Obtain a Business License in Indonesia

A business license in Indonesia is required for all companies registered in this country to lawfully engage in their respective activities. Our team specializing in company formation in Indonesia can help investors apply for a business license or a trade license in Indonesia.

What is the business license in Indonesia?

When applying for a business license in Indonesia, a distinction should be made between the general business license (issued upon incorporation, as an Indonesian registration certificate) and business licenses issued by authorities that regulate selected business fields.

Entrepreneurs who open a company in Indonesia are required to observe industry-specific licensing requirements, such as those for:

• agriculture and forestry;
• communication;
• tourism;
• food manufacturing and selling;
• educational services.

What is the trade license in Indonesia?

A trade license in Indonesia is also part of this category of licenses issued by authorities. Under the risk-based OSS system, the trading licence (formerly SIUP) is the business identification number (NIB) with the relevant business classification (KBLI) codes.

How do I apply for the trade license in Indonesia?

This is an automatic process, linked to company formation in Indonesia. The broad steps are outlined below by our team:

1. Open the company;
2. Register the business;
3. Apply for the business identification number using the company’s details;
4. Apply for the trade license according to the correct business classification code attributed to the activities your company will effectively perform in Indonesia.

Must I renew my trade license in Indonesia?

No, once assigned to your business, the trade license corresponding to the business classification codes for which your company is registered does not expire.

Because the trade license is linked to the activities you engage in, it is only relevant to apply for a new license if you change the object(s) of activity.

Do I require special permits in addition to a trade or business license in Indonesia?

Yes, depending on your activities. Examples can include:

• -import/export licenses;
• -Halal certificates;
• -Environmental permits (specific requirements apply), and others.

Special permits have different validity periods. One should be informed thereof to ensure continued compliance for their company in Indonesia.

Are there special conditions for foreign investors in Indonesia in terms of business license applications?

Individual foreign investors can set up a foreign-owned company and obtain the trade license in Indonesia by following the general company registration steps. For some other business licenses in specific business fields, it may be required to appoint a local agent.

A foreign company doing business in Indonesia cannot directly apply to the local authorities. In these selected cases, a local representative is appointed and handles the process.

How can you help me apply for a business license in Indonesia?

If your company operates in a business sector that is subject to additional licensing and control, our local company formation experts can:

• -Analyse your commercial activities to determine the requirements for a trade and business license in Indonesia;
• -Help you prepare the mandatory documentation. This includes company documents such as the Articles of Association or the Business Registration Certificate, but also others that may refer to the appointed agent;
• -Submit the application: handle the steps indicated by the authority concerned with licensing. We will assist with the final document verification and submission to ensure that everything is in order and your application is on track to allow for a proper approval of the business license;
• -Stay informed and compliant: as the legal requirements change or may provide for additional conditions for licensed entities, working closely with a team of experienced local agents can be useful for maintaining full legal compliance with industry-specific policy changes.

Contact our team for more details about the business license in Indonesia, as well as other requirements and regulations for local and foreign companies.