In this latest move to increase the ranking of Ease of Doing Business by World Bank and support business actors in trade sector, the Government of Indonesia (i) removes the requirement to re-register Trade Business License or Surat Izin Surat Perdagangan (“SIUP”) and (ii) simplifies the renewal of Company Registration Certifitcate or Tanda Daftar Perusahaan (“TDP”), implemented as of 22 January 2017 and applicable for the existing business entities.
- SIUP Re-registration Removal
A SIUP is a license for a business entity to conduct trade or business activities, i.e sell and purchase of goods or services, or any transaction involving ownership transfer over goods or services. Previously, such business entity shall re-register its SIUP every 5 (five) years, but such requirement is removed by Ministry of Trade Regulation No. 7/M-DAG/PER/2/2017 on Issuance of SIUP. Hence, once an entity obtains a SIUP, it will remain valid as long as the entity operates in trade activities.
- TDP Renewal Simplified
Every entity in the form of Limited Liability Company, Cooperative, Commanditaire Vennootschap (C.V), Firm, individual, and other business entities, which are located and run its business in Indonesia, shall be registered in the Company Registration Office and in turn will receive a TDP. The TDP is valid for 5 (five) years and shall be renewed at a minimum of 3 (three) months before the expiration date. This renewal is simplified in the Ministry of Trade Regulation No. 08/M-DAG/PER/2/2017 on Company Registration Implementation, which only requires the business actors to submit a notification letter by attaching a copy of the previous TDP to the relevant office via electronic format or manually. Within 3 (three) working days as of the submission date, the TDP Office shall issue the new TDP. In the event that the TDP has not been issued within 3 working days, the previous TDP is deemed applicable and renewed.
Please note that it is free of charge to apply for SIUP and renew TDP.
In short, this is welcome news for business actors as it could be time-consuming and a hassle to re-register SIUP and renew TDP when they do not have any changes on the SIUP and TDP.
If you have any questions on the content of this Client Alert or wish to discuss anything about this matter in further detail, please feel free to contact Ms. Poppy Cut Rahmasuci (Partner) and Ms. Sianti Candra (Senior Associate) at email@example.com or +6221 2978 3888.