For businesses in Indonesia, obtaining a business license is an important stage that should not be overlooked.
Yes, having the right and appropriate business license is an important thing to consider.
A business license acts as a valid legality in running various types of businesses in this country.
Just imagine if a business runs without an appropriate business license, it is certain that its operations are considered illegal and vulnerable to legal sanctions.
As for the definition, a business license is a license issued by the Online Single Submission (OSS) institution for and on behalf of the minister, head of institution, governor, or regent/mayor after the business actor has registered.
So, what are the business licenses needed by business actors in Indonesia?
How to take care of it?
Check out the full explanation below.
Types of Business License in Indonesia
Generally, the business license required by each business actor is different, depending on what type of business field they will be involved in.
There are various kinds of business license documents that must be fulfilled when you want to set up a business, be it in the form of a PT, CV, firm, which in this case is used for business legality.
Meanwhile, the types of business licenses that need to be known to prepare the establishment of a business in accordance with applicable laws in Indonesia are as follows:
- Business Identification Number (NIB)
NIB (Business Identification Number) is the identity of business actors regardless of the form of the company, be it an individual business, business entity, or legal entity.
NIB is issued by the OSS Institution after the business actor has registered.
This NIB is also valid as a Company Registration Certificate (TDP), Import Identification Number (API), and Customs Access.
- Business Domicile Certificate (SKDU)
This SKDU is one of the documents that must be owned.
Because this letter will later be needed to make other documents such as NPWP, SIUP, TDP and supporting letters for business establishment.
This document is issued by the local Kelurahan or Kecamatan, where you will set up your business.
Usually, this SKDU can be completed within a day if all the necessary requirements have been met.
- Taxpayer Identification Number (NPWP)
This Taxpayer Identification Number (NPWP) is made by tax officials and given to taxpayers, both individual NPWP and legal entity NPWP, as a tool for tax administration as well as an identity for you.
- Trade Business License (UD)
Surat Izin UD (Usaha Dagang) is a letter given to individuals to carry out trading businesses.
This trade business license is different from PT, whose ownership is only managed by individuals.
Even so, business actors still need a Trade Business License as proof of business legality.
- Business License (SITU)
SITU (Surat Izin Tempat Usaha) is a license that must be owned by individual business actors, companies, and business entities as proof that the business place established is in accordance with the regional spatial planning required in the context of investment.
- Principle License
This Principle License is made by the Local Government (Pemda) and given to entrepreneurs or business entities who want to establish a business in an area.
- Industrial Business License (SIUI)
SIUI (Surat Izin Usaha Industri) is a letter required by small and medium entrepreneurs to establish an industrial business.
In the past, the name was Tanda Daftar Industri (TDI).
And now, with the OSS system, business actors can simply use this SIUI as a legality document for the industrial business being run without violating regulations.
- Trade Business License (SIUP)
SIUP (Surat Izin Usaha Perdagangan) is a license made by the Regional Government (Pemda) which is intended for business actors who want to carry out trading business activities.
- Company Registration Certificate (TDP)
Tanda Daftar Perusahaan (TDP) is a proof that the company has been legally registered.
- Construction Services Business License (SIUJK)
SIUJK is a Construction Services Business License that must be owned by a company engaged in Construction services.
With this Construction Services Business License (SIUJK), the company is eligible to run all businesses related to construction projects.
- HO (Nuisance Permit)
Nuisance Permit, or commonly referred to as HO (Hinder Ordonantie) is a certificate stating that there are no local residents who object and are disturbed by the business location run by a business activity in a place.
This letter is issued by the Business Domicile Licensing Office in the Regency or City Government.
- Building Permit (IMB)
IMB (Building Construction Permit) is a license issued by the Local Government (Pemda) to businesses and legal entities that will erect a new building, change, expand, reduce, and / or maintain building buildings in accordance with applicable administrative requirements and technical requirements.
- BPOM License
BPOM permit is a license in the form of a Circulation Permit for food business products or other products that are suitable for consumption, so that the guarantee of the product is very well maintained and safe for use by the public.
This BPOM license is required for food products produced by domestic industries larger than household scale.
- Certificate of Good Function (SLF)
SLF (Certificate of Functioning) is a certificate issued by the Local Government (Pemda) to the owner of a building that has been built in accordance with the IMB, and is suitable for use in accordance with its function based on the results of an inspection from the relevant agency.
- Environmental Permit
Environmental Permit is a permit given to Business Actors conducting business and/or activities that are required to conduct Amdal or UKL-UPL in the context of environmental protection and management as a prerequisite for obtaining a business and/or activity license.
- Location Permit
Location Permit is a permit given to business actors to use land needed in the context of capital investment for their business and/or activities and also applies as a permit to transfer rights.
- Tourism Business Registration Certificate (TDUP)
TDUP (Tanda Daftar Usaha Pariwisata) is a proof of registration that must be owned by various types of businesses related to the Tourism sector, such as Travel and Tourism services, Accommodation Provision, Food and Beverage Provision Services, Tourist Services, Organization of Meetings, and several other types of businesses.
A business license is an important element in running a business in Indonesia.
The type of license required varies depending on the sector and type of business to be run.
By obtaining the appropriate business license, businesses can operate legally and build trust with stakeholders.
What are the Benefits of a Business License for Business Sustainability?
Obtaining a valid business license is an important step to running a business legally and building trust with related parties, such as consumers, business partners, and financial institutions.
In addition, having a business license also has a series of other benefits for business continuity, such as:
- Legality and Customer Trust
Having a business license gives legality to the business, which will increase customer trust.
Customers tend to be more trusting and feel safe transacting with businesses that are legitimate and have official licenses.
- Access to Business Opportunities
A business license provides access to various business opportunities, such as the chance to bid for government tenders, partner with larger companies, or obtain financing from banks and investors.
Without a business license, these opportunities may not be available.
- Legal Protection
Business licenses provide legal protection for businesses.
In the event of a dispute or legal issue, a licensed business is more likely to get legal protection and be recognized by the government.
- Compliance and Sanction Avoidance
Having a business license ensures that the business complies with applicable laws and regulations.
It helps avoid sanctions or fines that can be imposed by the government for running a business without a valid license.
Let’s Get a Business License with a Legal Contract!
Now, you understand that having a business license is an important step to ensure business continuity and success.
So, don’t let your business be hampered by lack of business license legality!
Well, for business people who are still confused or don’t have time to take care of it, you can contact Kontrak Hukum.
We are ready to help you fulfill all business license needs, starting from NIB (Business Identification Number), NPWP (Taxpayer Identification Number), SIUP (Trade Business License), and various other licenses.
As a digital legal platform, we guarantee a fast, easy, and reliable business license process.
Our services are not only affordable, but also supported by a team of experienced professionals.
For more information on business license services, please visit the following pages KH Services – Licensing and Taxation.
Jika masih ada pertanyaan, kamu juga bisa konsultasi gratis di Ask KH or send a direct message (DM) to Instagram @kontrakhukum.
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Get access to various information, discussions, and support from other business people.
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