Trade Business License and Easy Ways to Make it

When you decide to enter the business world and start your own business, there are several things you need to prepare besides capital. One of the most important things is having a trading business license or often referred to as a Trade Business License (SIUP).

Trade licenses are divided into several categories, including small, medium, and large businesses. So, what do you need to prepare to make it? Let's look at the information in this article.

Functions of a Trade Business License

One of the mandatory documents in the legality of a business is the ownership of a trading business license. This letter has a number of functions that are beneficial, especially for business actors. These include:

1. Legal Proof of Ownership of a Business

2. Avoiding Various Licensing Problems

3. Streamlining Trade Affairs, Both Exports, and Imports

4. One of the Mandatory Requirements When Participating in Auctions or Events Held by the Government

5. Attracting Investors With Complete Permits

Category of Trade Business License

Trade business licenses are divided into 3 categories, namely micro or small, medium, and large or macro. You can see the full explanation in the following description.

1. Small Trade Business License

This first trading business license is intended for businesses that have paid-up capital and a total net worth of up to Rp200,000,000. This nominal is excluding the value of the land or building where the business is established.

2. Medium Trading Business License

The second trading business license is intended for businesses that have paid-up capital and a total net worth of between Rp. 200,000,000 to Rp. 500,000,000. Similar to the small trading business license, in the following letter the estimated nominal does not include the value of the land or building where the business is established.

3. Large Trading Business License

Finally, a large trading business license is intended for business owners with paid-in capital and a total net worth of more than Rp. 500,000,000. For this third category of business license, the value of the land or building where the business is located is not included in the estimated price.

Conditions for Managing a Trade Permit

In the management process, the requirements for applying for a trading business license are distinguished depending on the type of company. So, so you don't get confused, let's look at the requirements of each institution or company.

Limited Liability Company (PT)

The requirements that you must fulfill to obtain a trading business license for a Limited Liability Company (PT) are:

1. Complete the Application Form

2. Photocopy of the Deed of Establishment of the Company from a Notary

3. Photocopy of Decision Letter on Legal Entity Ratification from Authorized Institution

4. Photocopy of Business Place Permit (SITU)

5. Photocopy of ID card of the owner or person in charge of the company

6. Photocopy of Disturbance Permit (HO)

7. Copy of Company TIN

8. Photocopy of Technical Permit from SKPD

9. Company's Initial Balance

10. Photocopy of Director's Family Card

11. Photograph of the Owner or Person in Charge of the Company, Color Size 4x6 A total of 3 sheets

12. If the place of business is not self-owned, it is mandatory to include a statement letter of no objection with a stamp from the owner of the land or building. You can also attach proof of original land or building rental and its photocopy

13. Power of Attorney When Submitted by a Third Party

14. Stamp Rp 6,000 A total of 3 sheets

Cooperative Legal Entity Company

The requirements for making a trading business license for a company that is a cooperative legal entity are:

1. Complete the Application Form

2. Photocopy of the Cooperative Establishment Deed Legalized by the Cooperative Service

3. The composition of the current management that has been approved by the Cooperative Service

4. Copy of Cooperative TIN

5. Photocopy of ID card of the owner or person in charge of the cooperative

6. Copy of Last RAT

7. Photocopy of Nuisance Permit (HO) along with the original sheet

8. Photocopy of Legalized Business Place Ownership

9. Photograph of the Owner or Person in Charge of the Company, Color Size 4x6 A total of 3 sheets

10. If the place of business is not self-owned, then it is mandatory to include a statement letter of no objection with a stamp from the owner of the land or building. You can also attach proof of original land or building rental and its photocopy

11. Power of Attorney When Submitted by a Third Party

12. Stamp of IDR 6,000 for 3 sheets

Companies that are legal entities CV/Firm

The requirements for making a trading business license for a company that is a CV/Firma legal entity are:

1. Complete the Application Form

2. Photocopy of the Deed of Establishment of a CV/Firm Company that has been Legalized by the District Court

3. Copy of TIN CV/Firma

4. Photocopy of ID card of the owner or person in charge of the CV/firm

5. Technical Permit Letter from the Authorized Institution

6. Photocopy of Disturbance Permit (HO) along with the original sheet

7. Photocopy of Legalized Business Place Ownership

8. Photograph of the Owner or Person in Charge of the Company, Color Size 4x6 A total of 3 sheets

9. If the place of business is not self-owned, it is mandatory to include a statement letter of no objection with a stamp from the owner of the land or building. You can also attach proof of original land or building rental and its photocopy

10. Power of Attorney When Submitted by a Third Party

11. Stamp Rp 6,000 A total of 3 sheets

Trade Business or Individual

The requirements for making a trading business license for a trading business or individual are as follows.

1. Complete the Application Form

2. Photocopy of ID card of Trade Business Owner

3. Photocopy of Nuisance Permit (HO) along with the original sheet

4. Copy of TIN

5. Photocopy of KK (Family Card)

6. Technical Permit from Authorized Institution

7. Photocopy of Legalized Business Place Ownership

8. If the place of business is not self-owned, then it is mandatory to include a statement letter of no objection with a stamp from the owner of the land or building. You can also attach proof of original land or building rental and its photocopy

9. Power of Attorney When Submitted by a Third Party

10. Photograph of the Owner or Person in Charge of the Company, Colored Size 4x6 3 pieces

11. Stamp Rp 6,000 A total of 3 sheets

SIUP Branch

The requirements for making a branch trading business license (SIUP) are:

1. Complete the Application Form

2. Photocopy of Legalized Branch Establishment Deed

3. Photocopy of ID card of the owner or person in charge of the business

4. Photocopy showing Proof of Appointment as Responsible Branch

5. Photocopy of SIUP from Head Office

6. Photocopy of Disturbance Permit (HO) along with the original sheet

7. Power of Attorney When Submitted by a Third Party

8. Photocopy of Legalized Business Place Ownership

9. If the place of business is not self-owned, it is mandatory to include a statement letter of no objection with a stamp from the owner of the land or building. You can also attach proof of original land or building rental and its photocopy

10. Photograph of the Owner or Person in Charge of the Company, Colored Size 4x6 3 pieces

11. Stamp Rp 6,000 A total of 3 sheets

Procedure for Submitting a Trade Permit

You can make a Trade Business Permit (SIUP) at the Office of Industry and Trade in Level II Regions or at the level of the Regency or Local Municipality.

Even so, if the city or district where you live is already equipped with an integrated service unit, you can immediately process it there including with other permits. The stages of submission are as follows.

1. Business actors or owners take care of themselves through a power of attorney authorized to the local Industry and Trade Office related to managing permits.

2. Next, you can immediately take the available registration form and fill out the SIUP/PDP form with a stamp duty of Rp. 6,000 signed by the business actor.

3. The completed form is then photocopied in 2 copies

4. Complete other requirements, namely:

Photocopy of the deed of the founder of the business or legal entity 3 pieces

Photocopy of ID card of business founder 3 pieces

3 copies of TIN

• Photocopy of HO (nuisance permit) 3 pieces
• Company balance sheet 3 sheets
• A map of the location of the place of business

As additional information, the fees charged for making a trade permit depend on the policies of each region. Therefore, it is likely that the costs set are different in each region.

Example of a Trade Business License

The format of a trade business license may vary depending on the policies of each city or district. However, the example below can be an illustration for you regarding the format for writing a business license.

Image Source: kupastibisa.com

Sobat BFI, that's the explanation regarding the Trade Business License and the Easy Way to Make it. Make sure to follow the procedures listed above so that the process of making your business license goes smoothly.

Finally, make sure to always comply with applicable laws so that your business avoids unwanted things.

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