Trading Company Indonesia: Why Open It in Semarang and How

Trading Company Indonesia: Why Open It in Semarang and How

  • InCorp Editorial Team
  • 12 September 2023
  • 4 reading time

As the largest city and capital of Central Java, Semarang is now regarded as one of the best places to start a trading company in Indonesia. According to the central government, they aim to boost Central Java’s Regional Product per Capita (PDRB) to 7% by 2023 with a total investment of IDR 774 trillion.

Company Types for Trading Company in Indonesia

You need to know the available types of trading companies and its trading regulaitons in Indonesia before you can establish one. There are four major types: a limited liability company, a cooperative company, a limited partnership or firm, and an individual company.

Each type of legal entity needs a different set of trading documentations in Indonesia for its registration:

1. Limited Liability Company

  • The decree regarding the legal status of the company
  • Applicant’s statement about the business location
  • Tax registration number NPWP
  • Domicile letter
  • Two photos of director or person-in-charge
  • A copy of the director’s or person-in-charge’s identity card

2. Limited Partnership (CV) or Firm

  • Decree regarding the legal status of the company
  • Domicile letter
  • Tax registration number NPWP
  • A copy of the deed of establishment
  • Two photos of the business owner, manager, or person-in-charge
  • A copy of the owner’s, manager’s, or person-in-charge’s identity card

Read more: Business License in Indonesia: Risk-Based Classification Approach

3. Cooperative Company

  • The decree regarding the legal status of the company
  • Applicant’s statement about the business location
  • Tax registration number NPWP
  • Domicile letter
  • Two photos of director or person-in-charge
  • A copy of the director’s or person-in-charge’s identity card

4. Individual Company

  • Applicant’s statement about the business location
  • A copy of the owner’s, or person-in-charge’s identity card
  • Two photos of the business owner or person-in-charge

Read more: Permanent Business License: What You Need to Know about It

Required Business Licenses for Trading Company in Indonesia

You will need to have a trading license in Indonesia, or SIUP, before you can establish a trading company in Indonesia. There are four kinds of trading companies in Indonesia and each type of them requires a different SIUP.

1. Micro SIUP (SIUP Mikro)

This license is compulsory for micro-businesses with a net worth of no more than US$3,560 (IDR 50 million). This amount doesn’t include the company’s buildings and lands. This type of company has to be a sole proprietorship or partnership and the owners or its family and relatives are in charge of managing all its business activities.

2. Small SIUP (SIUP Kecil)

A small SIUP license is designed for small businesses in Indonesia. These small businesses have a net worth of more than US$3,560 (IDR 50 million) but less than US$35,606 (IDR 500 million) and this amount does not include buildings and lands as well.

3. Medium SIUP (SIUP Menengah)

The license for medium businesses is known as medium SIUP or SIUP Menengah. Companies with this license shall have a net worth of more than US$35,606 (IDR 500 million) but less than US$712,125 (IDR 10 billion) with the exclusion of lands and buildings.

4. Large SIUP (SIUP Besar)

As for large trading companies, they need a Large SIUP or SIUP Besar. These large companies must have a net worth of more than US$712,125 (IDR 10 billion) with the exclusion of lands and buildings.

Read more: 45 Additional Business Fields No Longer Have to Apply for Additional License

Start Your Trading Company in Indonesia with InCorp

InCorp can provide you with a precise and clear picture of how to start a trading company in Indonesia. Our team of experts is skilled in offering a complete package of business solutions regarding your company formation in Semarang and across the country.

Through our wide network and reputation, we assist investors in opening corporate bank accounts and applying for required licenses, as well as step-by-step guidance to tackle the immigration process for work permits and visas.

Our clients range from foreign investors, business owners, individual venture capitalists, and aspiring start-up entrepreneurs who need assistance in navigating specific regulatory processes and governmental policies.
Our wealth of experience enables us to simplify the complex procedure and make the process much easier for you.

Contact InCorp to set up your trading company in Indonesia. Fill in the form below for more information.

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Get in touch with us.

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Frequent Asked Questions

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.