Business Authorization & Clearance
It is your job as a business owner to acquire all necessary authorizations and clearances to conduct operations legally and ethically. Allow us to assist you with identifying the required entitlements, completing the paperwork, and obtaining those authorizations.
\ Everything You Need to Know about \
What is a Business Clearance
A business authorization is evidence to conduct business. The nature of your company's operations and its intellectual property will determine which clearances are necessary. No company operating in Indonesia is required by law to obtain the appropriate business sanctions, no matter how big or small. The government can shut down your company if you don't have the proper entitlements.
Why You Should
Obtain a Business Clearance
In Indonesia, both small and large businesses are required to obtain a business sanction. Obtaining the necessary clearances to operate in Indonesia is becoming increasingly important for businesses. The government can halt your operations if you do not have the proper authorizations.
According to the 2015 rules, all newly established foreign companies must submit a financial audit along with their business authorization application before applying for a permanent business sanction or any additional entitlements they may need, such as an import authorization.
By implementing this regulation, the government hopes to ensure that all foreign investors follow through on their investment plans. As a result, the effectiveness of foreign investment in Indonesia can be observed.
Types of Business and commercial/operational authorizations
In Indonesia, a company can receive either a "primary" or "non-primary" sanction. Regarding legitimate approval for conducting business, primary sanctions are the most common.
In Indonesia, companies typically operate under three main sanctions: a general business sanction, an industrial business sanction, or a construction business sanction.
Business entitlements and operating sanctions are examples of secondary approvals. All firms, regardless of industry, must obtain the appropriate sanctions before opening their doors.
Requirements to Obtain a Business Authorization:
If a PMA Company achieves the following standards, it will be issued a permanent operating license:
How to Apply for Business Authorization and Clearance in Indonesia
We'll do the legwork to determine what kind of clearance and approvals are needed to get your business up and to run.
Once we've determined the authorization and clearance your company needs, we'll help you get everything ready to submit to the appropriate agencies.
Acquiring the necessary authorization and clearance signifies that your company is set to open for business. Clearance processes take different amounts of time.
Furthermore, Online Single Submission (OSS) was established in September 2019 as a new online application process that streamlines the approval procedure for businesses. After applying for a business clearance on OSS, a company will be issued a national identification number (NIB) and can officially begin operating.
Requirements of a Business Clearance
The basic prerequisites for obtaining a business license are:
In addition, supplementary needs may vary by the company's line of business.
Why Choose Us as Partner
Contact Us For Consultation
Elmar Consultant can assist you with acquiring a business license in Indonesia following the specifics of your company’s needs and goals, thanks to its extensive experience in assisting firms of all sizes in setting up businesses in the country.
Next step: you decide. Get in touch with us, and we’ll help you easily apply for a business license.