Indonesia Business Registration Number

Jun 205 mins

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:

  • Any limited liability company, albeit Local PT company or Foreign Owned Company (PT PMA), can be frozen and dissolved by the government if an inspection was to take place and 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 simply meant that the company has been recognised by the government and the business will be protected by applicable law and regulations

  • Companies that have a business registration number in Indonesia will be listed in the list of state-recognised companies in Indonesia. With this recognition, the public will believe in all the performance and activities claimed by the company.

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:

  • You will be able to apply for a visa for any foreign employees that you hire under your company’s name
  • You will be able to obtain any business visa sponsors for your clients from your company
  • You can also join and take participate in all business tenders in Indonesia by entering under your company’s name

Do note however that obtaining a registration number is just part of the company registration procedure in Indonesia.

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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:

  • 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 identification number, it may take approximately 3 working days.
  • After that, you need to open an account in a bank on behalf of your company. This will normally take a day to open the bank account.
  • You need to obtain the deed of establishment for your company from the Department of Law and Human Rights of the Republic of Indonesia for about 20 working days.
  • You should obtain the company registration certificate from the local government. To get this certificate, it may take approximately 20 working days.

 

No. Description

Estimated Duration

(Working Days)

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?

After your company is established, you can start running your business in Indonesia and conduct activities such as:

  • Open an Indonesia corporate bank account 

    It is possible to open an Indonesia corporate bank account without being physically present in Indonesia.

  • Rent or buy property and other assets on behalf of your company 

    After obtaining the business registration number for your company in Indonesia, you would be required to choose a location to set up your physical office in Indonesia. Do note however that you would be required to refer to the Negative Investment List for your business location as some business activities are prohibited in certain areas.

  • Start other preparations for your operation, such as but not limited to hiring staff, preparing office renovations, etc. 

    You should have already planned out how your operations are going to be taken place in your company. By planning out and start your operations once your company is set up would save you lots of money and time.

  • Proceed to obtain work and stay permits for foreign employees in your company

    You would be required to figure out as to how many foreign employees you will be hiring in your company. This is crucial as you would be required to comply with regulations with regard to obtaining the work permit for your foreign workers.

All things considered, if you’re a foreign entrepreneur serious about starting your business in Indonesia, having a local service provider heavily involved and supporting your operations would be a definite advantage. Reach out to us for a free consultation today.

FAQs

What is a business visa for Indonesia?2021-11-01T11:24:13+08:00

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.

How long does it take to register a company in Indonesia?2021-11-01T11:23:40+08:00

The incorporation process usually takes 1-2 months, but this is an estimation and the time required is on a case-by-case basis.

What is The Benefit of Incorporating Your Company in Indonesia?2021-11-01T11:23:13+08:00

Incorporating your company gives you the authority to manage your company and other jurisdictions supported by Indonesia.

What is company registration number in Indonesia?2021-11-01T11:22:43+08:00

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.

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