Business Identification Numbers (NIB) are essential in the process of establishing a company in Indonesia. This guide will provide you with a brief overview of the steps of obtaining a business registration number and why it is important.
What is a business identification number in Indonesia?
The NIB is a certificate issued to companies for licensing purposes and to legally conduct business activities in Indonesia.
Why must companies obtain a business identification number?
It is crucial that companies operating in Indonesia have a NIB because the government cannot issue a business license for companies without a NIB.
When companies obtain the NIB, they will be recognised by the government and protected by relevant laws and regulations. They will also automatically be recorded in the list of state-recognised companies in Indonesia.
Advantages of the business identification number
The benefits of possessing a NIB include:
- Ability to conduct business activities in Indonesia, including import activities (as the NIB can be used as an Import Identification Number)
- Ability to apply for a visa for foreign employees hired
- Have access to custom activities
- Join and participate in business tenders in Indonesia
- Business visa sponsorship for your clients
- Register as a health and manpower social security program
Process of obtaining the business identification number
Required documents to apply for the business identification number
To apply for a NIB, you will need the following documents:
- Business establishment deed
- Approval from the Ministry of Law and Human Rights
- Tax identification number (NPWP)
Steps to obtaining the business identification number
There are three steps to complete when applying for the NIB, which may take approximately 5 – 10 weeks.
|Procedure||Number of working days (approximate)|
|1. Issuance of Deed of Establishment of the company by the notary public||Four working days|
|2. Receive approval of your company name from the Ministry of Law and Human Rights||One working day|
|3. Get the tax identification number (NPWP)||One working day|
|*Please note that the company will need to apply for a physical NPWP card to the tax office. However, the NIB can be processed prior to the obtainment of the physical card.|
Companies in Indonesia need to have NIB to be able to conduct business activities legally. Without NIB, the company cannot conduct any commercial activities in Indonesia; therefore, you must ensure you apply for it. If you have any further enquiries, feel free to contact Acclime for assistance.
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