Association Licensing Process – After discussing the definition, purposes and types of association in the previous article (Type of Association in Indonesia), we would like to share the licensing process of association as a Legal Entity. As we mentioned before, there is also non legal entity association.

As for this type of association, the licensing process is quite easy. This association can be formed by at least 2 people, and prepare its articles of association. The licensing process does not need to get official permission from the Ministry of Law and Human Rights. The applicant only needs to contact the Notary to obtain the deed of establishment and then his identity must be registered with the Ministry of Home Affairs.

As for Legal Entity Association the process are following:

1. Association Name Request, To get an association legal entity, the first thing to do is to submit the name of the association. An application for the use of the name of the association is submitted to the Ministry of Law and Human Rights through the Legal Entity Administration System (SABH), which has now been replaced with AHU Online, by filling in the format for submitting the name of the association, which at least contains:

a. Applicant’s identity;
b. The name of the Society ordered.

The requests for use of the name of the association can be made by the public or notary public. The name of the association that has been approved by the Minister is given an approval to use the name electronically, which at least includes:

a. Name order number;
b. The name of the association that can be used;
c. Order date;
d. Expiration date;
e. Payment Code.

The name of the Association which has been approved by the Minister is valid for a maximum period of 60 (sixty) days. Furthermore, the founders or their attorneys who have been given their respective authorities sign the deed of establishment in front of a public notary.

2. Request for Legalization of the Association’s Legal Entity, it should be understood in advance that if you see the rules in Article 1 number 3 Permenkumham 3/2016, then the applicant is a Notary who is given the power to submit the application for the legal entity of the association through AHU Online. The applicant is required to pay the application fee for the legal entity of the association through a perception bank of two hundred and fifty thousand rupiahs per application based on Government Regulation Number 45 of 2014 concerning Types and Rates of Non-Tax State Revenues Applicable to the Ministry of Law and Human Rights (PP 45 / 2014) as last amended by Government Regulation Number 45 of 2016 concerning Second Amendment to Government Regulation Number 45 of 2014 concerning Types and Rates of Non-Tax State Revenues Applicable to the Ministry of Law and Human Rights (PP 45/2016).

3. Requests for legalization of associations ‘legal entities are carried out by filling out the format of incorporation to obtain a Ministerial Decree concerning the legalization of associations’ legal entities. In addition to filling out the format of the establishment, it must also be accompanied by supporting documents that are submitted electronically and kept by a Notary, which includes:

a. A copy of the deed of establishment of the Association or a copy of the deed of amendment to the establishment of the Society known to the Notary in accordance with the original;
b. A statement of place of residence accompanied by the full address of the Society, which is signed by the management of the Association and is known by the local village head / village head or by other names;
c. Sources of funding for associations;
d. Association work program;
e. Declaration letter not in a management dispute or in a case in court;
f. Minutes of meeting of the establishment of the Society;
g. Statement of the ability of the founder to obtain a tax identification number card.

4. In addition to delivering the above documents, the applicant must also upload the deed of establishment of the Society. In the case that the format of the establishment of the association and supporting documents are in accordance with the provisions of the legislation, the Minister immediately states that he has no objection to the application for the legal entity’s association electronically.The Minister shall issue a Ministerial Decree concerning the legalization of the legal entity of the association electronically and submit it to the applicant within a period of no later than 14 (fourteen) days from the date of the objection statement from the Minister. The notary public can directly print the Minister’s Decree on the legalization of the legal entity of the association, using F4 / Folio size white paper weighing 80 (eighty) grams. The Ministerial Decree must be signed and affixed with a position stamp by a Notary Public and contains a phrase stating “This Ministerial Decree is printed from AHU Online”.

Association Licensing Timeline

Regarding the timeline, it is subject to the Minister gives approval for the use of the name of the association, also depends on how long the applicant submit an application for the legal entity of the association after obtaining approval for the use of the name of the association (within a period of 60 days according to Article 7 Permenkumham 13/2016), in addition, it also depends on how long the Minister has stated no objection to the application for legalization of the association’s legal entity.

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