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tarting a small business in Indonesia doesn’t have to be complicated. A sole proprietorship, known as Usaha Perseorangan, is one of the simplest business structures available.
This guide will walk you through practical steps for legally setting up your sole proprietorship.
What is a Sole Proprietorship?
A sole proprietorship is a business entity owned and operated by one individual without legal distinction between the owner and the business.
Why Choose a Sole Proprietorship?
Steps to Establish a Sole Proprietorship in Indonesia
1. Prepare Your Business Plan
Even a simple business requires a basic business plan covering your product, target market, and financial goals.
2. Obtain a Taxpayer Identification Number (NPWP)
Register online at DJP webpage. An NPWP is essential for tax compliance and banking.
3. Register Your Business Name
Though not mandatory, registering your brand with DJKI helps protect your business identity.
4. Obtain a Business License (NIB)
Register through the Online Single Submission (OSS) system (https://oss.go.id) for legal business operation.
5. Set Up a Business Bank Account
Separating business and personal finances simplifies bookkeeping and enhances credibility.
Important Documents Needed:
Common Mistakes to Avoid:
Benefits of Legalizing Your Sole Proprietorship:
Conclusion
Establishing a sole proprietorship in Indonesia is simple if you follow proper legal steps. For professional assistance, the AUFAR & Co Law Office team is ready to support you.
