Business License in Indonesia


Ever wonder what you need to obtain as a legal foundation for your business in Indonesia? For aspiring entrepreneurs, either local or foreign, securing the right legal administration is critical to ensure the legality of our business and streamline the legal processes we need to run a company in Indonesia.

What is a Business License and why you should consider it for your Indonesian Business?

Operating a business in Indonesia without a proper license is strictly prohibited.  A business license serves as a legal permit authorizing you to conduct commercial activities. It signifies compliance with Indonesian regulations, fostering trust with potential clients and partners.

Who is it for?

Business licenses in Indonesia come in various forms, tailored to the specific industry and business activity.  They are mandatory for all entities conducting commercial operations, regardless of size or structure – from small local shops to large multinational corporations.

Benefits of Having a Business License

Securing a business license offers a multitude of advantages. It grants legal recognition to your business, enabling you to open bank accounts, enter into contracts, and apply for necessary permits. Additionally, it enhances your credibility and professionalism, attracting customers and facilitating potential partnerships.

Furthermore, the points below conclude the major advantages of having a business license in Indonesia:

Legality and Credibility: A license demonstrates your commitment to operating within the legal framework, enhancing your business image and credibility.

Market Access: Licenses often unlock access to specific sectors and enable participation in tenders and government contracts.

Financial Benefits: Certain licenses may qualify you for tax breaks or other financial incentives.

Peace of Mind: Operating legally reduces the risk of fines, business closure, or legal disputes.

Consequences of Operating Without a License

Operating without a license exposes your business to significant risks. Penalties can range from hefty fines to business closure and potential legal repercussions.  Don’t let an avoidable misstep jeopardize your entrepreneurial journey in Indonesia.

Fundamental Business Licenses in Indonesia

The specific licenses required for your business will depend on its nature and location. However, some fundamental licenses apply to most businesses:

Nomor Induk Berusaha (NIB) 

This serves as your core business identification number, acting as a single registration for various permits.

Izin Usaha Mikro dan Kecil (IUMK)

This license is specifically for micro and small businesses.

Surat Izin Usaha Perdagangan (SIUP)

This license authorizes you to conduct trading activities.

Obtaining a Business License: Requirements and Steps

The process of acquiring a business license in Indonesia can involve several steps and specific documentation.  LetsMoveIndonesia, with its team of experienced business consultants, can simplify this process.  We can guide you through the necessary requirements, assist with document preparation, and ensure a smooth application process.

Additional Considerations

Beyond the core licenses, depending on your industry, additional permits or licenses might be necessary.  LetsMoveIndonesia can provide comprehensive guidance on these specific requirements.  Furthermore, regulations can vary slightly between provinces.  Our local expertise in both Jakarta and Bali ensures we can navigate the nuances of each region.

Ready to Kickstart Your Business Journey?

By obtaining the necessary business licenses, you set your business up for success in Indonesia.  Partnering with a reliable business agency in company registration can give you security while streamlining the business landscape in Indonesia with their services ready to assist you every step of the way.  

LetsMoveIndonesia is a reliable business consultancy firm that offers a wide range of services for both local and foreign companies. These services include various company registration types, tax compliance, work permits, and more. By working with LetsMoveIndonesia, you can focus on launching your venture in Indonesia while they handle your business application with care and efficiency.

Contact LetsMoveIndonesia today for all your business setup and tax consulting needs. Fill out the form below to speak to LetsMoveIndonesia’s legal consultant now!


Still have questions about Business and Investment in Indonesia? Contact our trusted business and legal consultant partner, Lets Move Indonesia!

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