Understanding the timeline for business registration in Indonesia is crucial for planning and managing your business setup efficiently.
This guide outlines the typical duration for each step involved in the registration process, providing a clear expectation for foreign investors.
How Long Does It Take to Complete the Business Registration Process in Indonesia?
The time required to complete the business registration process in Indonesia can vary depending on several factors, including the type of business entity, the completeness of the required documents, and the efficiency of regulatory bodies.
Here’s a breakdown of the typical timeline for each step:
- Preparation of Required Documents:
Duration: 1-2 weeks.
Notes: This involves gathering all necessary identification and legal documents for shareholders and directors, and drafting the Articles of Association (AoA).
- Company Name Reservation:
Duration: 1-3 days.
Notes: Selecting and reserving a unique company name through the Ministry of Law and Human Rights.
- Notarization of Articles of Association:
Duration: 1-2 days.
Notes: Having the AoA notarized by an Indonesian notary.
- Approval from the Ministry of Law and Human Rights:
Duration: 3-7 days.
Notes: Submitting the notarized AoA for approval and obtaining the Deed of Establishment.
- Business Identification Number (NIB) Registration through OSS:
Duration: 1-3 days.
Notes: Registering through the Online Single Submission (OSS) system to obtain the NIB.
- Obtaining Necessary Licenses and Permits:
Duration: 2-4 weeks.
Notes: The time required can vary significantly depending on the industry and specific licenses needed (e.g., Location Permit, Building Permit, Environmental Permit).
- Tax Registration:
Duration: 1-3 days.
Notes: Obtaining a Taxpayer Identification Number (NPWP) from the local tax office.
- Social Security Registration:
Duration: 1-2 weeks.
Notes: Registering employees with the Indonesian social security programs (BPJS Kesehatan and BPJS Ketenagakerjaan).
- Opening a Corporate Bank Account:
Duration: 1-2 weeks.
Notes: Choosing a local bank and opening a corporate bank account.
Consult with Abhitech as Your EOR Provider
Managing the timeline and ensuring compliance throughout the business registration process can be challenging.
Abhitech, as an experienced Employer of Record (EOR) service provider, can assist by:
- Process Optimization: Streamlining document preparation and submission processes to minimize delays.
- Regulatory Navigation: Managing interactions with regulatory bodies to expedite approvals and licenses.
- Ongoing Support: Providing continuous support to maintain compliance and address any regulatory changes promptly.
With over 30 years of experience, Abhitech ensures a smooth and efficient business registration process, allowing you to focus on your core business activities with confidence.
Sources
Indonesia Investment Coordinating Board (BKPM): Provides comprehensive information on the business registration process and timelines.
BKPM
Ministry of Law and Human Rights: Guidelines on company name reservation and AoA approval timelines.
Ministry of Law and Human Rights
Online Single Submission (OSS) System: Central platform for business registration and licensing, offering estimated processing times.
OSS System
For personalized guidance and assistance, contact Abhitech to ensure your business setup in Indonesia is handled efficiently and in full compliance with local laws.
