The abundant of human resources in Indonesia seems to be a potential reason of why the industry of direct selling grows gradually. This is a selling method where the seller does face to face with the customer. As reported, the direct selling transaction has increased 10 percent from 2015 to 2016 which earned around USD 1.100 million. Surprisingly, in 2014, direct selling had involved more than 11 million direct sellers. Estimated to continue in growing, people can start to try this industry by following some steps in registering direct selling company in Indonesia.
Requirements for Direct Selling System
A company running for direct selling industry has to fulfill the following criteria:
- Has a permanent office with a clear address
- Sell the product or service through network marketing
- The company should own a distinct, transparent, and logic selling system
- The company has to obey the ethical code
- The goods meet the valid standardization
- Provide trusted information to the customer related to the quality
Registering Direct Selling Company
Register a direct selling company can be done through the easy steps to the Director of Business Development and Corporate Registration. The company can be officially operated since it achieves SIUPL as the license. There are two different types of the license, first is temporary and the second is permanent.
A new company will get a temporary license for about a year before changing it into permanent. The registration should be submitted 30 days before the temporary license expired. Then, if the company has achieved the permanent license, it should be updated for every five years. These are required documents should be provided by the applicants:
- Copy of managing director identity card or corporate responsibility
- Photograph of managing director size 4×5 cm (2 sheets)
- The marketing plan of the company
- Copy of contract cooperation
- Copy of deed of establishment form legal entity including the decision letter
- The identity of the company sold goods and service price, ethical code of the company, and company regulation
- Copy of registration license and technical permit
- Copy of registration license
- Copy of industrial business license
The steps of getting SIUPL for the company are not far different from the process when the license loss or if the company tend to expand the branch. The attached document is not as much as the registration. SIUPL categorized as invalid license if it meets the expired date and if the company halt the business activity. Fortunately, if you are too busy to do re-registration, a local company specialized in registering the company can handle it for you. Register the company through www.company-registration.co.id will save your time.
Also, after getting the SIUPL, the company is not allowed to break the rules that have been agreed on the license such as selling fake product or goods which are not registered before. Besides, the direct seller cannot force the buyer to buy the product. The consequences of that infringement are the SIUPL will be taken over by the ministry.
