F & C

Introduction

Starting a business in Indonesia is an exciting venture—but before you open your doors, you need to ensure your operations are legally sound. That means securing the right licenses. Whether you're launching a local company or managing a foreign investment, this guide will help you understand the most common business licenses in Indonesia, why they matter, and how to apply step by step.

Step 1: Understand the Types of Business Licenses

Indonesia issues licenses based on your business activity:

NIB (Business ID Number): The main license to legally operate.
Sectoral Licenses: Needed for industries like construction, education, and finance.
Location Permit: Required to operate your business in a specific area or region.

Step 2: Prepare the Required Documents

Before you apply, gather the necessary documentation. here’s a general list:

Company Deed of Establishment (legalized by a notary).
Domicile Letter (for office location).
Tax Identification Number (NPWP).
KTP (ID card) of the directors or shareholders

Step 3: Register Through the OSS System

Use the OSS system to apply for most business licenses in Indonesia.

Create an OSS account at oss.go.id.
Fill out company and business activity details.
Submit the required documents.
Obtain your NIB (Nomor Induk Berusaha).

Step 4: Comply With Post-Licensing Obligations

Securing the license is just the beginning. To maintain compliance, businesses must:

Register for taxes and file regular returns (NPWP, VAT if applicable)
Report company activities to BKPM (for PMA)
Renew any industry-specific licenses when required

Conclusion

Getting a business license in Indonesia might seem complex at first—but with the right guidance, it’s completely manageable. From understanding the license types to using the OSS platform and staying compliant, every step brings you closer to running your business with confidence and legality. Whether you're a solo entrepreneur or managing a global expansion, legal licensing is your first step to long-term success.