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Business licenses
in Indonesia.

Business licenses and permits are needed to operate professionally, and as a business, it is your responsibility to ensure that you have the right documents. Let us help you determine which licenses your business will need, prepare the correct documents, and obtain them.

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Business licenses in Indonesia

What is a business license?

A business license is a document that grants you the right to operate a business. License requirements vary depending on the types of business activities or intellectual property of your company. Obtaining business licenses is mandatory for any business entity in Indonesia, whether for small and medium enterprises or large-scale companies. Without a license, your business becomes susceptible to closure by the government authorities.

Business licenses & permits

Business licenses & permits you may need.

It is required by the government that you obtain a business license if your business concerns a specific industry or requires a high level of liability. In Indonesia, there are four types of business and commercial/operational licenses you may need:

  • Business licenses without commitment fulfilment (type 1)

    Issued via the OSS system issue and become immediately effective. Businesses that include in type 1 among others is a consulting company. The timeline for business license type 1 is 1-2 working days.

  • Business licenses with technical requirements (type 2), Business license with fee requirements (type 3), Business license with technical and fee requirements (type 4)

    Issued via the OSS system issue but do not become immediately effective. Instead, these licenses become effective after businesses have fulfilled the relevant commitments. Provisions relating to these business licenses and commercial/operational licenses are to be further stipulated by the head of the BKPM.

    Some examples of the businesses in which a further license will be required are (these lines of businesses are included in the business license type 2-4):

    • Hotel business
    • Medical device importing business
    • Mining
    • Construction
    • Health and spa business
    • Travel agency
    • Financial services/ fintech
    • Food and beverage distribution service

    For license types 2, 3 and 4, the timeline will vary depending on the fulfilment of the commitments where each activity might have different commitments. However, since the government has simplified the process, the license will be issued within 1-2 days upon the fulfilment of commitment.

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Single fee per license
Business license application process

How getting a business license in Indonesia works.

Let us help you apply for the required licenses you need to run your business in Indonesia.

Determining the licenses
you will need

To know what business licenses you will be needing, we will conduct research to know which licenses are required in order to set up your business.

Preparing and filing the application

When we know which licenses are needed for your business, we will go through the process of preparing the documents and aid you in filing it with relevant government authorities.

Ready for business

When you obtain your business licenses, you are ready for business. The duration for the process of each license varies based on the license type.

About the application process.

The government introduced an online application process in September 2019, the Online Single Submission (OSS) which greatly simplifies the process of obtaining a license for your business. As part of the incorporation process, it is necessary to file a business license application on OSS, where a business identification number (NIB) will be received. Depending on the industry in which you are involved in, it may be necessary to obtain a further license before you can commence business. In November 2019, the government mandated the Investment Coordinating Board (BKPM) to handle all forms of licensing previously handled by a variety of government institutions in a move that is expected to improve the ease of doing business in Indonesia.

Temporary license

A new company will, initially, only receive a temporary license for the business while the company is being set up. The granting of the permanent license is contingent on the capital being paid into the company, and the proposed investment plan being executed. You can operate your business using the temporary license. Still a permanent license will allow you to change the quarterly investment activity reporting (that a temporary license holder must file) to a semi-annual filing of the report. A permanent license will also allow the company to hire foreign employees on a KITAS (work permit).

Required documents

What you will need to get a business license.

In general, the requirements to have a business license are:

  • Company AOA
  • Ministry of Law and Human Rights approval
  • NIB
  • Company Tax ID
  • Details of investment values
  • Other requirements depending on the business line of the company
Ready to get started?

Let us guide you in making your company’s activities fully compliant, watertight and ready for business.

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Not sure where to begin?

Schedule a free 30-minute discovery call to discuss starting & operating your company in Indonesia.

Puji Gulo, Business development executive

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