If you want to apply for a trade business license in Indonesia, submit a completed application form to the Indonesia OSS. The application can be done online or over the counter at their office.
What is required to apply for a Trade Business License in Indonesia?
Starting a business in Indonesia requires several licenses and permits from the government, depending on the nature and size of your business. You will need a trade business license (SIUP), which is required for businesses engaged in trading activities.
The first step in applying for a SIUP is determining the type of business you will be engaged in. There are four main types of businesses in Indonesia:
- Small-scale businesses (UKM): These are businesses with less than Rp. 4.8 billion in capital and employ less than 30 people.
- Medium-scale businesses (IUMK): These are businesses with capital between Rp. 4.8 billion and Rp. 10 billion employ between 30 and 100 people.
- Large-scale businesses (PMDN): These are businesses with a capital of more than Rp. 10 billion and employ more than 100 people.
- Foreign-owned businesses (PMA): Most foreigners own these.
Once you have determined the type of business you will be engaged in, you can begin the application process for a SIUP. The following documents are required
- A copy of the Articles of Association or Partnership Agreement
- A copy of the identity cards (KTP) or passports of the directors or commissioners.
- A copy of the identity cards (KTP) or passports of the shareholders or partners.
- A copy of the business registration certificate (TDP).
- A copy of the Tax Identification Number (NPWP).
- A statement from the bank regarding the company’s capital.
- A local government (Desa/Kelurahan) statement regarding the company’s business premises.
- A trade association (Apindo) statement regarding the company’s business activities.
- A statement from the Ministry of Industry regarding the company’s activities (for manufacturing businesses only).
The benefits of having a Trade Business License in Indonesia
A trade business license, or SIUP, permits a company to engage in trading activities in Indonesia. It is issued by the Ministry of Trade and can be obtained through an online application process.
The SIUP is valid for five years and must be renewed before expiration. Companies that fail to renew their SIUP may be fined and penalised.
There are many benefits of having a Indonesia SIUP license, including:
-Protection From Unfair Competition: SIUP-holders are entitled to protection from unfair competition from businesses that do not have a SIUP. This includes businesses that operate without a license or engage in illegal trade practices.
-Preference in Government Procurement: SIUP-holders are given preference in government procurement processes.
-Visa Facilitation: SIUP-holders may be eligible for facilitated visa processing when applying for business visas.
-Tax Incentives: SIUP-holders may be eligible for certain tax incentives, such as import duty exemptions.
The SIUP is a valuable permit for businesses operating in Indonesia. It provides many benefits and preferences that can help a company to succeed.
Conclusion
You must login to the Indonesia OSS to apply for a trade business license (SIUP). The application must include all of the required supporting documents and the appropriate fee. Once the application is received, it will be reviewed by the department, and a decision will be made. You will be issued a trade business license if the application is approved.
If you are planning to set up a trading company in Indonesia and looking to apply for the SIUP license, you can reach out to incorporation and business license specialists in Paul Hype Page Indonesia.
