What License Is Needed To Have An Industrial Service Business
All companies who intend to operate in the industry business sector, peculiarly manufacturing in Indonesia, must first obtain the Industrial Business organization License (Izin Usaha Industri). Here are the four things you need to know in applying for the license.
The Industrial Business License, commonly known equally Izin Usaha Industri or "IUI" is mandatory for manufacturing companies who intend to start their operation in their respective industries. The IUI applies for enterprises and companies in all industry classifications: small, medium, and big industry. PMA Companies are classified as a large industry, which also has the obligation to obtain the license.
In applying for Industrial Business organization License, the visitor must be enlightened of the following interconnecting factors, which consists of:
- INDUSTRIAL SECTOR
Classification of Industrial Sector, and for PMA Companies, industrial product capacity, determines whether the industrial sector is immune to be run by personal industrialists, or a business entity, or must be in the grade of legal entity, such every bit past limited liability companies.
- INVESTMENT Structure AND MANPOWER
Pursuant to Minister of Industry Regulation No. 64/M-IND/Per/7/2016, the investment construction of a manufacturing company determines which classification it falls into: small-scale, medium, or large industry. The amount of manpower also determines the nomenclature.
For convenience, you can peruse the tabular array beneath to understand the classifications:
- LOCATION
Industrial Business License can only be issued if the industrial project location is situated in an industrial zone, or other zones specifically purposed for industrial activities.
For industrial activities that are conducted exterior an industrial zone, there is a hazard of not getting an Industrial Business License since some areas are prohibited for industrial activities. Therefore, it becomes important to ensure that your project location is immune for manufacture.
- LEGALITY OF DOCUMENTS
The required documents to apply for Industrial Business License are as follows:
- Deed of Establishment, Articles of Association, and its amendments, including the Approval from MOLHR (Minister of Law and Human being Rights);
- Identity Documents of Director and Commissioner;
- Taxation ID of Visitor;
- Building Permit (IMB), with the right Industrial Purpose;
- Domicile Letter of Company;
- Environmental Documents, such as AMDAL and UKL/UPL, or SPPL, pursuant to the environmental impacts resulting from the industrial activities and projection location;
- Ecology License;
- Nuisance Permit (Hindze Ordonantie);
- Factory Blueprints; and
- Industrial Business Process and Flowchart.
It is near important to ensure the legality of the to a higher place documents before submitting the license application. There are as well local requirements for each district/urban center where the Industrial projection is located, which may require additional documents.
HOW CAN SMART CONSULTING HELP You lot?
To ensure a smooth investment and business performance from the legal perspective, but also nonetheless focus on maintaining your business organization in Indonesia and accomplish your revenue target, it is advised for you lot to find capable and trusted lawyers or legal consultants for communication and assist in ensuring your legal compliance with prevailing industrial laws and regulations.
SMART Consulting is an Indonesian Corporate Legal Services firm. We have assisted local and multinational companies in treatment their industrial legal matters, including matters related to industrial business concern licenses and permits in compliance with the applicable laws and regulations.
Contact Us Now to go your legal solution for your business organisation goals, and still comply with the prevailing laws and regulations.
E: info@smartcolaw.com
H: +62821-1234-1235
What License Is Needed To Have An Industrial Service Business,
Source: https://smartcolaw.com/2017/02/14/4-things-you-need-to-know-in-applying-for-industrial-business-license-izin-usaha-industri/
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