Indonesia is a rapidly developing market with several opportunities and significant investment potential from international companies. It had caught the attention of many international investors worldwide due to its infrastructure needs, the breadth of its domestic market, its big population, and, most importantly, its abundance of natural resources.
To set up a company in Indonesia, you must first obtain an Indonesian business registration number.
Why should I obtain a Business Registration Number?
A company’s registration number is a unique number that is assigned by the authorities to register for corporate tax, filing and submitting of tax returns, and more.
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:
Benefits of obtaining a Business Registration Number in Indonesia
There are several benefits that companies with a business registration number will get. These benefits are:
Do note however that obtaining a registration number is just part of the company registration procedure in Indonesia.
Procedures to obtain a Business Registration Number in Indonesia
The business registration number in Indonesia is a certificate of authorisation 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:
|1||Approval of company name at the Ministry of Law and Human Rights||4|
|2||Approval from Indonesia Investment Coordinating Board (BPKM)||12|
|3||Preparation of Article of Association by Notary (Akta)||4|
|4||Obtain Domicile Letter at the local government office||3|
|5||Obtain Tax Identification Number (NPWP)||3|
|6||Open an account in a bank on behalf of your company||1|
|7||Obtain the deed of establishment for your company||20|
|8||Obtain company registration certificate from the local government||20|
What is next after Obtaining a Business Registration Number in Indonesia?
After your company is established, you can start running your business in Indonesia and conduct activities such as:
A Single Entry 60-Days Business visa is given to a citizen of a foreign country who would like to visit Indonesia for business purposes. This visa is valid (must be used) within 90 (ninety) days from the date of issuance, the 60-days stay permit starts from the date the traveler enters Indonesia.
The incorporation process usually takes 1-2 months, but this is an estimation and the time required is on a case-by-case basis.
Incorporating your company gives you the authority to manage your company and other jurisdictions supported by Indonesia.
Indonesia company registration number is a unique number assigned to every business that is legally incorporated in the country. Furthermore, having a company registration number means that your business is recognized and protected under Indonesian law.