Franchise Registration Certificate (STPW) is an important document in the franchise business in Indonesia. In the franchise business model, STPW is proof of the validity and legality of the franchise business company (franchisor) to carry out its business activities and sell franchise rights to prospective business partners (franchisees). Especially in the midst of many successful and well-known franchise companies in Indonesia, it is important to be able to officially run the business where the franchise company must meet the requirements set by the government and obtain STPW. The STPW registration process itself involves several stages, starting from document review, field verification, and evaluation by a team of experts appointed by the authorized institution. Where if the franchise company meets all the predetermined requirements, they will be given an STPW which is proof that they have met the established quality standards and procedures. So, what exactly is meant by STPW? What are the requirements and procedures that must be followed to obtain it? We have summarized the following for you. Check out the explanation until the end!
What is STPW?
STPW or Franchise Registration Certificate is proof of prospectus registration or agreement registration given to the franchisor and/or franchisee. STPW is granted to franchisees after fulfilling the registration requirements specified in the Ministerial Regulation. The franchisor must register the franchise offering prospectus, while the franchisee must register the franchise agreement to obtain the STPW. The STPW is valid for a period of five years and can be extended for the same period. The Indonesian government itself has regulated STPW in Minister of Trade Regulation (Permendag) No 77/2018, Permendag No 53/M-DAG/PER/ 2012, and Government Regulation (PP) No 24/2018.
What is the Importance of STPW?
Having an STPW is essential for a franchise business as a legal foundation and protection for both parties. In addition, here are some other reasons why a franchise business needs an STPW:
Legality and Validity of Franchise Businesses
STPW is proof of the validity and legality of franchise companies in Indonesia. By having an STPW, a franchise company can carry out its business activities legally and follow all applicable rules and regulations. This gives confidence to potential business partners and consumers that the franchise business has met the quality standards and procedures set by the government.
Legal Protection
STPW provides legal protection to franchise companies and business partners. In the event of a dispute or conflict between the two parties, the STPW becomes the legal basis used as a reference to resolve the dispute. The STPW also provides assurance that franchising companies will comply with their obligations towards business partners in accordance with the established franchise agreement.
Building Trust and Reputation
Having an STPW can help build the trust and reputation of a franchise company in the eyes of business partners, consumers and other related parties. STPW is proof that the franchise company has gone through a rigorous registration process and met the set requirements. This can increase trust and confidence for potential business partners in choosing the franchise company as their business partner.
Access to Resources and Support
STPW allows franchise companies to gain access to resources and support provided by the government. Franchised companies can attend trainings, seminars and events organized by the government to enhance their knowledge and skills in running a franchise business. In addition, the government can also provide valuable guidance and advice to franchise companies to assist them in business development and growth.
Following Quality Standards and Procedures
STPW ensures that franchise companies have met the quality standards and procedures set by the government. These include proven business systems, clear organizational standards, training provided to business partners and operational support. By adhering to these standards, franchise companies can increase the success and sustainability of their business and maintain the overall reputation of the franchise.
Administrative Requirements for STPW
To fulfill the requirements for STPW management, there are several documents that must be prepared according to the application and the origin of the proposed franchise. Where the type of STPW application may differ depending on whether the franchisee is domestic or foreign. In general, here are some of the administrative requirements that are usually required for STPW management in Indonesia:
For new STPW applications where the franchisor is from overseas
- Copy of the franchise offering prospectus;
- Copy of business legality
For new STPW franchise applications originating from overseas
- Copy of technical license;
- Copy of the franchise offering prospectus from the franchisor;
- Copy of franchise agreement;
- Copy of Company Registration Certificate (TDP);
- Copy of franchisor’s STPW;
- Copy of the company’s deed of establishment;
- Copy of ID card of the company owner
For new applications for STPW of continuing franchisors from overseas
- Copy of technical license;
- Copy of the franchise offering prospectus;
- Copy of STPW as franchisee;
- Copy of the company’s deed of establishment;
- Copy of proof of IPR registration;
- Copy of ID card of the company owner
For new applications for STPW for continuing franchisees from overseas
- Copy of technical license;
- Copy of the franchisor’s franchise offering prospectus;
- Copy of franchise agreement;
- Copy of Company Registration Certificate (TDP);
- Copy of franchisor’s STPW;
- Copy of company deed of establishment
- Copy of proof of IPR registration;
- Copy of ID card of the company owner
For STPW applications where the franchisor is from within the country
- Copy of technical license;
- Copy of the franchise offering prospectus;
- Copy of Company Registration Certificate (TDP);
- Copy of the company’s deed of establishment;
- Copy of proof of IPR registration;
- Copy of ID card of the company owner
For new STPW franchisee applications originating from within the country
- Copy of technical license;
- Copy of the franchisor’s franchise offering prospectus;
- Copy of franchise agreement;
- Copy of Company Registration Certificate (TDP);
- Copy of franchisor’s STPW;
- Copy of the company’s deed of establishment;
- Copy of proof of IPR registration;
- Copy of ID card of the company owner
What is the procedure for obtaining STPW?
The following is an overview of STPW procedures in Indonesia:
- The applicant registers at Online Single Submission (OSS) through oss.go.id to obtain a Business Identification Number (NIB).
- After obtaining an NIB, the applicant is required to have a domestic franchisee STPW issued by OSS, but the business license is not yet effective.
- In order for the business license to be effective, the applicant must complete administrative requirements in accordance with applicable regulations to the Investment and One-Stop Integrated Service Office (DPMPTSP) of the respective region.
- After registering online, the applicant submits a hard copy document of the STPW franchisee application from within the country to DPMPTSP through the front office (FO) counter.
- The FO officer checks the completeness of the file, if it is complete, the officer will register and input data and provide a receipt for the file and then forward it to the back office officer (BO).
- Furthermore, BO DPMPTSP verifies the required documents and then issues a technical recommendation letter.
- After that, the documents and STPW franchisee from within the country will be printed and forwarded by the BO officer to the head of licensing and non-licensing services III.
- The head of licensing and non-licensing will check and coordinate the STPW of the franchisee from within the country.
- The Head of the Implementation of Licensing and Non-Licensing Services (P3NP) Division will make a memorandum of submission of the concept of official manuscripts and make coordinating initials on STPW franchisees from within the country.
- The head of service signs the STPW of the franchisee originating from within the country which is then uploaded in OSS
- The FO officer hands over the STPW of the domestic franchisee to the applicant.
- The applicant can print the STPW of the domestic franchisee that has become effective through the OSS system.
From this explanation, it can be concluded that having an STPW is very important for a franchise business as a legal basis, protection for both parties, and building trust and a positive reputation in running a franchise business in Indonesia.
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Now Friend KH certainly understands better, right, one of the legality documents of the franchise business, namely STPW? So, does your franchise business already have it? Or are you still confused about the terms and procedures for managing STPW?
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