As with other businesses, to become a property agent or broker, KH pals are also required to obtain a license and business permit. This is proof that you offer professional services to the community in the property sector. The existence of business licenses and permits can also guarantee the safety of buyers when making transactions with you. Yes, like a doctor, of course someone will feel calmer to come to a person whose identity is guaranteed by the Indonesian Doctors Association (IDI), right? Well, for the property sector, the agent or broker business license is known as SIU-P4. So, what is meant by SIU-P4? What are the requirements and procedures for obtaining it? Come on, see the full explanation in the following article!
What is a Property Broker?
Before we discuss further about what a SIU-P4 license is and how to obtain the license, it is better to first understand what a Property Brokerage Company is. Broker or Property Brokerage Company is a business entity that carries out its activities as a buying and selling intermediary, lease intermediary, research and assessment, marketing, as well as consultation and dissemination of information related to property based on the orders of the assignor regulated in a written agreement. Now what is meant by property in this case is property in the form of land and / or buildings as well as other facilities and infrastructure which are an integral part of the land and / or building.
What is SIU-P4?
SIU-P4 stands for Surat Izin Usaha Perusahaan Perantara Perdagangan Properti which functions as a certificate or license so that property brokers can work professionally. This is in accordance with the Regulation of the Minister of Trade of the Republic of Indonesia No.33/M-DAG/PER/8/2008 concerning Property Brokerage Companies. Where every brokerage company must have an SIU-P4 issued by the Director of Business Development and Company Registration of the Ministry of Trade, and every 5 years it must be re-registered. So, SIU-P4 is a requirement for establishing a property agent and is considered to have the ability to carry out work as a property broker.
What are the requirements for applying for SIU-P4?
Please note that brokers who wish to apply for the issuance of SIU-P4 must meet the following criteria:
- Property brokerage business activities can only be carried out by Domestic Investment companies (PMDN), but these companies can cooperate with foreign companies in accordance with laws and regulations. (Article 2 Permendag 51/M-DAG/PER/7/2017).
- P4s are required to have at least two experts and branch offices must have at least one expert. The expert must prove his/her expertise with a Certificate of Competence for Property Brokerage and the expert may not work for another P4 (Article 5 of MOT 51/M-DAG/PER/7/2017).
Then how to become a property brokerage expert or commonly called a broker? First, register the company with the Indonesian Real Estate Broker Association (AREBI), in AREBI there is training for prospective Property Brokers. Second, conduct an expert test at the Professional Certification Institute (LSP). After the prospective Broker is trained at AREBI, then the prospective Broker is tested at the LSP. If they meet the requirements, the Broker will be certified as an expert. Furthermore, to apply for SIU-P4 at least includes:
- Scope of assigned activities;
- Property object;
- Rights and obligations of the parties;
- Value or percentage and payment procedures;
- Commission;
- The term of the agreement; and
- Dispute resolution.
Supplementary Documents to Apply for SIU-P4
If you have met the above criteria, you can then apply to get SIU-P4. You can register yourself through the official website of the Ministry of Trade of the Republic of Indonesia. However, first prepare the supporting documents. These supporting documents include:
Company Deed of Establishment
In this case, the business activities section of the company must include business activities that reflect a Property Trading Company.
Ministry of Law and Human Rights Approval Letter
If the company is incorporated, this authorization is needed as proof that your company is registered and legal in the eyes of Indonesian Law.
Certificate of Company Domicile
Surat Keterangan Perusahaan (SKDP) is a legal document that states that your company actually has a place and is domiciled in the appropriate zoning.
Corporate Taxpayer Identification Number (NPWP)
As a good entrepreneur, of course, having an NPWP is proof that your company complies with taxes. After having several legalities above, several things such as having at least 2 (two) experts who are certified in their fields and equipped with:
- A statement letter as an expert in the field of property trading brokerage and not working in other similar companies, on paper with sufficient stamp duty;
- Copy of professional certification (AREBI/Asosiasi Real Estate Broker Indonesia);
- Curriculum Vitae or curriculum vitae; and
- Photocopy of identity card (KTP).
What is the Procedure to Get SIU-P4 for Property Agent?
After fulfilling the criteria, requirements, and complementary documents, then KH Friend can follow the following submission procedure to obtain SIU-P4:
- Fill out the Application Letter (“SP SIU-P4”), the form that must be filled in can be downloaded from the Ministry of Trade website.
- Application for issuance and re-registration of SIU-P4 is submitted to the Director of Business Development and Distribution Actors of the Ministry of Trade through the Online Single Submission or Electronic Integrated Business Licensing Services in the Trade Sector (“OSS”).
- Submit supplementary documents.
- In the submission of documents, even though the documents sent are photocopies, the business holder must be able to show the original documents to be checked for validity and the original documents will be returned after completion.
Then within three days of the application being submitted, a determination will be made regarding:
- If the documents are declared correct and complete, the Director of Business Development and PP issues the SIU-P4 online.
- If it is declared incorrect and/or incomplete, the Director makes a rejection letter with reasons for rejection online. If the SIU-P4 is rejected, it can be reapplied.
The Importance of Having SIU-P4 for Property Agent Businesses
SIU-P4 is an important legality for property brokers or agents in Indonesia. Property agents who operate legally and have SIU-P4 will have a better chance to succeed and thrive in the dynamic property industry. In addition, having SIU-P4 will provide many benefits, including:
Legality and Consumer Trust
Having an SIU-P4 confirms that a property agent is a legitimate business entity and has met the requirements set by the government. With this legality, property agents will gain the trust of consumers because they have operated officially and in accordance with applicable regulations. Consumers will feel safer and more confident in transacting with property agents who have SIU-P4.
Access to Projects and Permits
As a property agent with SIU-P4, you will find it easier to access housing projects and obtain licenses from the government. Many modern housing projects require property agents to have SIU-P4 before being allowed to participate. Thus, property agents will have more opportunities to expand their business and work with housing developers.
Legal Protection
SIU-P4 provides legal protection for property agents in running their business. In the event of a dispute or legal issue related to a property transaction, the SIU-P4 will serve as proof that the property agent is operating legally and can reduce the risk of serious legal issues.
Professional Credibility
In the highly competitive property industry, having SIU-P4 will give property agents a credibility edge. It will also enhance the professional image and reputation of property agents in the eyes of potential clients, business partners, and financial institutions.
Regulatory Compliance
By having SIU-P4, property agents are required to comply with the rules and regulations that apply in the housing and property sector. This will encourage property agents to operate more ethically and transparently, and conduct their business with consumer rights in mind.
KH Contact
This is the explanation of SIU-P4 as the legality of the property business. It can be concluded that SIU-P4 is a very important certificate for agents or brokers to operate legally. No need to worry, all forms of companies can register for SIU-P4, you know. Starting from PT, CV, cooperatives, firms and individuals. The most important thing is, Friend KH can fulfill all the criteria and required documents as described earlier.
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How, ready to run a property business legally? Or are you still confused about the SIU-P4 arrangement? Kontrak Hukum is ready to help you! Together with our professional experts, Sobat KH can consult about the requirements and procedures for obtaining SIU-P4. Not only that, we can also help you to fulfill all the complementary documents to make the SIU-P4 application easier and faster. For more information, please visit KH Services – Licensing page. If you still have questions about the need for other types of business licenses, you can also contact us at Ask KH or send a Direct Message (DM) to Instagram @kontrakhukum.
