Doing business in Indonesia is a lengthy process. There are still many documents and requirements to meet, and sometimes it’s not enough that you have your company registered already. You still need to secure a permanent business license.
PRINCIPAL LICENSE VERSUS PERMANENT BUSINESS LICENSE
If you’re a foreigner who wants to invest in allowed industries in the country, you have to go through BKPM (Indonesia Investment Coordinating Board), where you will present your investment plan. The board then evaluates your application, and if you receive an approval, it will provide you with a principle license (izin prinsip). You can then proceed with the other important steps including the incorporation and company registration.
However, once you have completed all the processes and are now operating fully in Indonesia, you should secure a permanent business license as this license is valid for a lifetime.
With it, you can now:
- Apply for other business licenses depending on the industry you’re in
- Hire foreign employees
- Apply Import License
- Import product under your own company (will be beneficial for trading or distribution company)
Most of all, you keep your company compliant with the laws of the land. It’s good for your business and your reputation.
HOW CEKINDO CAN HELP IN PERMANENT BUSINESS LICENSING
But even getting a permanent business license still has requirements you should be able to meet, and Cekindo is here to make sure you can comply with them. These include the following:
1. Physical Office – Businesses need to have a legitimate professional address as a domicile. In general, using a residence as your office is frowned upon, and it can make company setup more complicated.
While there are different kinds of offices you can choose in Indonesia, we highly suggest the serviced offices in Jakarta and Bali. Cekindo can provide you with a space enough for your needs and budget, with flexible rent options. You will also have access to the essential office support such as mail and call handling, as well as fax and daily cleaning services.
2. Processing of Requirements – Applying for a permanent business license means dealing with a lot of paperwork. If you’re always on the move, that can be challenging to do. Further, besides the primary requirements, you may also need to comply with those of your industry.
Cekindo saves you the burden of preparing and filing these documents as we can draft and process them on your behalf. We can also help you with product registrations and import licenses.
HOW SOON TO APPLY
You have between 1 and 3 years to apply for a permanent business license, but we highly discourage waiting that time. With the help of our business consultants, we can hasten the process so you can start trading in the country with no worries.
For businesses that have been operating since 2015 without a permanent business license, you need to undergo a financial audit. It can be very unsettling especially for new foreign companies. Together with our team and our partners, we’ll help you with the audit review.
The BKPM may also enquire about the delay of the lack of a permanent business license. Our consultants can prepare you for such meeting and guide you through the process.
Many investors may tell you despite the many rules, the country doesn’t enforce all of them strictly. Cekindo suggests ignoring this thought. In the end, it’s always advisable to heed to the side of caution. Don’t put your business in jeopardy by not following the law. Let our company assist you.