Operating and conducting business in Indonesia requires compliance with Indonesian regulations, including obtaining an Indonesian company registration number.
Beyond just a legal requirement, a company registration number offers advantages that can significantly impact a business’s success and credibility. From facilitating financial transactions to enhancing consumer trust, there are various benefits to having a registration number.
Let’s delve into the seven key advantages of obtaining this essential identifier.
What is the company registration number in Indonesia?
Company registration numbers in Indonesia are NIB (Business Registration Number) and NPP (Company Registration Number).
- NIB is a government-issued identification number that is used upon registration for businesses operating in Indonesia. It also acts as a Business Identification Number in Indonesia.
- NPP is required to register employees for Indonesia’s national healthcare program.
Both NIB and NPP are essential for businesses in Indonesia, but they have different roles. NIB is for general business registration and licensing, while NPP is for social security-related purposes.
Business registration numbers in Indonesia are regulated by the Minister of Trade of the Republic of Indonesia’s regulation No. 76/2018. The government requires a registration process for business activity in Indonesia, and the business or company must have NIB proof that it has been registered.
Based on Government Law No. 24/2011 on Social Security Organizing Agency, every employee who works for a minimum of 6 months in Indonesia has to be registered with employment insurance (BPJS) by the company. NPP is required to register your company’s employees for BPJS.
How can you verify a company registration number?
If you need or want to verify the registration status of a business, here are a few methods you can use to check its registration number:
Contacting the business directly
Request the business registration number directly to the company is the simplest way to retrieve a business’s information.
Government websites
The government keeps a business information database in Indonesia, some of which can be accessed publicly on the official website of the Ministry of Law and Human Rights and the Online Single Submission (OSS).
External services
Additionally, some external services or platforms offer business verification services. These services may provide more comprehensive information about the business, including its registration status, history, and any relevant licenses or permits.
Do I need the company registration number?
A company registration number is essential for operating legally in Indonesia. It serves several crucial purposes:
Identification and legitimacy
The company registration number is your official identification, demonstrating its legal compliance with Indonesian regulations.
This transparency fosters trust with authorities and reduces the risk of legal issues.
Enhanced credibility
Possessing a valid company registration number showcases your business as professional and legitimate, boosting its reputation in the eyes of stakeholders.
This includes investors who are more likely to consider your company for funding if they see evidence of proper registration.
Building trust with partners
Company registration number signifies your commitment to following Indonesian regulations.
This transparency creates a secure environment for collaboration with potential partners and suppliers, fostering stronger business relationships.
7 Benefits of obtaining a business registration number
Having a business registration number offers many advantages that significantly contribute to the success and credibility of your enterprise. Here’s a closer look at the seven key benefits:
Identity and legality
The company registration number gives your business a distinct identity and tangible evidence of its legal registration, ensuring compliance with government regulations.
Unlocks business potential
The company registration number facilitates the acquisition of other essential business permits, unlocking many potential opportunities for your business to flourish.
Simplify tax compliance
Company registration number serves as a crucial link to tax registration. It streamlines the tax filing and reporting process, ensuring your business effortlessly adheres to tax obligations.
Improving employee management and quality
A company registration number is a prerequisite for registering employees with BPJS Ketenagakerjaan, which is mandated by the government.
This enhances your ability to manage and maintain the quality of your workforce effectively, not to mention your ability to apply for working visas to employ foreigners in your company.
Enhanced credibility and reputation
Possessing a valid company registration number showcases your business as legitimate and professional, bolstering its credibility and fostering a positive company image in the eyes of stakeholders, including shareholders, consumers, and partners.
Acquire more funding and opportunities
Investors and customers often seek the assurance of a valid NIB as proof of your business’s legitimacy before committing resources.
Moreover, holding a NIB can open doors to funding sources, government grants, subsidies, and business opportunities.
Secure your business
Securing the company registration number from the start lays a robust groundwork for future expansion and progress.
It streamlines obtaining further permits and licenses, guaranteeing your business operations’ long-term security and stability.
How do you obtain the company registration number?
Acquiring your company registration number is an indispensable milestone in establishing your business’s legitimacy in Indonesia. Below is an easy-to-follow guide on securing this essential identifier:
Submit an online registration
Access the OSS-RBA website and register your account with personal details and email address. Then, fill in the new business registration section with your business details.
Prepare licenses and permits (if applicable)
The OSS-RBA system will automatically evaluate your business type and generate a comprehensive list of required licenses and permits, which you can apply directly through the system.
Some licenses may require additional documentation or field inspections by relevant authorities.
Receive your company registration numbers
Upon successful registration and approval of licenses, you’ll receive essential identification numbers, including:
- NIB (Business Registration Number)
- NPWP (Tax Identification Number)
- BPJS Ketenagakerjaan Number (Social Security Number)
- BPJS Kesehatan Number (Health Insurance Number)
Activate your NIB
Logging back into the OSS-RBA within ten working days to activate your NIB.
Read more: Guide to obtaining a business registration number in Indonesia
Obtain your company registration number with InCorp Indonesia
Choosing the right partner to assist you in obtaining your company registration number is crucial for a smooth and hassle-free process.
InCorp Indonesia could help you obtain your company registration number. Our professional consultants possess in-depth knowledge of Indonesian regulations, including the intricacies of company registration.
By partnering with InCorp Indonesia, you’ll benefit from:
- Streamlined process: We handle the complexities of NIB registration, allowing you to focus on your core business activities.
- Expert guidance: Our team’s experience ensures you navigate the process efficiently and compliantly.
- Reduced risk of errors: Our knowledge of regulations minimizes the chance of mistakes or delays in obtaining your NIB.
- Confidence and peace of mind: Knowing your registration is handled by professionals allows you to approach your business ventures with confidence.
InCorp Indonesia can help you establish a strong foundation for success in the Indonesian market. Click the button below to get started.
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
Yes and no. It is vital to choose a reliable distributor as they will register the product under their company and become the product license holder and the import license holder. Changing the local distributor is easier if you are satisfied with the cooperation.
Investors considering investments in Indonesia should assess existing International Investment Agreements between Indonesia and other countries. Having a business presence in countries with such agreements may offer incentives like stronger investment protection and higher foreign shareholding in Indonesia.
A foreign-owned company (PT PMA) in Indonesia is a popular choice among foreigners to set up a business. Foreign investors must check Indonesia’s Positive Investment List to see which businesses are open to foreign direct investment.
Foreigners need to be at least 55 years of age and not work to earn income in Indonesia. Consultation on further requirements is necessary.
