Required Documents to Apply for a Business License

Applying for a business license in Indonesia requires careful preparation. Whether you are establishing a local company (PT), a foreign investment company (PT PMA), or managing a small and medium enterprise (UMKM), the success of your licensing process largely depends on the accuracy and completeness of your documentation.

This article provides a detailed overview of the types of documents required, specific requirements for legal entities, and practical tips to help ensure a smoother and faster application process.

Why Documentation Matters

In Indonesia, the government has streamlined licensing through the Online Single Submission (OSS) system, introduced under Government Regulation No. 5 of 2021 on Risk-Based Licensing. Despite the simplification, incomplete or inaccurate documents remain the most common reason for delays.

By preparing documents properly, businesses can:

• Avoid repeated submissions and rejections. 
• Shorten the processing time, which is typically 20–30 working days. 
• Build credibility with regulatory bodies and financial institutions. 
• Ensure compliance with tax and corporate governance requirements. 

Types of Business Documents

Different types of licenses require different sets of documents, but some are universal across all industries.

1. Identification Documents

• Passport (for foreigners) with at least 18–24 months validity. 
• Indonesian National ID (KTP) for local business owners or sponsors. 
• Photographs (passport-sized, recent, with background colors according to immigration or licensing standards). 

2. Company Establishment Documents

• Deed of Establishment prepared by a notary. 
• Approval from the Ministry of Law and Human Rights (Kemenkumham) confirming the legal entity status. 
• Articles of Association, detailing company structure, shareholders, directors, and commissioners. 

3. Tax Documentation

• Taxpayer Identification Number (NPWP) for the company. 
• For foreign entities, additional tax compliance records may be requested. 

4. Financial Documents

• Bank statements (personal or corporate) for the last 3 months. 
• Proof of capital deposit, especially for PT PMA (minimum IDR 10 billion paid-up capital). 

5. Business Domicile

• Proof of office address or domicile certificate. 
• Lease agreement or ownership documents if applicable. 

6. Sector-Specific Documents

• Environmental Permits (UKL-UPL or AMDAL) for businesses with potential environmental impact. 
• BPOM Registration for food, beverage, cosmetics, or pharmaceutical businesses. 
• Tourism Business Registration Certificate (TDUP) for hospitality and travel-related sectors. 
• Halal Certification for consumable products as required by law. 

Required Documents to Apply for a Business License

The requirements differ depending on whether the entity is a PT Local, PT PMA (foreign investment company), or UMKM.

For PT Local

• Minimum of 2 shareholders (Indonesian individuals or entities). 
• Deed of Establishment and Kemenkumham approval. 
• NPWP of the company. 
• Bank statement showing sufficient capital. 
• Business Identification Number (NIB) obtained via OSS. 

For PT PMA

• At least 2 shareholders (can include foreign entities). 
• Proof of minimum paid-up capital (IDR 10 billion). 
• Deed of Establishment and Ministry approval. 
• NPWP of the company. 
• OSS registration and NIB issuance. 
• Additional investment approval from BKPM (Indonesia Investment Coordinating Board). 

For UMKM

• National ID (KTP) of the owner. 
• NPWP (if available). 
• Simple financial records or bank statements. 
• Proof of domicile. 
• NIB via OSS, often simplified for micro and small businesses. 

Application Procedures and Document Submission

Once all documents are prepared, the general application process is as follows:

1. Create an OSS Account 
   • Register the company or UMKM details online. 
   • Upload required documents. 
2. Submit Application 
   • Apply for a Business Identification Number (NIB), which serves as the main license. 
   • Apply for additional sectoral licenses based on business type. 
3. Verification 
   • Authorities review the documents for accuracy and completeness. 
   • Corrections may be requested if documents are incomplete. 
4. Approval and Issuance 
   • Once approved, the license is issued electronically via OSS. 
   • This serves as official recognition for the business to operate legally. 

Tips to Complete Documents Successfully

To avoid delays and ensure approval, businesses should consider the following best practices:

1. Double-Check Validity

Ensure all documents—especially passports, bank statements, and domicile certificates—are current and valid.

2. Consistency Across Documents

Names, addresses, and identification numbers must match across all documents to avoid rejections.

3. Prepare for Translation

Foreign documents must be officially translated into Bahasa Indonesia by a sworn translator.

4. Engage Professional Support

Consultants familiar with Indonesian regulations can ensure accuracy and save time.

5. Stay Updated

Regulations may change due to new government policies. Always verify the latest requirements before submission.

Estimated Timeline and Costs

• Document preparation: 1–2 weeks depending on completeness. 
• License processing: ± 20 working days through OSS. 
• Cost: Starting from IDR 10,000,000, excluding translation, notary, or sector-specific fees. 

Conclusion

Preparing the required documents for a business license is the most critical step in ensuring a smooth and legal start for your business in Indonesia. From identification and establishment papers to tax, financial, and sectoral documents, accuracy and completeness are key.

By following the guidelines and tips in this article, entrepreneurs can reduce processing times, avoid unnecessary delays, and ensure their businesses are fully compliant with Indonesian regulations.