How to Apply for a Business License for MSMEs Online in Indonesia (Easy 2025 Guide)
MSME Growth and Need for Legal Compliance
Micro, Small, and Medium Enterprises (MSMEs) are the backbone of Indonesia’s economy. With more than 64 million MSMEs contributing over 60% of national GDP, legal business registration is now more important than ever — especially for those seeking government support, funding, and expansion.
To simplify licensing, the Indonesian government introduced OSS (Online Single Submission) — a digital, centralized system to obtain:
- NIB — Business Identification Number
- Business Permit
- Risk-based licensing (OSS RBA)
With OSS, MSMEs can register online without complex bureaucracy — making business legality accessible nationwide.
Why MSMEs Need a Business License
Legalizing your business provides crucial benefits:
| Benefit | Explanation |
| ✅ Legal Protection | Operate safely under Indonesian business law |
| ✅ Eligible for Funding | Access bank loans, investors, grants, and capital programs |
| ✅ Trust & Credibility | Customers prefer legally registered businesses |
| ✅ Government Support | Priority in training, export programs, and partnerships |
| ✅ Access to E-Commerce Platforms | Marketplaces like Tokopedia & Shopee require NIB |
📌 Without a license, MSMEs face risks such as business closure, fines, or inability to scale.
What License Do MSMEs Need?
The main legal identity required is:
NIB — Business Identification Number
Issued by OSS, NIB functions as:
- Business license
- Company registry
- Importer’s license (for eligible MSMEs)
- Customs identification number
NIB replaces old SIUP, TDP, & Company Registration (API for import-active businesses).
Required Documents for MSME Online Licensing
Most MSMEs only need the following:
- KTP (National ID) of business owner
- NPWP (Tax ID Number) — optional for micro-scale
- Phone number & email
- Business location details
- KBLI code (Business activity classification)
- Statement of business operational eligibility (self-declaration in OSS)
Optional documents depending on business type:
- Product photo or operational description
- Certificate of domicile
- Environmental permit (for medium/high-risk businesses)
⚠️ MSMEs must choose the correct KBLI code, or approval risks delay or rejection.
Step-by-Step: How to Apply for MSME Business License via OSS RBA
Updated process for 2024–2025:
1. Access OSS System
Visit: https://oss.go.id
Create an OSS account → Login via NIK (for Indonesian citizens)
2. Complete Business Owner Profile
Fill biodata and NPWP (if available)
3. Register Business Entity
Choose:
- Individual MSME
- PT Business (if incorporated)
Enter business details:
- Business name
- Business sector
- Operational scale
- Business address
4. Select the Correct KBLI Code
KBLI determines legal operations (e.g., culinary, retail, services)
✔ OSS will automatically determine risk level:
- Low-Risk → Automatically issued NIB only
- Medium-Risk → NIB + Standard Certificate required
- High-Risk → NIB + License approval & inspections
5. Issue NIB (Business Identification Number)
After verification → digital license issued instantly
Download NIB in PDF format
🎉 Business is now officially registered!
Timeline and Validity
| License | Processing Time | Validity |
| NIB for MSMEs | ✅ Instant (same day) | Valid as long as business operates |
| Standard Certificate / License | 1–14 working days | Depends on classification |
OSS platform works fully paperless — no need manual submission.
Cost of MSME Licensing
💰 Totally FREE (official government cost = IDR 0)
Consultant service fees vary depending on assistance needed.
Common Mistakes MSMEs Should Avoid
- Wrong KBLI selection → business activity becomes illegal
- Business address mismatch with zoning rules
- Owner details not matching official ID
- Not registering required Standard Certificates for medium-risk business
💡 Korsia Group helps ensure zero errors and fast approval ✅
Tips Before Applying
- Define your KBLI code early
- Prepare NPWP for tax compliance
- Choose an address that supports business zoning
- Ensure document accuracy for future expansions
How Korsia Group Helps MSMEs
Korsia Group supports business owners in:
- OSS registration & NIB issuance
- Selecting the correct KBLI code
- Adding business activities for expansion
- Licensing upgrades for growing MSMEs
- Environmental & operational compliance
We ensure your MSME gets fully legal, highly trusted, and ready to scale.
📌 Whether you are a home-based business, online seller, or startup — legalizing your business drives growth and opportunity.
Conclusion
Registering your MSME through the OSS system is one of the most important and easiest steps for growing your business in Indonesia. With NIB as your legal identity, you unlock access to financial support, business partnerships, and national credibility.
If you want a smooth and accurate process — without dealing with technical errors or complex regulations — Korsia Group is ready to guide you from start to finish.
A legally registered MSME is a stronger, trusted, and future-ready MSME.