When setting up a company in any country, it is always vital to be mindful of the laws and regulations which exist in that country. Such is also the case for anyone who plans to set up a company in Indonesia. Just as is the case anywhere else in the world, those who have not been compliant with the country’s business laws as well as those who have not fulfilled certain criteria will not be allowed to start a company in Indonesia.
Those Who Do Not Have the Required License
Certain business activities to be conducted in Indonesia require a license before the business owner may commence with the undertaking of such activities. Business license provide these business activities with legality as well as official recognition from the authorities. Among the business licenses which may be required by a company which is based in Indonesia include ordinary business licenses, industrial business licenses, and construction business licenses. The business license which is to be selected will depend on the nature and business activities of the business in question. In Indonesia, business licenses are issued by authoritative bodies such as the Indonesian Investment Coordinating Board (BKPM) and the Head of Region Investment Coordinating Board (BKPMD). Licenses may only be received after an application and all supporting documents have received approval from the authorities. The expected duration for the completion of business license approval in Indonesia is 14 working days, and business licenses in Indonesia are typically valid for up to 30 years.