3 Important Things to be Registered Agent or Distributor Company in Indonesia

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3 Important Things to be Registered Agent or Distributor Company in Indonesia

Agent or Distributor is one of the most important elements in the business process. The product will be difficult to reach the consumers if this element is missing. Therefore, because of the importance of agents or distributors’ role, in Indonesia, the Ministry of Trade obliges agents or distributors to be registered. It is stated in the Minister of Trade Regulation 11/2006 (Permendag 11/2006).

We summarize, at least, three (3) important things that you need to know, if you want to become a registered agent or distributor in the Ministry of Trade. These steps are as follows:

1.Understand the Nature of Your Company/Business

The first step is to understand the nature of the type of your business. At least, there are two things that you should really understand. Firstly, you should understand whether your company will be acting as agent or distributor, which is:

  • Agent is a trade national company that acts for and on behalf of Principal based on agreement exercising marketing activity without doing transfer of right on the physical of goods and/or services which owned/controlled by Principal who appointed it; and
  • Distributor is a trade national company that acts for and on behalf of itself based on agreement exercising activities such as purchasing, storing, selling, and marketing of goods and/or services.  By understanding it, you can optimally and efficiently prepare the documents required by the Minister of Trade Regulation 11/2006.

Secondly, you also have to understand the type of products or services that will be distributed, whether it is domestic or foreign products or services. There are significant differences of the requirements given by the Ministry of Trade between domestic and foreign products or services.

2. Requirements Document

Once you understood the type of business that you have created, and then you can start preparing the required documents subject your business activities, whether as Agent or Distributor Company.

The requirement documents are on the table below:

No

Requirement Documents

Agent or distributor of Foreign good and/or services

Agent or distributor of Domestic good and/or services

1 The agreement that has been certified by a Notary Public and a certificate from the Trade Attaché of the Republic of Indonesia or Official Representative Office of the Republic of Indonesia in the principal countries.

Note: You should also show the original agreement.

V

The original agreement and the agreement that have been certified by a Notary.

2 If the agreement is done by the principal supplier, the principal supplier is obliged to demonstrate the authority of the principal manufacturer.

V

N/A

3 Copy of valid Business Permit (SIUP).

V

V

4 Copy of valid Company Registration Permit (TDP).

V

V

5 Copy of valid General Import Identification Number (API-U), especially for distributor.

V

N/A

6 Copy of Deed of Company Establishment and / or Deed of Amendment that was approved by the competent authority.

V

V

7 Copy of legalization of legal entity from the Ministry of Law and Human Rights for limited corporation.

V

V

8 Especially for agents, you should make a statement which states that you do not do the acquisition and storage of goods that you will distribute.

V

V

9 The original leaflets / brochures / catalogs from the principal of the type of goods and / or services that you will distribute.

V

V

10 Copy of license or registration papers other than technical institution that still apply to certain types of goods in accordance with applicable regulations.

V

N/A

11 Copy of Letter of Permanent Business License / Letter of Approval from BKPM when the agreement is created with Foreign Investment Company (PMA) which is engaged in the distributor / wholesaler.

V

N/A

12 Copy of the Letter of Business License Company Foreign Trade Representative (SIUP3A) if the agreement is created with the Representative Office of Foreign Trade.

V

N/A

3. Apply for the registration

After the documents was prepared, then you can registering the Agent/Distributor License by way  submitted in written form to Director of Business Development and Corporate Registration (Direktur Bina Usaha dan Pendaftaran Perusahaan) the Ministry of Trade.[1] In addition, you also have to complete the application for registration by completing the “Daftar Isian Permohonan” that can be found in Appendix I of Permendag 11/2006.[2]

Last but not least, don’t forget, the application form should be signed by the Company’s director of the one who authorize for it.[3]

After submitting the application, you should wait for the request is processed. Direktur Bina Usaha dan Pendaftaran Perusahaan will issue Registration Certificate for Your Company no later than 5 working days from the receipt of the application for the registration.[4] If the application assessed incomplete, Direktur Bina Usaha dan Pendaftaran Perusahaan will submit the refusal in written form to you with the reasons for refusal not later than three (3) working days from the receipt of the request.[5]

LATIFAH K. / ASHARYANTO

How SMART Legal Consulting help you

SMART Legal Consulting is an Indonesian Corporate Legal Services firm. We have extensive experiences in assisting and submitting the licenses of Agent or Distributor Company in Indonesia.

If you have any question about legal aspect of Agent or Distributor or want to book a consultation for assistance, you can arrange a meeting with our SMART Legal Consulting at:

E: info@smartcolaw.com

H:+62821 1234 1235

[1] Article 6(1)
[2] Article 6(2)
[3] Pasal 6 (4)
[4] Article 7(1)
[5] Article 7(2)

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