START NOW – In the business world, having clear legality is very important. That’s why it is important for you to know how to make an NIB. 

By knowing the details on how to make an NIB, you’ll be able to take care of the process smoothly.

Definition of NIB

NIB or Business Identification Number is a unique identification number for every business entity that given by the Indonesian government. 

Obtaining NIB is the main requirement for every business actors, whether in the form of a legal entity or individual.

NIB functions as a proof that a business has been officially registered. It contains important informations, including the type, owner and location of the business.

Furthermore, NIB also functions to replace various types of permits previously required to carry out business activities.

As such, the existence of this NIB has helped to simplify the business licensing process in Indonesia.

By having NIB, business actors can access various services, permits and facilities needed to run their business.

This includes financing from financial institutions, trademark registration and other permit applications.

Legal Basis

Before learning in detail about how to make an NIB, you should know the legal basis for its existence, namely:

Government Regulation Number 24 of 2018

This regulation on Electronic Integrated Business Licensing Services recognizes NIB as a permit as well as a valid business identity.

This simplifies the licensing process that previously required multiple separate permits.

Regulation of the Coordinating Minister for Economic Affairs Number 7 of 2021

This regulation explains further regarding the implementation of OSS (Online Single Submission) system and the NIB registration process.

In it, the steps and requirements on how to make an NIB are regulated and detail. 

Law Number 11 of 2020 concerning Job Creation

This law aims to create a better investment climate and speed up the business licensing process in Indonesia. 

NIB is one of the main instruments in realizing this goal. The reason is it simplifies procedures and minimizes obstacles for business actors in licensing.

Regulation of the Head of the Investment Coordinating Board (BKPM)

This regulation regulates the technicalities and procedures for issuing NIB through the OSS.This ensures that the registration process is efficient and transparent.

Risks for Business Actors Who Don’t Have NIB

Why it is so important for you to know about how to make an NIB and fullfil it carefully? 

This is because your business will have to face a number of risks if it does not have, including: 

Legal Issues

Without NIB, your business doesn’t have official permission to operate and may should face some legal problems.

It may including sanctions from the government or even closure of the business by the authorities.

Difficulty in Accessing Public Services

NIB is generally a requirement to access a number of public services, such as banking, product registration, and permit applications. 

Without NIB, you will have difficulty accessing this service, which can hinder the development of your business.

Limitations in Seeking Financing

Banks and financial institutions usually also require NIB as one of the documents for companies to apply for credit.

If you don’t have it, then the opportunities to obtain financing to develop a business will be limited.

Reputational Loss

Businesses that are not registered or don’t have an NIB can be considered unprofessional by customers, business partners and investors.

This can damage your business reputation and reduce public trust in the products or services you offer.

Difficulty in Managing Taxes

NIB is required for proper tax management. Without it, you may experience difficulties in meeting your tax obligations. 

This could expose you to fines or penalties from the tax authorities.

Benefits of NIB

Your efforts to know how to make an NIB will not be wasted. The reason is, having an NIB will provide many benefits, including: 

Business Legality

NIB is official proof that a business has been registered and has permission to operate. So, you can avoid legal problems related to unregistered business.

Ease of Permission Access

Having an NIB will make it easier for you to apply for various additional permits that may needed. 

For example: environmental permits and other business permits.

Access to Financing

With clear legality as evidenced by NIB ownership, financial institutions will be more confident in providing financial support to you.

So, you will most likely find it easier to get a loan or credit from a banks. 

Product and Brand Registration

Business actors can legally register their products and brands, thereby getting legal protection from copyright and trademark violations.

Supporting Government Policy

By registering a business and obtaining an NIB, you contribute to recording economic data. It is used by the government for better planning and policies.

Increasing Competitiveness

Businesses that have NIB tend to be more trusted by consumers and business partners. So, they can increase their competitiveness in the market.

How to Make an NIB and What are the Requirements

There are several steps and requirements on how to make an NIB that you need to fullfil, namely: 

Prepare Supporting Documents

Before starting the NIB creation process, business actors must prepare the necessary documents, such as:

• KTP (ID card) of the business owner or manager
• NPWP (Taxpayer Identification Number) for individuals or business entities
• Deed of company establishment (for legal entities)
• Other documents required according to the type of business

Register with OSS

So, how to make an NIB through OSS? You just need to visit the official OSS website at oss.go.id first. 

If you don’t have an account yet, you’ll need to create one by filling out an e-form. After that, verify your account via registered email.

Fill in Business Data

After the account is verified, log in to the OSS account and select the NIB registration menu.

Fill in the form provided with complete data regarding the business, including business type, location and owner information.

Upload Documents

Upload all supporting documents that have been prepared previously according to system requests. Make sure all documents are in the appropriate format and clear.

Wait for the Verification Process

After all data and documents are filled in and uploaded, wait for the verification process from the OSS system.

If all conditions and requirements are completed, NIB will be issued automatically.

Take NIB

After the NIB is issued, business actors can download and print the NIB via their OSS account.

Make sure to keep the NIB properly, because this is proof of the legality of the business.

So, you’re no longer confused about how to make an NIB, right? Start Now will also be happy to help you with this.