How to Register a Business Entity for Your Business

Establishing an incorporated business in Indonesia is an important step for entrepreneurs to ensure that their business is legally protected and officially recognized by the state. However, the process of setting up an incorporated business in Indonesia can be complicated and requires careful preparation. In this article, we will discuss the steps that need to be taken to set up an incorporated business in Indonesia.

Determining the Type of Legal Entity

The first step in setting up an incorporated business in Indonesia is to determine the type of legal entity to be established. In Indonesia, there are several types of legal entities to choose from, including:

- Limited Liability Company (PT)
- Cooperative
- Foundation
- CV (Commanditaire Venootschap)
- Firm

Perseroan Terbatas (PT) is the most common type of legal entity in Indonesia. PT is a legal entity that has issued and fully paid capital, and consists of shareholders. Meanwhile, Cooperative is a legal entity established by people who have common interests and aims to advance the welfare of members through joint efforts. Foundation is a legal entity established for social, religious, or humanitarian purposes. CV (Commanditaire Venootschap) is a form of legal entity consisting of two types of partners, namely active partners and passive partners. While Firm is a form of legal entity consisting of two or more people or legal entities working together in a company.

Also Read: Are You a Businessman? Get to know these types of business entities first

Choosing a Company Name or Brand

After determining the type of legal entity to be established, the next step is to choose a company name or brand. The company name or brand must be unique and not already used by other companies in Indonesia. In addition, the company name must also reflect the type of business being run. Avoid choosing a company name by including designations that contain elements of SARA (Ethnicity, Religion, Race, Intergroup), Decency, Plagiarizing other company names, or names that are similar to the names of State Institutions.

You can access the Company Trademark Registration Procedure online through the official website of the Directorate General of Intellectual Property (DJKI) of the Ministry of Law and Human Rights https://dgip.go.id/menu-utama/merek/syarat-prosedur

Making a Company Establishment Deed

The company establishment deed is an important document that contains information about the company, such as the company name, type of legal entity, company objectives, initial capital, management structure, and so on. The company establishment deed must be drawn up by a notary and legalized by the Ministry of Law and Human Rights.

Registering the Company with Related Legal Entities

After the company establishment deed is legalized, the next step is to register the company with relevant legal entities, such as the Ministry of Law and Human Rights or the Investment Coordinating Board (BKPM) if the company has foreign capital. In addition, the company must also register with relevant agencies such as the Licensing Office and Regional Owned Enterprises (BUMD) if the company operates in certain areas.

Obtaining Business License and Other Licenses

After registering the company with the relevant legal entity, the next step is to obtain a business license and other licenses needed according to the type of business being run. Business licenses and other permits can be in the form of SIUP (Trading Business License), TDP (Company Registration Certificate), NPWP (Taxpayer Identification Number), SITU (Business Place Permit), HO (Operational Rights), and so on. In addition, companies must also obtain special licenses and permits if they are going to import or export goods. Obtaining business licenses and other permits is important to ensure that the company is operating legally in Indonesia.

These are some of the things to consider in setting up an incorporated business in Indonesia. By paying attention to the things that have been mentioned above, you can ensure that they start a business with a strong foundation and in accordance with the applicable laws in Indonesia. By having a legally incorporated business, companies can gain many benefits, such as consumer confidence, legal protection, as well as the ability to obtain funding sources from investors. Therefore, companies must pay attention to all the things mentioned above in order to achieve success in running a business.