PRIMARY BUSINESS LICENSE
IN INDONESIA

This Legal service for business licenses is to help companies to obtain licenses so they can start to operate. This includes environmental and operational permits so that the company can work legally. In addition, there are also specific licenses for supporting activities such as promotion and distribution, to ensure the company can work within the rules. By working together, these services help companies operate compliantly and efficiently.

Our business license legal services specialize in guiding entrepreneurs and businesses through the complexities of regulatory compliance in Indonesia with efficiency and precision.

We facilitate the acquisition of essential licenses such as the Business Identification Number (NIB) through the OSS system and assist Corporations in registering Business Permit to Support Business Activities (PB UMKU) requirements and conditions.

With straightforward and clear approaches, our experienced legal team ensures all documentation is prepared and submitted accurately, considering various regulatory challenges and its effects on business. Beyond transactional support, we provide strategic legal counsel to optimize business operations and maintain ongoing compliance, providing integrity and transparency.

Our goal is to empower businesses to operate confidently within legal frameworks, obtaining trust from the market, and 

capitalize on growth opportunities in Indonesia’s dynamic business landscape.

General Business License
below are the details of how a legal entity can operate in Indonesia

Business Identification Number / Nomor Induk Berusaha (NIB)

As NIB is issued through the Online Single Submission (OSS) system, it is compulsory for all types of businesses to apply for the registration upon incorporation. It functions as a primary business registration number, import-export license, and customs registration.

The Company is required to register for number tax identification number from the regional Tax Office where the Company has its address be registered. It is required for the Company to fulfill its tax compliances. Further, upon reaching above VAT threshold, the Business Tax/VAT Taxpayer (Pengusaha Kena Pajak/PKP) registration will be required.

Upon conducting the business activities, registration of business licenses are required for the operational compliance. Different industries have different types of business licenses, as for example:

  • Trade Business License (Surat Izin Usaha Perdagangan/SIUP) – for trading businesses.
  • Industrial Business License (Izin Usaha Industri/IUI) – for manufacturing businesses.
  • Tourism Business License (Tanda Daftar Usaha Pariwisata/TDUP) – for businesses in the tourism sector.
For more information on which business licenses are required, reach out to our consultants today!

In Indonesia, the location permit as issued through the OSS system is to ensure the business operates in an  area with authorization based on regional/local zoning regulations. As for business with environmental impact upon its operations, obtaining an environmental license is a crucial aspect. Under the Online Single Submission (OSS) system, environmental licensing is inclusively integrated. Depending on the type of business and its potential environmental impact, businesses may need to obtain an Environmental Impact Assessment (AMDAL) or Environmental Management Efforts and Environmental Monitoring Efforts (UKL-UPL).

For certain business activities, based on the qualifications, licensing documents are required to be fulfilled through the OSS-RBA system. In Indonesia, the Online Single Submission (OSS) system features a module known as Risk-Based Approach (RBA) for business licensing. This approach is designed to streamline the licensing process by assessing potential risks associated with different business activities, enabling a swift licensing process based on the risk classification of the business.

Licensing Requirements are as follows:

  • Low-Risk Business: Businesses deemed low-risk might only require a simplified business license and may not need extensive environmental or operational permits. In this category, NIB is sufficient.
  • Medium-Risk Business: Medium-risk businesses are divided to Medium-Low Risk and Medium-High Risk. This classification may need to submit additional self-declared standard certificate, including basic environmental compliance.
  • High-Risk Business: Those categorized as high-risk will be subject to more stringent requirements, including detailed environmental assessments (AMDAL) and various business licenses/permits.

Depending on the industry, additional licenses may be required , such as:

  • National Food and Drug Authority (NFDA/BPOM) License: applicable for food, drug and cosmetics industry.
  • Halal Certification: for businesses dealing with halal products.
  • Import/Export License: upon engaging with international trading business.
  • Indonesia National Standard Certification (SNI):  a mandatory or voluntary certification issued by BSN (Badan Standardisasi Nasional) and implemented by KAN (Komite Akreditasi Nasional). It ensures products meet quality, safety, and environmental standards.
To be certain of which sector-specific license is mandatory for your business, reach out to our consultants today!

REASONS TO COMPLY WITH THE BUSINESS REGULATIONS:

Legal Standing and Operational Approval

Obtaining these licenses ensures that your business operates within the bounds of Indonesian law. It provides official recognition and approval from regulatory authorities, safeguarding against legal risks and potential fines or penalties for non-compliance.

Market Access and Expansion

Compliance facilitates access to broader markets, both domestically and potentially internationally. It enhances credibility and trust among customers, suppliers, and partners who prioritize working with legally compliant businesses.

Operational Efficiency

Streamlined processes through OSS and PBUMKU registration simplify administrative tasks and reduce bureaucratic hurdles. This efficiency allows businesses to focus more on growth and innovation rather than navigating complex regulatory frameworks

Risk Mitigation and Sustainability

Adhering to regulations ensures that your business operates sustainably, considering environmental impacts, consumer safety, and fair labor practices. It mitigates operational risks and contributes to long-term sustainability in the marketplace

Why Choose Us?

With our assistance on Business License Service, you can rest assured that we cover thorough examination during the process with dedicated assessment comparing to the principle compliance standards.

Get Started!

Our dedicated team is ready to assist you and providing the necessary legal support to address your concerns in accordance with Indonesian law.

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