The realization of building a company is a long process which needs to be followed step by step carefully. It is closely related to some documents or license which is essentially needed to gain a legal company, as one of them is permanent business license in Indonesia. Before the company is officially operated, it has to complete the process by owning this license, or it is commonly known as IUT.
Issued by Investment Coordinating Board (BKPM), each company should obtain a permanent business license as it is stated on the Head of BKPM Regulation No. 14 of 2015 on Guidelines and Procedures for Capital Investment Principle License.
Proper Time to Apply IUT
IUT is the last of long steps to make the company start the activities of operating, producing, and advertising. Before applying IUT, the company needs to accomplish other requirements such as principle license, SKDP, NPWP, and others. After BKPM processes it, the IUT will be issued within 6 active days.
The Importance of IUT
There are several reasons why this permanent business license become a crucial requirement for any foreign company that will be built in Indonesia. The fundamental background is to make it legal so that there will be no risk or problem soon after the company starts operating.
Also, by receiving this license, the company can employ workers coming from other countries. Not only employees, but the company also has the right to invite the shareholders to other directors. By enabling other parties to join in the company, the greater success will be possible to gain.
Steps to Apply IUT
To get the license successfully, there are some requirements and steps to follow.
- Meet the investment realization plan
The first qualification which should be fulfilled by the company is investment realization worth for more than IDR 10 billion. This is not included the investment for building and land. Otherwise, if there is more than one company, the number of investment should be multiplied as much as the total of the company. For instance, two companies want to register the business license, and then it should be IDR 20 billion in total.
- Fill out the application
As mentioned before, the permanent business license can be applied after finishing the principal license. Then, before principle license is getting expired, the application of IUT should be submitted soon. This rule refers to BKPM Regulation in article 13.
- Investment capital realization progress cannot be missed
During the process of applying IUT, this document or known as LKPM cannot be skipped. This can be a consideration for BKPM to determine whether the company capable of meeting the investment plan or not.
- Attachment of appointment or recommendation letter
This is not mandatory for the company to attach the letter. If the BKPM asks for the appointment or recommendation letter, then the company should attach it. This is a letter from the institution of government.
Applying permanent business license in Indonesia sometimes can be complicated if the rules and requirements are not carefully understood. To make it easier, you can directly ask for help from www.company-registration.co.id as the professional and trusted company to assist you to finish the process.