Steps on How to Register a Local Business in Jakarta for Future Business Person #StartFranchise
Table of Contents
- Decide on the Legal Entity
- Reserve a Business Name via AHU System
- Draft the Deed of Establishment with a Notary
- Obtain a Tax Identification Number (NPWP)
- Register for Business Identification Number (NIB)
- Apply for Additional Permits
- Secure a Business Address and Domicile Letter
- Finalize Registration and Begin Operations
StartFranchise.id - Starting a business in Indonesia can be a land of profit waiting, but the business person still needs to find the perfect land to do so. One place where it could all happen is in Jakarta. Jakarta is a land of promising opportunity as it is still the capital of Indonesia and a major economic hub where all the economics of Indonesia happens. Jakarta offers a vast market for both local and foreign entrepreneurs. However, before officially running your business, it is crucial to understand the process of how to register a local business in Jakarta properly.
Following the right steps will not only give the business a strong legal foundation to avoid all those legal problems that could bite you on the way, but also build trust with customers and partners. Here are the step-by-step guidelines every future business person who wants to take the opportunity in Jakarta needs to know.
Decide on the Legal Entity
The first step in how to register a local business in Jakarta is to choose the right legal entity for your company. In Indonesia, common options include:
PT (Limited Liability Company): Suitable for medium to large-scale businesses.
CV (Limited Partnership): Often chosen for small to medium businesses.
Firma (Partnership): Typically for businesses run by multiple individuals with full responsibility.
Sole Proprietorship (UD): A simpler structure for individual businesses.
Choosing the right structure will affect taxation, ownership, and legal requirements. All business people must choose the correct one as picking a legal entity that is below your scale could get your business in legal trouble such as tax evasion and many more.
Reserve a Business Name via AHU System
Once the future investor in Jakarta has decided on the legal entity, the next step is to reserve a business name. The name must be unique and not already registered by another company. One tip to choose your name is to avoid superlatives like “best” and keep it under three Bahasa words for faster approval. For PT, this process is done through the AHU Online system under the Ministry of Law and Human Rights.
The reservation usually takes a few days for approval. Make sure the name follows the rules and does not infringe on any existing trademark.
Draft the Deed of Establishment with a Notary
For entities such as PT or CV, the Deed of Establishment must be drafted and legalized by a notary. This document includes basic company details such as name, office address, ownership structure, and capital investment.
Once signed, the notary will register the deed with the Ministry of Law and Human Rights for official approval. So, for foreign investors, it is recommended to find a local notary first that can help your legal process faster and safer.
Obtain a Tax Identification Number (NPWP)
Every company in Jakarta is required to have a Tax Identification Number (NPWP). This can be registered at the local tax office or online. NPWP is essential for corporate tax reporting and financial administration so the business opened will be confirmed legally and there won’t be any problem.
In order to get the NPWP, the business person need to provide these documents so the NPWP can be processed :
Copy of the Deed of Establishment and Ministry approval
Business Domicile Letter (Surat Keterangan Domisili Usaha)
Business Identification Number (NIB) if already available
Director’s Identification Card (KTP) or passport for foreigners
Register for Business Identification Number (NIB)
Future investors or business people need to apply for a Business Identification Number (NIB) via the Online Single Submission (OSS) system. The NIB serves as the official company ID, and also functions as:
Company Registration Certificate (TDP)
Importer Identification Number (API)
Access to sector-specific licenses
Apply for Additional Permits
Some industries require extra licenses. Every business person needs to make sure the business they are going to open already fulfills the permits needed for their business sector. Some sectors that need permits are :
Food & Beverage businesses may need distribution permits.
Construction companies may need permits from professional associations.
Always double check industry-specific requirements to avoid compliance issues from the government and ensure the business stays on track and safe.
Secure a Business Address and Domicile Letter
A registered office address is mandatory to show that the business is legit. If you use a virtual office, make sure that it is officially licensed. In many cases, a Domicile Letter will also be required for the registration process to make sure that the foreign investor actually is in Indonesia and is able to run the business.
Finalize Registration and Begin Operations
Once the business person has completed all steps above, in getting the Deed of Establishment, NPWP, NIB, and any sector-specific permits, then the company has officially registered in the Indonesian system. They can now:
Open a corporate bank account
Apply for business loans
Build partnerships with stronger credibility
Knowing how to register a local business in Jakarta is key to building a strong and legitimate business in Indonesia’s best land of opportunity. While the process may involve several steps, each is designed to give the company a legal recognition and credibility so the government won’t shut the business down.
For future business persons, completing this process not only ensures compliance but also lays the groundwork for long-term success in Jakarta’s competitive market. If you are interested in knowing more about the business opportunity in Indonesia or how to be a part of it in Indonesia, you can check here for more information.
