NIB – Business Identification Number for your Business – The government has changed the licensing system in Indonesia, which was inaugurated several years ago. This change has had a significant impact on the business licensing process. Submissions are only made on one platform, namely the Online Single Submission (OSS). With this system, business licensing is based on the level of business risk. The meaning of risk is the potential for injury or loss from a hazard or a combination of the possibilities and consequences of hazards. Determination of the risk level is based on the results of the analysis.
And below we are present! In this article we will discuss getting to know the NIB license which has a major function and role in business.
What is NIB?
Business Identification Number, hereinafter abbreviated as NIB, is proof of registration/registration of Business People to carry out business activities and as an identity for Business People in carrying out their business activities.
Where to get NIB?
You can get Business Identification Number (NIB) online through the OSS (Electronic Integrated Business Licensing System) website.
What are the functions of NIB?
- As a form of business identity
- As an import identification number
- As a right of access to customs
- As a registration of Business People participation for social, health security and social security for employment
- As a mandatory employment report for the first period of Business People.
What are the Risk Levels in NIB?
In the OSS RBA system, an assessment of the level of danger, assessment of the potential for danger, level of risk, and ranking of the scale of business activities is carried out, business activities are classified into:
1. Low Risk
Low Risk Business Activities. For Low Risk scale activities carried out by Micro and Small Enterprises (UMK), the NIB applies as a single permit and does not require any additional permits.
2. Medium Low Risk
Business Activities with Medium Low Risk Level, Business People are required to have a Business Identification Number (NIB) and Standard Certificate. The Standard Certificate as referred to is the legality to carry out business activities in the form of requirements for business people to meet business standards in order to carry out business activities provided through the OSS system.
3. Medium High Risk
Business Activities with Medium High Risk Level, Business People are required to have a Business Identification Number (NIB) and Standard Certificate. NIB and Standard Certificate are Business Permits for Business People to carry out operational and/or commercial business activities.
4. High Risk
Business People are required to have a Business Identification Number (NIB) and a Permit. Requirements for issuing a Permit, fulfillment of requirements including the Environmental Feasibility Decree and NIB as well as the Permit as a business permit applies to the operational and commercial stages.
Business activities with a High Risk level have standard requirements for implementing business activities that require verification, the Central Government or Regional Government according to their respective authorities to issue a Standard Certificate based on the results of verification of compliance with business activity implementation standards.
How many types of NIB?
Company NIB
Intended for business entities in the form of legal entities or non-individual business entities, such as Limited Liability Companies (PT), Commanditaire Vennootschap (CV), Firms, and cooperatives.
UMKM NIB
Intended to facilitate business people in the micro, small, and medium categories.
Individual NIB
Intended for individual or private business people.
Does NIB also serve as a domicile?
NIB replaces the domicile certificate. NIB will contain some information about the company, including the company address.
But what needs to be remembered is that the domicile in the NIB is the one stated in the articles of association which is also the domicile of the head office. Meanwhile, branch offices do not need to have their own NIB.
Does the SIUP not need to be extended? because it already has a NIB.
With the enactment of PP 5/2021, SIUP has become part of the business licensing of the trade sector. In the case of business activities in the trade sector included in the low risk level, NIB becomes the legality to carry out business activities without the need to have a SIUP. Thus, if the SIUP of a business actor has expired, what needs to be done is to submit an application to obtain a business license according to the risk level of the business activity.
How long is the NIB period?
NIB will be valid as long as the business is carried out in accordance with applicable laws and regulations. NIB will be revoked and will not be valid if the NIB is not valid in accordance with the provisions that have been determined.
Does NIB also apply as TDP?
NIB also applies as Company Registration Certificate (TDP), Import Identification Number (API) if needed, and Customs Access Rights (NIK) if needed.
Conclusion
The implementation of this business licensing aims to increase investment for business people and facilitate business activities through the implementation of more effective and simple business licensing issuance and transparent, structured and accountable supervision of business activities in accordance with statutory provisions.
Don’t understand the flow of the NIB application process?
Indoservice, a secretarial and licensing services consulting company firm that can assist you in establishing a company in Indonesia and business-related licensing. Trusted and experienced in Indonesia, committed to providing the best and fast service to meet your needs.
Our consultants will assist you in the process of establishing a company and obtaining permits related to your company’s business in Indonesia. Contact us now for special offers at +62877-1449-8500 or admin@indoservice.co.id.
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