Register Your Company in Indonesia – A company is a business entity that carries out any type of business that has stable, fixed and long-term nature as well as a body established, working and domiciled in Indonesia for the purpose of seeking maximum profit. Here we will discuss the conditions necessary to establish a private company and its establishment procedures.
The entrepreneur has the authority to undertake an economic process within this sole proprietorship. They set up a sole proprietorship in order to meet the economic and profit needs. Therefore, they are trying to establish a sole proprietorship. However, you should pay attention to the terms and procedures of register your company in Indonesia.
Important Before Registering Company
Things to consider before registering the place of business, among others:
- Place rental agreement. Not a few people who will open a private company rent a place for the establishment of the company. Surely there are some calculations before choosing a place such as environmental conditions, target markets, crowds and more. The lease process is usually done in the form of a written agreement or oral agreement between the landowner and the employer.
The legal basis for lease of premises in the case of business is Article 15544 and article 1560 of the Criminal Code. Where it is explained that a tenant can only use what is rented in accordance with the objectives and agreements that have been made and not allowed to damage or change the shape of the leased premises. In the event of a mistake the landowner can revoke the agreement.
- Building permit. Required accurate calculation and no other permission from the parties concerned in Establishing a building. Building permits must go through the procedural set by the existing rules. One of the basic examples of laws governing building permits is Article 2 Kepgud 76/2000, where every activity that will build or build a building must have a building permit from the surrounding government. Submission of application for building permit can be submitted by letter written to the Governor through the Office for several buildings, among others: residential buildings, non-residential buildings, and other buildings.
Terms of Establishing an Individual Company
In the procedure to register your company in Indonesia there are at least three important aspects that must be considered in the establishment of an individual company, including:
1. The first thing you must have as an entrepreneur is having to find the human and natural resources that suits your business, the total amount of capital should be well calculated and correct. Capital can be obtained from personal savings, loans from relatives or relatives, loans from Bank and non-Bank financial institutions.
2. The second is having to compile and make a bookkeeping that contains about;
- The circumstances and amount of wealth owned by the company.
- Needs required by the company.
- Company financial statements per period.
- Outflow of letters, documents, correspondence.
- Working agreements that occur either with government or private parties.
- Archives of all letters, activities and more.
3. Accuracy and compliance in paying taxes, there are several types of taxes to be paid, among others; income tax, value added tax on goods and services, land and building tax and sales tax on luxury goods.
Handling Business License
- Business license is a tool for fostering, directing, supervising, and issuing business establishment. there are 6 things that need to be prepared in preparing the business establishment based on the business proposal, namely the business license, the determination of place/location of business, the procurement of production facilities and raw materials production, recruitment and acceleration of human resources, and preparation of business administration.
- Creating Business Place License and Nuisance License. The steps needed to obtain Business Place License (SITU) and Nuisance License namely; Make a neighbor’s permit and make a certificate of company domicile.
- Create Account Number Company. The notary will ask how much percentage of each share owner. Before making the deed of incorporation of the company. Therefore, must do some things, namely; Create account number on behalf of company, make capital deposit, submit proof of deposit. Follow all procedures to register your company in Indonesia.
Creating a Corporate Logo and Brand Name
You must design and design the identity of the business first, which includes
- Company name
- Company logo
- Company address
- Company seal
- Composition of directors and commissioners
- Purpose and purpose of the business
- Business cards and tag line (slogan)
- Letterhead and other documents
- Number of businesses
Creating Taxpayer Identification Number
Every taxpayer either individual or company owner must have Taxpayer Identification Number (NPWP). The company is required to register as a Taxable Entrepreneur (PKP) and will be given a Taxable Entrepreneur Confirmation Number (NPPKP) If the sales turnover starts to grow and continue to increase in a certain amount.
- Making Deed of Establishment of Company.
- Creating a Trading Business License.
- Make Corporate Registration.
- Make “AMDAL” Analysis of Environmental Impact.
Hopefully some brief explanation about register your company in Indonesia can be useful informations.