Procedures for Securing SIUP and TDP Redefined

The Minister of Trade(“Ministry”)has issued Regulation No. 14/M-DAG/PER/3/2016 (“Amendment”)on the Amendment to Ministerial Regulation No. 77/M-DAG/PER/12/2013 on the Simultaneous Issuance of Business Trade Licenses and Company Registration Certificates for Companies in the Trade Sector(“2013 Regulation”). [1] The Amendment simplifies procedures for newly established companies in the trade sector which are looking to secure Business Trade Licenses (Surat Izin Usaha Perdagangan–“SIUP”) and Company Registration Certificates (Tanda Daftar Perusahaan–“TDP”) at regional offices of the One-Stop Integrated Service (Pelayanan Terpadu Satu Pintu–“PTSP”) facility. [2] The Amendment is of relevance to all parties seeking to establish companies.Application FormsAs a general rule, before being allowed to engage in business activity, company in the trading sector must first secure both an SIUP and a TDP. [3] Applications for SIUP and TDP must be submitted by a company’s management, person in charge, or third parties to the PTSP. [4] The Appendix to the Amendment sets out a new type of form which must be used by the company when applying for an SIUP and a TDP.Previously, the application form for SIUPs was provided under Ministerial Regulation No. 36/M-DAG/PER/9/2007 on the Issuance of Business Trade Licenses. [5] Meanwhile, the application form for TDP was provided under Ministerial Regulation No. 37/M-DAG/PER/9/2007 on Company Registration. [6] Issuance of SIUP and TDPAs mentioned previously, newly established companies must apply for their SIUPs and TDPs simultaneously by submitting their applications to the regional level PTSP. Alternatively, a company may also request both an SIUP and a TDP through an electronic application system organized by the Minister. [7] Note that a company must also enclose several supporting documents with any application, dependent on the type of company listed in Article 4 of the 2013 Regulation, be they in the form of limited liability companies, cooperatives, Firma Partnerships, Limited Partnerships, or sole proprietorships.Upon receiving a completed application, officers at the PTSP must issue an SIUP and TDP within two days. However, if the application is considered incorrect and incomplete, then the officer at the PTSP in question will notify the relevant company of this within one day of taking receipt of an incomplete application. [8] Prior to the Amendment, the approval or refusal of SIUP and TDP applications by PTSP officers was sent to applicants within three days of a facility taking receipt of an application. [9] Moreover, the 2013 Regulation did not set out any provision on electronic applications for SIUPs and TDPs.The Amendment was issued on 2 March 2016._AP