I have a foreign language course business that has been running for almost 2 years. However, my business does not yet have adequate legality. How do I proceed to get one? How can I get business license in Indonesia?
Daftar Isi
INTISARI JAWABAN
Foreign language course institutions are included in one of the types of education units recognized in law, namely non-formal education units. For legality, you need to apply for a Business Identification Number, which is obtained through the OSS system and also apply for an establishment permit from the Head of the District/City Education Office.
Please read the review below for a further explanation.
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Course Institution as a Nonformal Education Unit
According to Article 1 number 10 Law 20/2003, an educational unit means any educational service group providing formal, non-formal, and informal education at every level and type of education.
Furthermore, a non-formal education means any educational pathway outside formal education which can be implemented in a structured and tiered manner.[1] In accordance with Article 102 section (1) Government Regulation 17/2010, non-formal education functions:
as a substitute, supplement, and/or complement to formal education or as an educational alternative; and
develop learners' potential with an emphasis on mastering functional knowledge and skills, as well as developing professional attitudes and personalities in order to support lifelong education.
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Education units that organize non-formal education include:[2]
Course institutions and training institutions;
Study groups;
Community learning activity centers;
Majelis taklim (a place to carry out the teaching of Islam); and
Non-formal early childhood education.
Furthermore, Article 1 number 4 Regulation of the Minister of Education and Culture 81/2013 states that a Course and Training Institution is a non-formal education unit organized for people who need the provision of knowledge, skills, life skills, and attitudes to develop themselves, develop a profession, work, independent business, and/or continue their education to a higher level.
Establishment Permit for Foreign Language Course Institution
Course and Training Institution (in Bahasa Indonesia is known as Lembaga Kursus dan Pelatihan), which in its daily activities organizes foreign language education, is one form of non-formal education unit that can be established by individuals, groups of people, and/or legal entities.[3]
If you are interested in organizing your Course and Training Institution with a legal entity, the options available are namely a Foundation, Cooperative, or Limited Liability Company ("LLC"). For Course and Training Institutions that are established solely for profit, there is certainly no harm in considering LLC as the preferred vehicle.
One of the advantages of an LLC is that the responsibility of shareholders is limited to their paid-up capital. So that if the LLC experiences a loss, the personal assets of the shareholders remain safe.
After choosing a business form, you can proceed to the stage of applying for a license to establish a non-formal education unit by submitting a letter of application for the establishment and attaching technical and administrative requirements to the Head of the District/City Education Office.[4]
composition of the management and details of duties;
if the founder is a legal entity, then attach a Letter of Determination of Legal Entity from the Ministry in the field of Law;
Certificate of domicile from the Head of Village;
Certificate of ownership or authorization to use the place of learning for 3 years.
While the technical requirements are in the form of an Education Unit Development Plan document with reference to the National Education Standards.[6] Later, the head of the agency will verify the administrative and technical files.[7]
Based on Easybiz's experience, verification of the correctness of all administrative and technical files is carried out by conducting a survey after the required documents are declared complete. Then, the parties who conduct the survey of the non-formal education unit you operate are the One-Stop Investment and Integrated Services Office and the local Education Office.
After the survey is completed and there are no required documents that need to be corrected, the establishment permit for the non-formal education unit you are applying for will be issued. This permit is valid for as long as the foreign language course you are running is still operating and has not changed.
Course Institutions Must Have Business Identification Number
Not only that, you also need to look at the Decree of the Secretary General of Education, Culture, Research, and Technology 26/2021. Point 6 of the decree states that education providers organized by the community must have a Business Identification Number issued through the OSS system based on the provisions of laws and regulations before applying for a license.
In accordance with Article 1 number 12 Government Regulation 5/2021, Business Identification Number is proof of registration/registration of business actors to carry out business activities and as an identity for business actors in carrying out their business activities.
Then, the OSS system is an integrated electronic system managed and organized by the OSS Institution for the implementation of Risk-Based Business Licensing.[9]
Meanwhile, the OSS Institution is a government agency that organizes government affairs in the field of investment coordination.[10]
This means that you must ensure that the data on the identity card, Taxpayer Identification Number, and Family Card of the Course and Training Institution management and founders are synchronized. Since the emergence of OSS, the business licensing system in Indonesia has integrated the data in the relevant Ministries/Institutions.
The Population Identification Number will be checked for validity through the system, as well as the Taxpayer Status Confirmation. If the Population Identification Number or Taxpayer Status Confirmation of the founders and management of the Course and Training Institution are declared invalid, the registration process to obtain the Business Identification Number cannot continue, so you cannot fulfill one of the requirements to apply for a non-formal education unit establishment permit.
If you have difficulties establishing a company and managing its licensing, please contact Easybiz at [email protected] for the best solution for legal and appropriate company establishment and business licensing.
These are the answers we can provide, we hope you will find them useful.