Registering a Company in Indonesia – Business licensing is one of the most important things in the establishment or establishment of a company or business entity. Business license is a form of approval from the authorities for the conduct of business activities. Important documents are required to obtain a business license.
The documents are used for the legality of the company in the eyes of the law. This is done for the legitimacy of the company itself so as not to get many problems for the future. Many preparations, corporate arrangements, and documents must be completed for registering a company in Indonesia.
Important Documents to Register Company
The documents required for registering a company in Indonesia are as follows:
- Business Establishment Deed
Establishment of Deed of Establishment of Business aimed to avoid the occurrence of disputes in the future about profit sharing proportion of loss. In addition, it also clarifies the company’s ownership status in order to avoid unwanted gal events, such as disagreements when the shares will be resold to your partners or to others as well as the stock purchase valuation process.
You will need to enter into such agreements as stated in the deed of establishment of a company made before a notary for a business entity in the form of a firm, a partnership or a limited liability company. Making a deed here means present in front of the constituents (the subject of the agreement), read and sign the deed.
The making of the deed of establishment is conducted by a notary authorized throughout the territory of the Republic of Indonesia to further obtain the approval of the Minister of Kemenkumham. The Business Establishment Deed contains a company profile created by the business founder with a notary and accompanied by witnesses registered to the local District Court.
- Tax ID number
The taxpayer’s principal number must be owned by the Taxpayer as a self-identification or identity of the Taxpayer in tax administration provided by the tax office in accordance with the resident Taxpayer’s domicile. NPWP itself serves as an identity or identity for taxpayers to implement taxation rights and obligations. The following documents are required to take care of the taxpayer’s principal number.
- Copy of ID for Indonesian Citizen.
- Photocopy of Passport and Resident Certificate from the authorized institution of at least the Village Head or Village Head for foreign nationals.
- Certificate of Domicile of Business Activities or Employment Free from the authorized institution of at least the Village Head or Village Head.
- For corporate taxpayer among other things; Copy of Deed of Establishment and the latest amendment/Certificate from head office. Copy of ID from active board (if WNI). Photocopy of Passport and Resident Certificate from the authorized institution of at least the Village Head or Village Head from the active management (if the foreigners). Certificate of Domicile of Business Activities from the authorized institution of at least the Village Head.
- Business Place License and HO
A business location permit is the granting of business premises to an individual or business entity that does not cause disturbance or damage to the environment in certain locations issued by the local government, that is, the municipality or regency. While the Nuisance License is the granting of business premises to companies or entities in certain locations that may cause harm, disturbance, or damage to the environment.
Business Place License and Nuisance License or also called Hinder Ordonantie/HO must be renewed every five years. The following documents are required to take care of the taxpayer’s principal number.
- Photocopy of applicant’s ID card.
- Photo applicant 3 × 4 as much as 2 sheets.
- Completed data of the signed applicant.
- Copy of SPPT UN last year.
- Photocopy of the Land Deed.
- Copy of IMB, attached situation map for large companies.
- Copy of Deed of Establishment for companies and legal entities.
- No Dispute Certificate from the Village Head or Sub-District and the Sub-District Head.
- A No Objection Statement from a neighbor or neighbor’s permit, known to the Head of Village or Sub-district and the Sub-District Head.
- Minutes Checking location by District Level Check Team for companies with very high or high level of disturbance.
Preparation of Business Administration
Registering a company in Indonesia is a major step. The next step is you also have to make a regular, accurate, detailed, and neat administration system can cause failure in a business.
Because it is important to be a tool in performing analysis of company performance and its parts. with the application of good and neat administration aims to petrify the smooth operation and management of the company, especially in recording and reporting results of operations. Here is the purpose of implementing good administration for the company.1. obtaining information on the business activities that have been done by the company.
- Knowing the company’s performance first and now.
- Programming in a business development plan such as a franchise or license.
- Streamlining the processes in running their work.
- Provide accurate data for strategic decision making process such as capitalization, investment decisions, efficient decisions, and price fixing.
The main function of corporate administration records is as evidence of records, management tools, and as reviewers.
Administrative or administrative activities cover all the work of recording that needs to be done within the company, among others:
- Recording of orders
- Document archiving
- Make a list of employee salaries
- Conducting correspondence into and out of the company
- Record the operation of production
- Compile bookkeeping
- Create a company budget plan
Determination of the Company
There are two things related to the determination of the location of the company. First is the position which is the location. The second is the residence which is the location of the company.
There are several things that need to be considered to determine the place of business place and residence, among others, namely; Business entities with multiple companies must choose different places for each company. In addition, the choice of company residence often depends on expected profitability. All owned companies must also be listed. For registering a company in Indonesia can follow all the procedures that have been determined.