Business registration number in Indonesia explained.

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Business registration number in Indonesia explained

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.

Let’s start.

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

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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.

ProcedureNumber of working days (approximate)
1. Issuance of Deed of Establishment of the company by the notary publicFour working days
2. Receive approval of your company name from the Ministry of Law and Human RightsOne 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.

Conclusion

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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