OSS Business License Process Made Simple and Legal

Starting a business in Indonesia requires more than just passion and a business idea—it requires legal compliance. One of the most important steps for any entrepreneur or company is obtaining a business license through the OSS (Online Single Submission) system.

The OSS platform, managed by the Indonesian Ministry of Investment (BKPM), was introduced to simplify the business licensing process and promote a transparent, centralized, and efficient registration system. Through OSS, both local and foreign investors can apply for all types of business permits in one integrated platform.

In this guide, we’ll explain what OSS is, the step-by-step process to register your business license, and the required documents you need to prepare. This article will help you understand how to navigate the OSS system easily and ensure your business operates legally and confidently in Indonesia.

What Is OSS (Online Single Submission)?

OSS (Online Single Submission) is Indonesia’s official online licensing platform designed to streamline the issuance of business permits under one integrated system.

Launched in 2018, the OSS system is managed by BKPM (Investment Coordinating Board) and linked directly with other government agencies such as the Ministry of Law and Human Rights, the Directorate General of Taxes, and local governments.

Through OSS, business owners can obtain their Business Identification Number (NIB) and other related permits, including:

  • Business operational licenses 
  • Environmental permits (UKL-UPL) 
  • Commercial or sectoral licenses 
  • Import and export permits (if applicable) 

Essentially, OSS acts as a one-stop platform for all business licensing matters in Indonesia, replacing the traditional, complicated, and time-consuming manual process.

Benefits of Using OSS for Business Licensing

The OSS system provides various advantages that make it easier and faster for entrepreneurs to legalize their business operations:

  1. Integrated System
    OSS connects directly with various ministries and institutions, allowing automatic verification of company data. 
  2. Faster Process
    Most permits can be issued digitally within days, eliminating the need for physical submissions. 
  3. Transparent and Traceable
    Business owners can track the progress of their license applications in real time. 
  4. Legally Binding
    Licenses issued through OSS are recognized by law and valid for all types of business operations. 
  5. Accessible for Both Local and Foreign Businesses
    The system supports the registration of both domestic and foreign-owned companies (PMA). 
Read:  Franchise Business Legality Guide for Partners

Step-by-Step OSS Business License Process

To help you register your business through OSS smoothly, here’s a detailed breakdown of the process from start to finish:

1. Create an OSS Account

Visit the official OSS website at https://oss.go.id.
Select “Register” and create an account using your taxpayer identification number (NPWP) or personal ID (for individual business owners).

Once registered, you’ll receive login credentials to access the OSS dashboard.

2. Complete Company Data

After logging in, you must fill out detailed information about your business, including:

  • Company name and legal form (PT, CV, or individual business) 
  • Business address 
  • Type of business activity (based on KBLI code) 
  • Capital and ownership structure 
  • Company directors and commissioners 

This step ensures that your company profile is synchronized with other government databases such as Kemenkumham and the tax office.

3. Obtain a Business Identification Number (NIB)

Once your data is submitted, the system will automatically generate an NIB (Nomor Induk Berusaha).

This number acts as your official business identity and functions as:

  • Company registration number 
  • Importer identification number (API) 
  • Customs access for import/export 
  • Proof of registration for business operations 

NIB is mandatory for all businesses operating in Indonesia, including small enterprises, startups, and foreign companies.

4. Apply for Business Licenses

After obtaining your NIB, you can apply for other business licenses depending on your sector. Common licenses include:

  • Business Operational License: for companies that provide goods or services. 
  • Commercial License: for companies involved in trading and retail. 
  • Environmental License (UKL-UPL): for businesses that impact the environment. 
  • Location and Building Permits: for businesses requiring physical facilities. 
Read:  Legal Process of Establishing a PT in Indonesia

Each type of license has specific requirements based on the business activity classification (KBLI).

5. Upload Required Documents

To complete your OSS registration, you need to upload several supporting documents. These usually include:

Document Type Description
Deed of Establishment & SK Kemenkumham Proof of legal incorporation approved by the Ministry of Law and Human Rights.
NPWP (Tax ID) Required for tax compliance.
Company Domicile Letter Proof of official business address.
Environmental Documents (if applicable) Such as UKL-UPL or AMDAL for businesses impacting the environment.
Ownership or Lease Agreement Proof of office or warehouse space.
Identity Documents of Directors & Shareholders KTP or passport for foreign shareholders.

Make sure all documents are clear, accurate, and up to date to avoid rejection during verification.

6. Verification and Issuance of Licenses

Once you submit all data and documents, the OSS system will automatically process and verify the information with related government institutions.

If everything is valid, your business license will be issued digitally. You can download the license in PDF format directly from your OSS dashboard.

Estimated Time and Fees

The OSS licensing process is relatively fast compared to manual applications. Typically:

  • Processing time: 3–10 business days, depending on business type and sector. 
  • Fees: The OSS platform itself is free, but you may need to pay certain administrative or local government fees depending on your business activity. 

Common Issues During OSS Registration

Although the OSS system simplifies business licensing, some users still experience technical or administrative challenges such as:

  1. Incorrect KBLI code selection – leading to mismatched license categories. 
  2. Incomplete company documents – causing rejection during verification. 
  3. Unverified tax information – delaying the issuance of the NIB. 
  4. System downtime or updates – occasionally affecting online submissions. 
Read:  How to Register a Company in Indonesia Legally

To avoid these problems, it’s best to work with a professional business consultant like Korsia Group, who understands the OSS system and can handle all the technicalities for you.

Legal Basis for OSS

The OSS system operates under the legal framework of:

  • Government Regulation (PP) No. 5 of 2021 on Risk-Based Business Licensing. 
  • Law No. 11 of 2020 on Job Creation (Omnibus Law). 
  • Regulation of BKPM No. 4 of 2021 on the Implementation of Risk-Based Licensing through OSS. 

These regulations ensure that all licenses issued via OSS have legal standing and are recognized by the Indonesian government.

The Role of Korsia Group in the OSS Licensing Process

As an experienced immigration and business licensing consultant, Korsia Group assists both local and foreign companies in obtaining legal permits through the OSS system.

Our services include:

  • Full consultation and eligibility assessment. 
  • Preparation of company establishment documents. 
  • Submission and monitoring through OSS. 
  • Assistance with additional permits (e.g., BPOM, stay permits, trademarks). 
  • Post-licensing services and document verification. 

With Korsia Group’s expertise, your business license process becomes faster, error-free, and compliant with all Indonesian regulations.

Conclusion

The OSS business license process represents a major step forward in simplifying Indonesia’s investment and business environment. Through OSS, entrepreneurs can now obtain a Business Identification Number (NIB) and complete all licensing requirements in one place—efficiently, transparently, and legally.

By ensuring compliance through the OSS system, you not only protect your company from legal risks but also build a solid foundation for growth and credibility.

If you’re looking to start or expand your business in Indonesia, partnering with a trusted consultant like Korsia Group can save you time, minimize errors, and ensure your entire process follows government standards seamlessly.

A legal and licensed business isn’t just a requirement—it’s a mark of trust and professionalism in the eyes of investors, partners, and customers alike.

Leave A Comment

All fields marked with an asterisk (*) are required