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First Steps on How to Register a Company in Indonesia

First Steps on How to Register a Company in Indonesia

Before we discuss about how to register a company in Indonesia, then we must know about business licensing first. One of the requirements in registering the company is to attach a copy of the Business Permit and HO Interference License.

Business licensing is a tool to supervise, direct, develop and publish business issuance. For the preparation of business establishment there are 5 things that need to be prepared for business issuance First is the determination of place / location of business, Second business license, Third preparation of business administration, Four procurement of production facilities and raw materials of production, Fifth recruitment and acceleration of Human Resources,

Business Place Permit is the granting of a business place permit to an individual (Person) or a Company (business entity) that does not cause any disturbance or environmental damage at a particular location. HO Interruption License is the granting of business premises to companies or entities in certain locations or places that may cause environmental damage, harassment and other hazards. Business Place License and HOI Hinder Ordinance must be renewed or registered every 5 years.

How to Make Permission Permit for Business Place and HO Interruption License

How to get Business Place License and Nuisance License (HO) as the first step on how to register a company in Indonesia is as follows.

  1. Make a certificate of company domicile
  2. Create a neighbor’s permit

The documents required creating a Business Place License and HO Interruption License are:

  1. Complete and signed form
  2. News of field inspection
  3. Photocopy of Building Permit
  4. Photo of request size 3 x 4 cm as much as 2 pieces
  5. Plan the location of the place of business
  6. Copy of UN repayment for the current year
  7. Lease or contract permit
  8. Photocopy of land certificate or land deed
  9. Photocopy of deed of incorporation of the notary
  10. The statement letter does not object from the neighbors ie the Neighbor License which is known or signed by the head of the region where you live
  11. Photocopy of identity card
  12. Certificate of domicile of the company
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Steps After Getting Business Place License

After the Business Place License and HO Bully Letters issued, it is time to start the company registration process. Here are the next steps on how to register a company in Indonesia;

  • Creating a Corporate Account Number

You need to create a corporate account number. Well before that you need to make the deed of establishment of the company. Notary that helps you to create the account number will ask how many stock questions each owner has. For that you must prepare the following;

  1. Submit proof of deposit
  2. Create an account number on behalf of the company
  3. Make a capital deposit 
  • Creating Logo, Company Brands and Company Name

We recommend that before making the company you need first to design your brand from the identity until the place of your company. These things are what you need to prepare;

  1. Company address
  2. Company name
  3. Company logo
  4. Letterhead and other documents
  5. Business cards and tag line (slogan)
  6. Purpose and purpose of the business
  7. Company seal
  8. The composition of directors and commissioners (especially for Limited Liability Company)
  9. Number of businesses
  • Creating Taxpayer Identification Number

This becomes the government’s stipulation that every taxpayer whether individual person, individual or company owner or entity must have Taxpayer Identification Number.

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If the sales turnover starts to grow and continue to increase in a certain amount eg the higher the turnover is required to register the company as a Taxable Entrepreneur and will be given a Taxable Entrepreneur Confirmation Number.

For taxpayers who do not register themselves to the Tax Office will be subject to criminal sanctions in accordance with Article 39 of Law no. 16 of 2.000 on the Second Amendment to Law No. 6 of 1983 on General Provisions and Procedures for Taxation.

  • Establish a Deed of Establishment

The purpose of making the deed of incorporation as follows:

  1. Provide an explanation of the ownership status of the company
  2. Knowing the amount of capital
  3. Avoid any disputes
  4. Include share value (Percentage of ownership)

You need to know that: Letter of permission is only signed on the seal by the head of the region where you are.

The Documents that you need to prepare before the registration of the deed of establishment of the company:

  1. Copy of Resident Taxpayer Identification Number
  2. Photocopy of Identity Card of the founders
  3. Photo with size 3 x 4 of the company founders
  4. Copy of Family card
  5. Photo office looks front, looks in (room contains tables, chairs, and computers)
  6. Photocopy of payment of Land and Building Tax last year
  7. Letter of domicile from the management of your company building
  8. Photocopy of rent office
  9. Certificate of domicile from the head of residence area 
  • Creating a Trading Business License

Based on the regulation of the Minister of Trade of the Republic of Indonesia No. 36 / M-DAG / PER / 9/2007 challenging the issuance of Business Place Permit and Trading Business License That is a license to conduct business activities be it sales of trade and export imports issued by government agencies through the Department of Industry and Trade in accordance with the place or domicile of the company.

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Trading Business License can be given to entrepreneurs whether state enterprises, firms, cooperatives, individuals, CVs, and Limited Liability Company.

For the maintenance of Trading Business License, whether CV, cooperative, Limited Liability Company or individual must carry complete document along with photocopy to Department of Trade and Industry. The required documents are:

  1. Copy of Taxpayer Identification Number.
  2. Photo of director / head of company size 3 x 4.
  3. Photocopy of Business Place License.
  4. Photocopy of Family Card.
  5. Copy of company domicile certificate.
  6. Copy of owner’s identity card.
  7. Photocopy of notarial deed of establishment of company.
  8. Corporate Balance Sheet.
  9. Photocopy of Certificate of Legalization of Minister of Law and Human Rights.
  10. Photocopy of contract / lease.

After all the steps mentioned above we run, that means we are ready to go to the final process of how to register a company in Indonesia.

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