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7 ways company registration numbers benefit your business

7 ways company registration numbers benefit your business

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?

7 benefits of having 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.

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    Pandu Biasramadhan

    Senior Consulting Manager at InCorp Indonesia

    An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Frequently Asked Questions

    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.

    To provide you with accurate pricing information for our product registration services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, please get in touch with our consultants.

    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.

    Yes, in a foreign-owned (PT PMA) company, a foreigner can be a director or a commissioner

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