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Recently the Ministry of Trade issued Regulation number 8/M-DAG/PER/2/2017 on the Arrangement of the Company Registration (New Regulation). The Regulation is the second amendment of the Ministry of Trade Regulation number 37/M-DAG/PER/9/2007 (Regulation 2007). The Regulation aims to decrease the burden of businesses in the trading sector to register a Company Registration Certificate (TDP). In this column we discuss the impact of the new Regulation on businesses active in the trade sector.
Requirement to Obtain a Company Registration Certificate (TDP)
Regulation 2007 regulates that the following businesses must arrange their Company Registration Certificate (TDP):
- Limited Liability Companies (PT and PT PMA);
- Foreign Companies which have a branch or representative office in Indonesia;
- Other local companies, such as cooperatives, firms, individual enterprises and others.
The following companies are exempted from registering a Company Registration Certificate (TDP):
- Government agencies;
- Certain individual companies; or
- Certain non-profit organizations.
A Company Registration Certificate (TDP) is valid for a period of 5 years. Businesses must re-apply for the license three months prior to its expiration. The New Regulation sets new procedures for this re-application, which we discuss below.
Re-registration of a Company Registration Certificate (TDP)
The New Regulation regulates that for re-registration, companies only need to submit a notification letter to the local Company Registration Office (KPP).
The head of the Company Registration Office shall issue a new Company Registration Certificate (TDP), not later than three business days as of receipt of the notification. If no certificate is issued within this date, the old certificate shall remain valid and shall be automatically re-registered.
Previously, the Regulation 2007 stated that the re-registration process was subject to administration fees. Under the New Regulation now states that the re-registration process is free of any charges.
The New Regulation has been in force since February 22, 2017.
This column is provided by PNB Law Firm Jakarta