START NOW – Equipping business activities with adequate licenses is certainly a must. For that, you will need to pay a certain amount of business license processing fee. 

You better find out the range of business license processing fee so that you can allocate them appropriately.

An Overview of Existing Business Categories in Indonesia

Before discussing about business license processing fee, it is better for you to know first about business categories in Indonesia.  

In addition to large companies, there are three types of businesses which is currently increasingly found in the country, namely:

Micro Business

Micro business is productive businesses held by individuals or business institutions with assets about Rp50million to Rp300million.

These criteria is recorded in the Law number 20 in 2008. 

Small Business

Based on the same law, small business’s assets are around Rp50million to Rp300million, for turnover is Rp300million to Rp2.5billion.

Medium Business

Businesses that fall into this category must have assets  about Rp500million to Rp10billion. In addition, the turnover held is IDR2.5billion to IDR50billion.

These three types of businesses are often abbreviated as MSMEs. Many says that they are pillars of the economy that have enormous advantages over companies.

The Requirements for Business License Processing

In addition to business license processing fee, you will also need to complete some requirements, such as: 

• A photocopy of the incorporation document.
• Copy of certificate of legalization from the Ministry of Law and Human Rights.
• A certificate for domicile from the company.
• A photocopy of your Tax Identification Number or NPWP (Nomor Pokok Wajib Pajak)
• Copy of the identity card of the person in charge.
• KK (Kartu Keluarga) of family card of the person in charge of the company.
• Color photo of the person in charge with size 3×4, provide three sheets.

The Components of Business License Processing Fee

If you’re using a notary, the business license processing fees may be required for the following things: 

• The cost of obtaining a business license that must be prepared is IDR4million.
• If the owner has an underlying fund of under one billion rupiah.
• For owners who have funds above Rp10billion, the license fee that must be prepared is Rp6million.
• For the specified rate, which is 30 days of work, the money to be spent is Rp10million.
• Meanwhile, the rate for notarial deeds is Rp3million.
• For SIUP processing is IDR2million.
• The fee for creating a PT PMA is IDR35million.

For additional information, the amount of the business license processing fee may vary depending on the type of license.

The Steps of Making Business Licenses 

Now that you know the range of business license processing fees and requirements, you need to look at the steps. 

As you know, business licenses are issued by authorized officials, namely village officials in the kelurahan. To get it, the requirement steps for licensing are:

Apply for RT and RW cover letter

Before going to the urban village, you must go to the RT (neighborhood association) secretary. There, you can request for a business license called SKU. 

SKU stands for Surat Keterangan Usaha (Certificate of Business). It functions as a proof of legality of a business activity in a region. 

To obtain it, you will be asked about the purpose and objective of making the license by the RT secretary.  

After the document has been filled in by the secretary, you can asks for a signature from the RT’s head. 

After that, go to the RW (the next neighborhood association) to get a stamp and signature from the RW’s head. 

Once everything completed, then go and bring those documents to the urban village for the next process of obtaining license. 

Please note that a business certificate is made as a statement that the applicant is a resident of the neighborhood. 

The purpose of the certificate is to apply for a business license or capital loan.

Prepare identity card and family card

To obtain a business license, you also need to prepare your identity card. It is a proof that you are a resident of the neighborhood. 

Usually, the most important part of it is the population identification number or NIK (Nomor Induk Kependudukan). 

This identity card will be useful in filling in data by the kelurahan. If so, the officer will also ask about the family member card.

Attach two pieces of 4×6 (close up) photos

Don’t forget to include the best close-up photo of the applicant. The required size is 4×6 cm as many as two sheets. 

This photo is for the village’s data and will be embedded in the cover letter issued by the village.

Coming to the Kelurahan Office

After you received the documents from the RT and RW,bring it together and go to the urban village office. 

When you are at the urban village office, you will be asked to fill in the business certificate form. 

You must fill in the data completely, if so, immediately submit it to the kelurahan officer and without any charge.

Getting to the Sub-district Office

If the business license has been completed, then rush to the sub-district office to get a signature.

After receiving a signature from the sub-district, the business license has been completed. For this letter (SKU), there is a validity period of one year.

For your information, this kind of business license will be charged if the business has grown and earned some income. 

Meanwhile, if you are just starting a new business, then the amount of this business license processing fee is free. 

You can consider carrying out the license application procedure yourself or use the services of a bureau.

In addition, there is also a third option, which is to register a business license online. You can do it through the OSS website. 

If you want to use a bureau, then you will also need to prepare a number of additional service fees. 

That’s why it is important to know the range of business license processing fees. It will bring you a benchmark to assess the bureau’s fee.