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 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.
||Approval of company name at the Ministry of Law and Human Rights
||Approval from Indonesia Investment Coordinating Board (BPKM)
||Preparation of Article of Association by Notary (Akta)
||Obtain Domicile Letter at the local government office
||Obtain Tax Identification Number (NPWP)
|| Open an account in a bank on behalf of your company
||Obtain the deed of establishment for your company
||Obtain company registration certificate from the local government
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. With the help from us at Paul Hype Page, we would be able to assist you with opening your corporate bank account online.
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 in regards to obtaining the work permit for your foreign workers. Click here for further clarifications on employing a foreigner in your company.
Benefits of obtaining a Business Registration Number in Indonesia
Besides the lengthy process of obtaining a business registration number in Indonesia, there are several benefits that companies with a business registration number will get. These benefits are such as:
- 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. For further clarification, you can refer to here: Indonesia Company Registration.
Paul Hype Page & Co – OSS service provider and Asean Chartered Accountant.
Paul Hype Page & Co. have 3 physical offices in Singapore, Malaysia and Indonesia
Our Firm Goal is to assist Foreigner and Foreign Companies to set up business in Asean.
How we can help you:
We will call you back, please click below link and make appointment with our Sales consultant :
Step 1- Listen to your Business plan and Relocation needs.
Step 2- Analysis your Tax Planning
Step 3- Recommend the most suited type of Company Incorporation, Open Bank account and Work Visa
Step 4- Arrange for your Spouse and Children Visa
Step 5- Assist as your company to hire staffs and handle all HR matters
Step 6- Every financial year end, we assist you with your yearly OSS Finanical and Tax Compliance
Step 7- Assist you to expand business to Malaysia, Indonesia, Vietnam and Thailand.
Get in Touch with Us Today.
Paul Hype Page