How to Apply for Business Licenses in Indonesia
Corporate Secretary Service – Not only Indonesian citizens, but many foreign citizens also want to do business in Indonesia because of the large profit potential. However, you are obliged to choose the right business license, this depends on what type of business you want to run in this country. The line of business you run in this country will determine which special business license you must apply for in Indonesia.
Basic Businesses to Apply Licenses in Indonesia
In Indonesia there are three basic types of companies that can apply for a business license.
- Businesses whose business activities do not require infrastructure
- Businesses that require infrastructure for their business activities, but at the time of submitting the application do not have infrastructure. (So, you must first apply for several licenses such as a water license, location license, and environmental license).
- Businesses that require infrastructure for their business activities and already have that infrastructure.
This basic classification is stipulated in State law known as Peraturan Pemerintah (PP) 24/2018.
Benefits of Owning a Business License
Once you have a business license, you can freely carry out business or business operations unless it conflicts with valid regulations or laws. And if in the future you close the business, this will also affect the status of your business license.
The following are various business-related activities that can be carried out, including for foreigners in Indonesia:
- Change the land area, even buy additional land if necessary
- Starting activities to carry out production and commissioning
- Investing in human resources
- Invest in better infrastructure
- Invest in facility improvements
- Request a business license to help you invest and operate the development
Three Types of Additional Business Licenses in Indonesia
Apart from the things discussed above, you also need to know what three other types of business licenses exist in Indonesia. Some of them are:
- General business license: this type of license is given to companies that only carry out general business activities. For example, if your company operates in the field of supplying goods and services, of course you will need this type of license to operate.
- Industrial business license: this type of license will be given to entrepreneurs who act as producers, except for entrepreneurs involved in oil, gas and geothermal mining activities.
- Construction business license: this last type of license is for companies that have activities in the construction sector.
It is very important to note that the 3 things above are the most common types of business licenses in Indonesia. So, it is very likely that you will often encounter it or even need it when carrying out business operations in this country.
Main Reasons You Need to Apply for a Business License
You are obliged to notify the government regarding your business activities legally. And the reasons are as follows:
- Having a valid license can help convince the public that the business activities you carry out comply with applicable laws.
- Having a valid license can help convince the government and other parties that you and your company are trustworthy and comply with the laws relating to your business.
- Having a valid license can help you let everyone know what kind of business activities your company is carrying out in Indonesia.
- To regulate the business situation in Indonesia, any company must go through legal procedures and necessary official documents. This kind of thing will really help you to avoid chaos in this country, especially in the business sector.
Conclusion
It may be confusing for some people to understand the process for obtaining a business license in this country. And that’s not surprising at all, because basically the process of obtaining a business license is not easy. Not only that, you may have to submit to various processes to obtain licenses, and it depends on your line of business. Don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now for your business success in the future!
