When Sobat KH wants to run a business, especially in the field of trade, SIUP or Trade Business License is one of the legality documents needed.
Why is SIUP important? SIUP can make your business protected and so that you can run business activities safely in accordance with applicable laws. Yes, SIUP is a legal document that must be owned by small, medium and large-scale businesses, as long as the business is engaged in trade.
With the SIUP, KH pals can run a business more safely and without worrying about problems in the future, such as the imposition of sanctions based on applicable laws and regulations. In the future, SIUP can also be one of the required documents for business people to conduct exhibitions, export and import activities, and participate in auctions or tenders.
Considering the importance of this legal document, what exactly is a SIUP? How to make it? Let’s see the explanation below!
What is a SIUP?
SIUP or Surat Izin Usaha Perdagangan is a license issued by the government for all companies or entities that conduct their business activities in the field of trade, such as selling goods or services.
Specific provisions regarding SIUP are regulated in the Minister of Trade Regulation (Permendag) No. 36/M-DAG/PER/9/2007 on the Issuance of Trade Business License which has been amended three times with the latest amendment being Permendag No. 07/M-DAG/PER/2/2017.
SIUP must be owned by business people, ranging from individuals, Limited Liability Companies (PT), Commodity Partnerships (CV), to SOEs to prove that the business being run is legal and legitimate.
This SIUP will be issued by the Industry and Trade Office according to the domicile of the business or company.
Criteria for Businesses that are Not Required to Make a SIUP
Although it is mandatory for all businesses in Indonesia, there are exceptions for businesses or companies that are not required to make a SIUP.
Article 4 of MOT 46/M-DAG/PER/9/2009 provides an exception to the obligation to obtain a SIUP based on the criteria of the business itself.
What are the criteria?
1. Companies that conduct business activities outside the trading sector;
In this case, examples of business activities include doctor’s practices, notary services, advocate services, public accountant office services, and non-formal education services whose business activities are not carried out in the form of a business either in the form of law or not in the form of law.
2. Branch Office or Representative Office;
If a company will open a branch or representative office, it is not necessary to apply for a new SIUP, provided that the business activities carried out are the same as the head office.
A new SIUP is only required if a company develops a new type of business in its business activities.
3. Micro trading companies with the following criteria:
A sole proprietorship or partnership business;
Business activities that are administered, run, or managed by the owner or immediate family members; and
Have a net worth of at most IDR50 million excluding land and buildings.
However, if a micro trading business wants to have a SIUP, it can make a Micro SIUP. So specifically for micro businesses, SIUP is an optional document that is not mandatory to have.
Types of SIUP
SIUP is indeed intended for businesses or companies that carry out trading activities, but SIUP does not consist of only one type for all businesses or companies.
Therefore, before making a SIUP, KH Friend must first ensure that the license that has been made is in accordance with your business or company.
Based on the net worth/amount of paid-up capital, SIUP can be divided into four types, namely:
SIUP Mikro (Optional)
This type of SIUP is intended for micro businesses with a net worth and capital of less than IDR 50 million.
Small business license
This type of SIUP is intended for small businesses with net worth and capital between IDR 50 million and IDR 500 million.
Medium SIUP
This type of SIUP is intended for micro businesses with net worth and capital between Rp500 million and Rp10 billion.
Big business license
This type of SIUP is for large businesses with net worth and capital above IDR 10 billion.
What are the Requirements for Making a SIUP?
Of course, there are several things and administrative requirements that need to be prepared to make a SIUP, and all of these will differ depending on the proposed business venture.
The following are the requirements needed to make a SIUP in each different type of business:
1. Individual Business
Name and VIN
Residential address
Line of business
Investment location
Size of capital investment plan and employment
Business and/or activity contact number
NPWP of individual business actors
2. Non-individual Business
Name and/or legalization number of the company’s deed of establishment
Line of business
Type of investment
Country of origin of investment, in the case of foreign investment
Investment location
Size of capital investment plan and employment
Business entity contract number
NPWP of non-individual business actors
VIN of the person in charge of the business/and or activity
How to Make a Business License
After taking care of the necessary administrative requirements, you can then make a SIUP for your business or company. There are two methods that KH pals can use to make a SIUP, namely by using the OSS system or coming directly to the local Trade Office office.
Here are the procedures that we have summarized to make your business SIUP easier:
1. How to make a SIUP through OSS
Open the oss.go.id website
Click on the Register menu at the top
When on the login page, click register
Fill in the Registration Form and check the Terms and Conditions, then click Register.
Go to the registered company email and find the submission from OSS
Click the Activation button and you will be notified that your registration has been successful.
An OSS Registration Account Confirmation email containing Username, Password, and Identity Number is sent.
Login again using the username and password
Choose Business Licensing
Keep in mind that if your business is in the form of a PT, the company data will be automatically filled in, while for businesses in the form of CVs, Cooperatives, or Individuals, KH Friend must fill in the data manually.
There are several things that need to be prepared to fill in the data, namely Company Data, Management and Shareholder Data, Company Capital Data, and Company Purpose and Objectives.
After everything is complete, select the Business Application menu
Click on the Choose Deed section
KSWP & NPWP Validation Information notification appears, then click Process
Then there is the Application Form page in five steps
The first step is to make sure that the company data matches what is on the page. If so, click the Next button
Complete these steps thoroughly, starting from the Deed of Establishment, Data Completeness, Business License Commitment, to Output
Make sure all data is correct and keep monitoring the SIUP process information.
2. How to make a SIUP through the Trade Office
Visit your local Trade Office with the necessary requirements to collect the registration form.
Fill out the form correctly and completely, including the signature of the person in charge and also the stamp duty.
Make SIUP payments depending on qualifications and domicile
If all requirements are correct and valid, the SIUP will be issued after two weeks.
A series of benefits of making a business license
Apart from the fact that SIUP is required as one of the legality documents based on the Permendag, it also has its own benefits for businesses or companies.
These are some of the benefits of SIUP that can be considered by your friend KH to make SIUP as soon as possible:
1. Receive Government Recognition
A business that is fully recognized by the government will receive legal protection. This protection aims to keep the business free from illegal enforcement. In addition, if there is a dispute in the future, the SIUP can be used as proof of legality.
2. Easy to Participate in Auctions and Tenders
SIUP is also one of the legality documents needed to participate in auctions or tenders for the procurement of goods and services from government agencies.
3. Easy Export and Import Permits
For export-import actors, it is mandatory to have a SIUP because it is a mandatory requirement for every business actor.
4. More Credible in the Eyes of Consumers
Having a SIUP means that your business has been recognized by the government. This means that your business has credibility in the eyes of the state and the law. With this credibility, it can increase consumer confidence.
From the explanation above, it can be concluded that SIUP is one of the business legality documents that KH Friend must immediately take care of when the business starts running. Without a SIUP, KH Friend can be subject to sanctions in accordance with applicable legal provisions. Not only that, KH Friend will also lose the opportunity to develop your business due to the unfulfillment of legality needs.
Well, for KH pals who don’t want to bother taking care of the SIUP, you can immediately contact Kontrak Hukum as one of the digital legal platforms that can help KH pals take care of SIUP documents more quickly, easily, and reliably.
We are ready to help Sobat KH to make SIUP through OSS services by professional experts at Kontrak Hukum. Not only SIUP, our OSS services also include NIB, Statement Letter, and Standard Certification needed for your business licensing.
For more information about OSS, please visit https://kontrakhukum.com/perizinan-dan-perpajakan/ or contact us at the Ask KH link and via Direct Message (DM) to Instagram @kontrakhukum.
