How Long to Set Up a Company in Indonesia?
Many people will start to wonder how long to set up a company in Indonesia. Fortunately now the prospective owners of the company, because since the set of Policy Package XII, build business much easier and faster.
This arrangement expects to enhance the standard of proficient, simple and incorporated business authorizing administrations without dismissing great administration. Through this strategy, the administration needs to quicken the procedure of issuing business licenses as per benefit gauges, giving sureness of time and cost in authorizing process and enhance coordination and synchronization of services/offices and neighborhood governments
The goals to be accomplished are the foundation of the present administration conditions that have not been ideal. For instance, authorizing is as yet halfway and broken down, successive (consecutive), not yet completely utilizing on the web data innovation, timing of finishing and vague permitting expenses, and ideal models inside the administration itself as an “allow” and not yet “serving”.
Starting the business becomes the focus of the XII Policy Package. With this deregulation policy package, the process of establishing a limited liability company (PT) will be simplified. If previously based on Act number 40 of 2007 on Limited Liability Company, the minimum capital for establishment of PT is required Rp50 million, now it is much cheaper. Coordinating Minister for the Economy Darmin Nasution revealed this at the State Palace, Jakarta on Thursday April 28, 2016.
Pruning Procedures and Costs
In this package, the authorized capital to establish a PT remains at least 50 million rupiah. However, for Small and Medium Enterprises, the authorized capital is determined based on the agreement of the founders of PT as stipulated in the deed of establishment of PT.
In addition, the formation of PT which initially has to go through 13 procedures is pruned into seven procedures. If initially the cost to establish PT about 7.8 million rupiah, then now only about 2.7 million rupiah.
Pruning this procedure was finally answered many questions from the community about how long to set up a company in Indonesia. Apparently now we only need 10 days from the beginning of 47 days. And the necessary permits are only three things, namely the Trade Business License and Corporate Registration Certificate issued simultaneously and the deed of establishment. Whereas previously it required five licenses, Trading Business License, Company Registration Certificate, deed of establishment, business place permit, and disturbance permit.
7 Steps to Establish Company
Here are seven ways to establish a PT with the deregulation:
- Submission of company name, payment for name message, issuing permit of company name is done in one service system with two days processing process with cost 200 thousand rupiah.
- Obtain a standard corporate deed of notaries that can be obtained within one business day with a cost of 1 million rupiah for PT.
- Approval of permit for the establishment of a legal entity, the issuance of a legal entity license, payment of PNBP, and legalization of a legal entity can be completed within one business day at a cost of 1 million rupiah.
- Submission of Trading Business License and Company Registration License and Social Health Insurance Provider Board online at PTSP, one working day free of charge.
- Company registration at the Department of Labor, one working day at no cost.
- Submission of a list of Online Social Employment Implementing Agencies online, two business days at no cost.
- Obtain the Taxpayer Identification Number and VAT Collector Number as the Inauguration Number of Taxable Entrepreneurs online.
Sanctions for Complicating Business Licenses
Presidential Regulation concerning the acceleration of how long to set up a company in Indonesia has been published by President Jokowi. The Presidential Regulation is part of the package of economic policies XVI.
Coordinating Minister for the Economy Darmin Nasution said, with this Presidential Regulation, the officer unit will be able to work immediately to continue or escort the business license which is still pending in the past which is currently on its side.
In addition, Darmin said with this Presidential Regulation in accordance with the direction of President Jokowi, the business license will be accelerated. The reason, the President said that the permissions that take days, months to years embarrassing so that later licensing which initially 5 years could be 1 year and from 1 year could be 3 months.
Coordinating Minister Darmin also reminded that if there are still stubborn and make a permit is still a long time, then he will report the permit to the President. If the problem is in the local government, then the Local Government will be given a warning in order to speed up the permit.
Therefore if you are currently taking care of business license and constrained because there are certain elements that make it much longer, immediately report to the parties and related agencies. However, the Presidential Regulation is a matter that must be held in every state life implementation, including business.
Hopefully by making it easier to make business permit, there will be many young entrepreneurs in Indonesia that impact on the economic growth of this country. Now how long to set up a company in Indonesia is no longer a meaningful problem. With the government’s new policy, everything is faster, easier and affordable.
