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LICENSING AND NON-LICENSING SERVICES TO START A BUSINESS

17 Jun

In order to bring about a conducive business climate and increase investment, it is necessary to standardize how long licensing and non-licensing services to start a business take, thus, on 16 December 2009 the Ministers of Domestic Affairs, Law and Human Rights, Trade, and Manpower, and the Head of the Capital Investment Coordinating Board issued a Joint Decree Nos. 69 Tahun 2009, M.HH-08.AH.01.01.2009, 60/M-DAG/PER/2009, Per.30/MEN/XII/2009 and 10 Tahun 2009 concerning Speeding Up of Licensing and Non-Licensing Services to Start a Business (Joint Decree).

The Joint Decree provides that the licensing and non-licensing services to start a business are services for (i) registration for company name and the drawing up of the deed of establishment of the company, (ii) ratification of the status of legal entity, (iii) payment of non tax state revenue (PNBP), (iv) registration and announcement of limited liability company in State Gazette, (v) registration of tax registration code number (NPWP) and taxable entrepreneur confirmation letter (NPPKP), (vi) processing of business license (SIUP), (vii) processing of company registration certificate (TDP), (viii) registration of labour mandatory report (Wajib Lapor Ketenagakerjaan), and (ix) registration for workers social security program (Jamsostek).

The time given under the Joint Decree for these services are as follow: (a) use of company name and ratification of the status of legal entity, registration and announcement of limited liability company in State Gazette, and payment of PNBP in the bank, a maximum of 8 working days ; (b) issuance of NPWP and NPPKP by the Directorate General of Taxation, a maximum of 1 working day; (c) issuance of SIUP and TDP by the Provincial Government and Municipality/City Government to be conducted simultaneously, a maximum of 3 working days; and (d) issuance of statement on labour mandatory report and participation in workers social security, a maximum of 5 working days.

To implement the above Joint Decree, the Ministry of Trade c.q. Directorate General of Domestic Trade issued a Circular Letter No.10/PDB/SE/01/2010 dated 27 January 2010 concerning Speeding Up of the Issuance of Business Licence (SIUP) and Company Registration Certificate (TDP). This circular letter includes among others (a) guidance to the relevant services administrator to issue SIUP and TDP simultaneously in a 3 working days, and (b) in administering the issuance of SIUP and TDP, the regional governments must follow the Minister of Trade Regulations Nos. 36/M-DAG/PER/9/2007 jo 46/M-DAG/PER/9/2007 and 37/M-DAG/PER/9/2007 regarding the Issuance of SIUP and Administering of Company Registry.

 
 

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