must be submitted to and approved by the Indonesian Ministry of Justice and Human Rights.
When the Deed of Establishment is issued, the Ministry will have legally established your company as a legal entity in Indonesia. The Deed of Establishment and Articles of Association for your firm are the two essential documents you must submit in order to apply for a business registration number and other necessary licenses.
Get a company tax number
The application for a company tax number at your local office in Indonesia comes after the Deed of Establishment is issued. You’ll receive a letter with your company’s tax identification number at that address. After receiving your firm tax ID, you will then receive a domicile letter with the exception of Jakarta. With the new regulations in Jakarta, domicile letters are no longer required for new enterprises.
Get your business registered with a number
With the newly established Online Single Submission (OSS) system in Indonesia, the process is made simple and you can receive your business registration number and other essential documents at the same time.
The documents you receive from OSS are as follows:
- Company registration number.
- Customs identity number and import permit.
- Automatic enrollment in the Social Security and Health Systems.
Involve post-registration formalities
You can launch business operations in Indonesia once your registration has been approved. The following actions will be possible for you to do on behalf of your business:
- Establishing a bank account for your business.
- Invest in assets and real estate.
- Hire personnel Participate in a tender Obtain visas for any foreign workers.
- Obtain operating licenses for businesses (if needed).
- In the event that you already have a permanent employee, obtain business regulation (“PP”).
- Your quarterly investment report, known as LKPM (Laporan Kegiatan Penanaman Modal), should be sent to BKPM.
You must use a Notary public to make the update any time you want to change the firm information that was specified in your Deed of Establishment. At the annual meeting of shareholders, each stakeholder of the corporation must sign the amendment form. The notary will then process the amendment deed.
Indonesian company registration number
Any business seeking to operate in Indonesia must obtain a business or company registration number. By virtue of Article 1 BKPM Reg 1/2020, this is a mandated legal duty that pertains to all businesses. It is recognized as a firm registration certificate or Tanda Daftar Perusahaan and is known as Nomor Induk Berusaha (NIB). Indonesian businesses were previously required to get a business register number, an import permit, and a customs identity number. The application procedure was protracted, onerous, and expensive, and they were different documents.
How to get an Indonesian company registration number
After completing the first two steps of the incorporation process, you should apply for an Indonesian business registration number. Consequently, NIB comes after applying for a business tax ID and receiving a deed of establishment. The OSS system, which manages Indonesian company registrations online. The NIB, a distinct 13-digit number, serves as your company’s official identification and business license. The first step is to create an OSS account by completing the online registration form. This calls for the submission of data such as the NIK number of the Person in Charge of your business, etc.
