How the OSS System Speeds Up Company Registration in Indonesia
Many foreigners would like to register their companies with the Indonesian government to abide by local laws and regulations. But one problem they encountered so far is the slow pace of company registration. The good news is that Indonesia now has the OSS System which may speed up company registration in the country.
What is OSS?
OSS stands for “Online Single Submission”. It is believed that the OSS System will ease the bureaucratic steps so that company registration can be done online. This does away with multiple visits to different government agencies which is a relief to foreign investors.
Once the OSS System is fully deployed in the country, foreigners will find their application for business licenses less problematic. It will be easier, faster and remove the risk of getting entangled in bureaucratic processes.
OSS Does Not Remove Other Government Requirements
The OSS is not a “cure-all” solution that will eliminate government requirements for foreigners and their businesses. Companies that will be doing business in different business sectors will still have to contend with other government requirements.
For example, you will still have to apply for certain business licenses if your business intends to operate in:
- Production and distribution of medical devices
This means you are not exempted from those requirements. Other companies that choose to operate in other business sectors may have to follow other applicable requirements.
This does create a problem for foreign investors because only one phase (Company Registration) is eased by the OSS. When investors move on to the next phases of business formation, the government agencies may have “bottlenecks”. This means there will be much competition for attention from those agencies in processing business requirements. The queue grows longer and realistically there will be delays. Time, that precious resource in business, will go against the business interests of investors.
Not surprisingly, this may affect investor enthusiasm for venturing into the Indonesian business sector. Investors may prefer to do business in more investment-friendly countries then.
Steps for OSS System Company Registration
If you do seriously intend to do business in Indonesia, these are the government requirements you need to comply with:
- Submission of Preferred Company Name
- Notarization of Article of Association through Deed of Incorporation
- Approval of the Company as a Legal Entity through the Ministry of Law and Human Rights
- Issuance of Tax Registration Number (otherwise known as NPWP)
- Granting of Domicile Licence
- Submission of Company to OSS System as Legal Entity with specific Business Identification Number (NIB), Business Licence and Location Permit, and other appropriate operational or commercial licences.
The OSS system is a step in the right direction for the Indonesian government as they try to accommodate investors. There may still be bureaucratic red tape to contend with in other government agencies though. This means foreign investors would do well to comply promptly with government requirements to avoid delays.
If you would like to know more about acquiring an Indonesian business license, try to contact us at 3E Accounting services. We can help you with your incorporation problems. We can also give assistance in other business needs such as accounting, auditing and even taxation services and other requirements. Remember, you can always consult 3E Accounting as you attempt to venture further into the Indonesian market.