Indonesia has been widely known as a prospective country for foreign investment. The needs for infrastructure and a large population are among the many reasons why the country attracts international investors. If you are interested in setting up a business here, you must first acquire a registration number. Then, how to obtain a business registration number in Indonesia?
What is Business Registration Number?
A business registration number is a set of unique numbers given by the authorities. The number can later be used to apply for company tax, file a return, and many more. Every company established in Indonesia must have this number for the following reasons:
- The registration number is legal proof that the government has acknowledged the company and is protected by relevant laws and regulations.
- The government will freeze and liquidate companies that lack a business registration number. This does not only apply to local companies but also foreign-owned companies (PMA).
- A business registration number is a primary permit to conduct all business operations. This means a company would be considered unlawful since they have no licenses, and communities have the right to report them to the authorities.
- A company that possesses a business registration number is eligible to be included in the list of Indonesia’s state-recognized corporates.
Perks of Having a Business Registration Number
A business registration number provides a number of benefits a company will obtain. Below are some of the said benefits:
- With a business registration number, your foreign company will be able to apply for work visas (KITAS) in Indonesia. Important to note work visa is an essential requirement for local and foreign employees who want to work for foreign companies in Indonesia.
- The registration number allows you, as an owner of a foreign company, to apply for a business visa for any of your business clients.
- The business registration number is like a permit for your company to register for and actively take participation in any business tenders held in Indonesia.
How to Get a Business Registration Number
It’s essential to keep in mind that getting a business registration number is just one step in the lengthy procedure of business registration in Indonesia. As mentioned, the registration number means a permit or legal certificate for obtaining other relevant business licenses. Companies will not be able to conduct their business operations without this number.
To get a business registration number in Indonesia, you can follow the listed procedures below:
- Authorize your company name: First and foremost, you need to decide on your company’s name and register it with the Ministry of Justice and Human Rights. To acquire approval, it would take approximately 4 business days.
- Apply for approval from BKPM: Approval from the BKPM (Indonesian Investment Coordinating Board) will take approximately 12 business days.
- Prepare for the making of Articles of Association: The next step is to prepare all the required documents for the Articles of Association (Akta Pendirian Perseroan), which also should be legalized by a local notary. All of this may take around 4 business days.
- Apply for a domicile certificate: This certificate can be obtained from the local government where your company will be established. The process may take approximately 3 working days.
- Apply for NPWP: NPWP or tax identification number for your company can be applied for in the local tax office. It takes around 3 business days for you to acquire it.
- Open a bank account: Your company should also have a bank account you can open in your preferred local bank. This will typically only take a day to set up.
- Apply for the Deed of Establishment: You can apply for the document in the Ministry of Law and Human Rights. It will take around 20 business days for the completion.
- Apply for the company registration certificate: The application can be conducted in the local government, which typically takes more or less 20 business days.
That’s how to get a business registration number in Indonesia. Suppose you plan to establish a business in Indonesia. In that case, you must first obtain the said registration number to conduct business activities. If you need assistance starting up a company in Indonesia, IZIN.co.id is always here for you. For more information, email us at firstname.lastname@example.org or via WhatsApp.