Company registration process Indonesia is a mandatory process for any company established in Indonesia. If the company does not register with the government, it is certain that the company is operating illegally.
Laws Related to Company Registration Indonesia
The law that became the basis of the company registration process Indonesia is as follows;
Article 1 number (1) Regulation of the Minister of Trade No. 37 / M-DAG / PER / 9/2007 concerning the Implementation of Company Registration, stipulates that the list of companies is a list of official records held according to or under the provisions of Law No. 3/1982 On the Waijb Register of Companies hereinafter referred to as UU-WDP and / or its implementing regulations and contains matters that must be registered by each company and authorized by the competent authorities of the Company Registration Office.
In the provisions of this Law which must register the company, namely any company in the form of Limited Liability Company, Cooperative, CV, Firm, Individual, and Other Forms of Business, including Foreign Office with status Head Office, Single Office, Branch Office, Subsidiary Office, a Subsidiary which is domiciled and runs its business in the territory of the Unitary State of the Republic of Indonesia.
Steps of Company Registration Process Indonesia
The Company is required to register within 3 (three) months from the start of the business. The terms of the Indonesian company registration process are as follows:
- The registration of the company shall be carried out by the owner, officer, responsible person, or authorized corporate authorization at the Regency / City / Municipal Company Registration Office at the domicile of the company, but the power of attorney herein shall not include the power to sign the company registration form.
- Company registration is done by filling out the company registration form by enclosing the requirements documents, and this provision applies also to company registration for company agent or subsidiary.
- For Limited Liability Company, the company registration form shall be signed by the board or the person responsible for the company, while for the Cooperative, Commandeer Venture, Firm, Individual, and Other Forms of enterprise registration form signed by the owner, management, or corporate responsibility .
- Registration of the company shall be authorized and issued by the Head of Regency / City / Municipality Registration Office no later than 3 (three) working days since the registration form and the requirements documents are received correctly and completely and without any administration fee at all or in other words zero rupiah .
- Company Registration Certificates are issued on the company’s form using colored forms, and any company that has received the Company Registration Certificate in a publicly readable and publicly listed place and the Company Registration Number must be on the nameplate and company documents used in business activities.
- The Company Registration Number shall be valid for 5 (five) years from the date of issuance and shall be renewed by filling out the registration form by enclosing the original document of the Corporate Registry that will be updated without attaching the document of requirement that has been submitted at the time of the previous registration not later than 3 ( three) months before the expiration of the period accompanied by administrative costs, and renewal of the Company Registration Certificate shall be issued by the Regency / Municipal / Municipal Registration Office no later than 3 (three) working days after the receipt of a correct and complete renewal application.
- The rejection of Registration shall be made if the filling of the Company Registration Form is not correct and / or incomplete, and the rejection of this registration shall be submitted in writing to the company by the Regency / Municipal / Municipal Registration Office no later than 3 (days) of work from the receipt of the registration form the company shall be accompanied by reason of refusal and if within 10 (ten) working days after receipt of the rejection letter, not carrying out rectification and / or completing the requirements document, shall re-register by filling out the registration form.
No Compulsory Undergoing Company Registration Indonesia
It turns out that even though companies that are established in Indonesia are required to register in government offices, there are ammunitions that are excluded from the Obligation of the Register:
- Any State enterprise in the form of a service enterprise as stipulated in Act No. 19 of 1969 No. 19 jo Indonesische Bedrijvenwet (Staatsblad 1927 No.419) as amended and supplemented.
- Any individual small Company run by an individual private entrepreneur or employing only his immediate family members and does not require a business license and is not a legal entity or a partnership.
The matters relating to companies that are not required to undergo a company registration process Indonesia include;
- Individual Small Company
- Companies that are managed, run, or managed by private property alone, or only by employing family members themselves.
- Companies that are not required to have a business license or equivalent certificate issued by the authorized institution.
- Companies that do not constitute a legal entity or partnership.
However, the relevant company may be registered in the Company Register if the company concerned wishes it.
Furthermore, it is also regulated by the Ministry of Trade that businesses or activities that operate outside the economic field or its nature and objectives are not solely for profit and or profits shall not be subject to the mandatory list of companies. Examples of such institutions are:
- Formal education (school lines) in all types and levels held by anyone
- Non Formal Education
- Notary Services
- Lawyers Services
- Individual Practice Doctors and Practice group of doctors.
- Clinical treatment
Determination of business or other activities not subject to the mandatory list of companies covered above shall be further stipulated by the Minister. After hearing the consideration of the Minister in charge of the business or activity concerned.
Companies that have participated in the company registration process Indonesia and approved are officially registered as a state-recognized company.