Indonesia is a growing market which offers many opportunities and is filled with great potential of investment from global investors all around the world. Thanks to its needs in infrastructure, the width of its internal market, its large population and most of all, its abundance of natural resources, it had attracted attention of many foreign investors globally. However, to be able to invest in Indonesia, you are required to acquire a business registration number in Indonesia.
In this Article, you will be provided with the procedures to obtain a business registration number in Indonesia and its purpose.
Purpose of Obtaining the Business Registration Number
There are a few reasons as to why obtaining a business registration number is crucial in setting up a company in Indonesia. The reasons are as follows:
Any limited liability company, albeit Local Company, PT or Foreign Owned Company, PT PMA can be frozen and dissolved by the government if an inspection was to take place if the company do not possess a business registration number. The communities would be able to report to the government on companies that do not have permits because those companies would be considered illegal and irresponsible;
If the company obtained a business registration number, it simple mean that the company has been recognized by the government and the business will be protected by applicable law and regulations; and
Companies that have a business registration number in Indonesia will be listed in the list of state-recognized companies in Indonesia. With this recognition, the public will believe in all the performance and activities claimed by the company.
Procedures to obtain a Business Registration Number in Indonesia
The business registration number in Indonesia is a certificate of authorization that is used by entrepreneurs for licensing purposes to carry out their respective business activities. Thus, as an entrepreneur who wishes to acquire a business registration number in Indonesia, he/she would be required to follow the procedures below:
Acquire the approval on the name of your company from the Minister of Justice and Human Rights of the Republic of Indonesia. This would take 4 working days to receive an approval.
Obtain the approval from Indonesia Investment Coordinating Board (BPKM), this may take 12 working days or more to acquire.
Provide the preparation of the Articles of Association (Akta) which was legalized by the notary. This preparation may take approximately 4 working days.
You would need to have the certificate of domicile from the local government office. This certificate may take at least 3 working days.
You also must acquire the tax identification number or NPWP for your company in Indonesia. To obtain this tax i