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Starting a Trading Company in Indonesia

Trading companies are specialists that cover all export and import operations and procedures. A trading company buys products in one country and sold them in different countries where it has its own distribution network.  

Indonesia abounds with natural resources such as silver, coal, fertile soils, natural gas, petroleum, gold, bauxite, tin, copper, timber and nickel. This had attracted many investors globally in starting a trading company in Indonesia.  

However, starting a trading company in Indonesia is not easy as you would need to obtain a Trading License (SUIP) to perform trade activities here in Indonesia. In this Article, you will be provided with the procedure and steps to start a trading company in Indonesia. 

 

Types of Indonesia Trading License (SUIP)

The first step in starting up a Trading company in Indonesia is to get a trading license. There are generally 4 types of trading companies based on the respective Trading license (SUIP) available in Indonesia. They are: 

Micro SUIP

  • A Micro SUIP or also known as SUIP micro is a license for micro sized businesses. In order to successfully obtain a Micro SUIP, you would be required to satisfy the following requirements: 
  1. A sole proprietorship or partnership; 
  2. A net worth of less than 50 million rupiah (USD 4,000.00), excluding land and building; and 
  3. Its business activities will be managed and maintained by its owners or family members/close relatives. 

 

Small SUIP

  • A Small SUIP or also known as SUIP Kecil is a license for small sized businesses with a net worth of more than 50 million rupiah (USD 4,000.00) but not more than 500 million rupiah (USD 40,000.00), excluding land and buildings 

 

Medium SUIP 

  • A Medium SUIP or also known as SUIP Menengah is license for medium sized business with a net worth of more than 500 million rupiah (USD 40,000.00) but not more than 10 billion rupiah (USD 750,000.00), excluding buildings and land. 

 

Big SUIP

  • A Big SUIP or also known as SUIP Besar is a license for large sized businesses with a net worth of more than 10 billion rupiah (USD 750,000.00), excluding land and buildings. 

 

Types of Indonesia Trading License (SUIP)  Net Worth 
Micro SUIP  < IDR 50 million (USD 4,000.00) 
Small SUIP  > IDR 50 million to IDR 500 million (USD 40,000.00) 
Medium SUIP  > IDR 500 million to IDR 10 billion  

(USD 750,000.00) 

Big SUIP  > IDR 10 billion (USD 750,000.00) 

 

Trading License Application Form 

Having understood on what is the type of trading license you going to obtain, you must then submit an application to the Indonesian government for a trading license by filling up the trading license application form. Do note however that different types of trading license application forms will apply for different kind of companies. They are as such: 

 

Limited Liability Company

  1. Decree regarding the legalization of the legal entity status of the company (Decree of Minister Law and Human Right); 
  2. Statement from the Trading License applicant regarding the company’s business location; 
  3. Domicile Letter; 
  4. Tax Registration (NPWP); 
  5. Copy of the deed of establishment (including any amendments of the articles of association [if any]); 
  6. Two photos of the person in charge or director of the Trading Company, and; 
  7. Copy of identity card (KTP) of the responsible person/director of the head office. 

 

Cooperative Company: 

  1. Statement from the Trading License applicant regarding the Cooperative’s business location; 
  2. Domicile letter; 
  3. Tax Registration (NPWP); 
  4. Copy of Deed of Establishment of Cooperative, authorized by the competent government body; 
  5. Two photos of the person in charge or management of the Cooperative; and 
  6. Copy of Identity Card (KTP) of the responsible person or management of the Cooperative. 

 

CV and a Firm

  1. Statement from the Trading License applicant regarding the company’s business location; 
  2. Domicile letter; 
  3. Tax Registration (NPWP); 
  4. Copy of Deed of Establishment/Deed that has been filed in the District Court; 
  5. Two photos of the owner, the management, or the responsible person of the company, and; 
  6. Copy of Identity Card (KTP) of the owner or from management or responsible person. 

 

Individual Company

  1. Statement from the Trading License applicant regarding the company’s business location  
  2. Two photos of the owner or the responsible person of the company, and; 
  3. Copy of Identity Card (KTP) of the owner or responsible person. 

 

Considerations taken before Starting a Trading Company 

Negative Investment List

Before any plans on starting up the trading company, you must ensure that you are in compliance with the Negative Investment List of Indonesia. This is because in the Negative Investment List, it states out that the prohibited and allowed business for foreign investments. Prohibited or forbidden foreign investments are businesses such as casino business and etc.  

For a better clarification on which types of business would be open and available for foreign investors, consult our local Indonesian Corporate Specialist here in Paul Hype Page today! 

 

Customs Identification Number 

In accordance with the Directorate General of Customs and Excise (DGCE), any import companies must have the customs identification number issued by the DGCE to be in compliance with the customs regulation of Indonesia. This custom identification number is valid if the company is still active in performing their respective business for the last twelve months. 

 

Amount of Products per License

It must be taken into consideration that the trading company license that was provided by the government can only be used for one type of business activities. This simply means that your business must only have one product under one business entity. If you were trade two different products under the same legal entity, then you must obtain at least two licenses for the following two business trade products. 

 

 

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 :

BOOK NOW

 

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

Website: https://www.paulhypepage.co.id

Posted on February 27, 2019 at 11:56 am
Categories: Business In Indonesia

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