Launching a successful business in Indonesia requires navigating a dynamic legal landscape. One of the most crucial steps is securing your Business Registration Number (NIB), your company’s official stamp of legitimacy and key to unlocking efficient operations.
With an NIB, you can streamline administrative processes, access vital business licenses, and build trust with stakeholders, paving the way for efficient and sustainable operations.
Understanding the business registration number in Indonesia
The NIB is a unique identifier serving as your business’s official registration with the Indonesian government. It’s essential for several reasons:
Government recognition
The NIB proves your company’s legal existence, granting access to relevant laws and regulations for protection.
Compliance and legality
Without an NIB, businesses risk government sanctions, including freezing or dissolution, and can be reported by communities as unlawful.
Streamlined operations
The NIB acts as a primary permit, opening doors to obtaining other necessary licenses and facilitating efficient business activities.
State Recognition
Companies with NIBs are listed among Indonesia’s recognized corporates, building trust and credibility among the public.
Read more: Navigating business incorporation in Indonesia
Why should a company obtain a business registration number?
Getting a business registration number is essential when starting a company in Indonesia for a few important reasons:
- Any company, whether a local PT company or a foreign-owned company (PT PMA), can face government freezing and dissolution if it lacks a business registration number during an inspection.
- Communities can report companies without permits, considering them illegal and irresponsible.
- A business registration number means the government officially recognizes and protects the business according to applicable laws and regulations.
- Companies with a business registration number in Indonesia are included in the list of state-recognized companies.
- The recognition builds trust in the company’s performance and activities among the public.
The benefits of having a business registration number in Indonesia
The advantages of having a business registration number or Nomor Induk Berusaha (NIB) are:
| Benefits | Description |
| Conducting business activities | The NIB allows you to engage in various business operations, including import activities, as it functions as an Import Identification Number. |
| Visa application for foreign employees | Streamline international staff hiring and relocation by applying for visas on their behalf. |
| Customs access | Simplify customs-related processes and engage in efficient import and export activities. |
| Participation in business tenders | Participate in business tenders within Indonesia, expanding opportunities for contracts and projects. |
| Business visa sponsorship | Facilitate business visa acquisition for clients, enabling easier engagement with your company in Indonesia. |
| Social security program registration | Ensure compliance with regulations and provide employee benefits by registering for health and workforce social security programs. |
How to obtain a business registration number in Indonesia
It is crucial to understand that getting a business registration number is just one part of Indonesia’s complex business registration process. This number is a permit or legal certificate mandatory for acquiring other significant business licenses. With it, companies can conduct their business operations.
To obtain a business registration number in Indonesia, you can follow the procedures given below:
1. Complete online registration
- Access the Online Single Submission Risk-Based Approach (OSS-RBA) system at https://oss.go.id/.
- Create an account with your personal details and email address.
- Select “New Business Registration” and follow the prompts to fill in your company’s information, including company name, business activities, legal structure (PT, CV, etc.), location, capital investment, and directors and shareholders.
2. Obtain licenses and permits (if applicable)
- The OSS-RBA system will automatically assess your business type and generate a list of required licenses and permits.
- Apply for these licenses directly through the OSS-RBA system.
- Some licenses may require additional documentation or field inspections by relevant authorities.
3. Receive NIB and other registration numbers
Upon successful registration and license approval, you’ll receive:
- NIB (Business Registration Number)
- NPWP (Tax Identification Number)
- BPJS Ketenagakerjaan Number (Social Security Number)
- BPJS Kesehatan Number (Health Insurance Number)
4. Activate your NIB
Activate your NIB within ten working days by logging into the OSS-RBA system and completing the activation process.
5. Obtain a local Trading business license (Surat Izin Usaha Perdagangan – SIUP)
Apply for a SIUP through the OSS-RBA system or your local Investment Coordinating Board (BKPM).
6. Additional information
- Business Domicile Letter (SKDP): No longer required since 2023. NIB serves as proof of business domicile.
- OSS RBA Transition: Businesses with existing OSS accounts must have transitioned to OSS RBA by the end of 2023.
- Single Identity Number (SIN): From January 2024, taxpayers must integrate their NPWP with their NIK (National Identity Number) to form a SIN.
Guide to Doing Business in Jakarta
Obtain your business registration number with InCorp Indonesia
Securing a business registration number in Indonesia is essential for companies to engage in vital activities such as tax applications and return filings.
While the process may seem complex, seeking professional assistance can significantly streamline it. Consider consulting experienced business registration professionals to navigate the legalities and ensure you obtain all necessary permits with InCorp Indonesia for a smooth and successful journey.
With a proven track record, InCorp Indonesia can guide you through the complexities, ensuring your company obtains the necessary permits, including the crucial business registration number, to thrive legally in the Indonesian market.
Daris Salam
COO Indonesia at InCorp Indonesia
With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.
Frequently Asked Questions
To provide you with accurate pricing information for our visa and immigration consultation services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the services may vary accordingly. For pricing details, please talk to our experts.
Yes, you will receive an administrative penalty for delaying or not correctly and promptly filing the tax report. It is best to hire a local third party to handle your taxation matters in Indonesia, such as InCorp.
Establishing a PMA Company in Indonesia typically takes around two weeks after completing document requirements. Following establishment, additional steps such as obtaining licenses and registering for Tax ID vary based on business type. Last, some licensing processes may take time, necessitating thorough planning and preliminary assessments of the business plan for a smoother process.
Indonesian Company Law establishes a two-tier governance system with Directors managing day-to-day operations and representing the company, while the Board of Commissioners supervises and advises them. The articles of association may empower board of Commissioners to provide consent or assistance to Directors for specific legal acts.
