How to Start a Trading Company in Indonesia: A 5-Step Guide

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Trading companies play an important role in Indonesia’s economy.

They help distribute goods from producers to consumers, enhance product quality and competitiveness in global markets, and support micro, small, and medium enterprises (MSMEs) in reaching international customers.

Given these benefits, trading companies are considered one of the most valuable types of businesses, including in Indonesia.

However, if you are planning to start a trading company in Indonesia, there are several key factors you need to consider, such as market dynamics, legal regulations, and more.

So, how to start a trading company in Indonesia? Find the answers below!

Read more:

Property Ownership Laws for Expatriates in Indonesia

What Is a Trading Company?

Before starting a trading company, it’s important to first understand what a trading company is.

A trading company or mercantile company, is a business that buys and sells goods either within a local area or across international markets to generate profit.

The typical workflow involves purchasing goods from a manufacturer or supplier in one country and selling them to customers or companies in another country.

In short, trading companies play a significant role as intermediaries between manufacturers and customers.

They also facilitate international business transactions, making buying and selling activities more efficient and accessible.

Step-by-Step: How to Start Trading Company In Indonesia

Source: Freepik.com/Freepik

How to Start a Trading Company in Indonesia?

Starting a trading company in Indonesia is not a simple process, but it’s definitely possible with the right preparation.

Here’s a step-by-step guide to help you get started.

1. Choose your Company Type

The first step is to choose the type of company you want to register.

Do you want to focus on local trading, importing, exporting, or all of them?

In addition, you need to decide on the product you want to sell.

At this stage, it’s important to ensure that the product is legally permitted and has sufficient market demand.

2. Form a Business Entity and Register

There are several types of business entities you can choose from, such as Perseroan Terbatas (PT), CV (Commanditaire Vennootschap), Firma, or Perusahaan Perseorangan (Sole Proprietorship).

To register your company, you need to prepare the following information:

• Company name
• Company domicile
• Company objectives or business purposes
• NPWP (Tax Identification Number) of the founders and the company
• SKDU (Surat Keterangan Domisili Usaha) or business domicile certificate
• Legal identification documents of the founders, such as ID cards
• Business licensing through the OSS (Online Single Submission) system.

3. Register Your Company In the Ministry of Law and Human Rights

If you choose to establish a PT, have the deed of incorporation prepared by a notary.

After that, register the deed with the Ministry of Law and Human Rights.

This step is necessary to obtain legal entity approval.

4. Apply for Export Import Permit

Don’t forget to apply for export-import permits, if applicable.

Here are the documents you need to prepare:

• General import license (API)
• Certificates (such as BPOM, SNI, halal, and others)
• Customs Identification Number (NIK) from the Customs Office.

5. Preparing Infrastructure 

Have you successfully registered your trading company? Now it’s time to prepare your infrastructure.

Infrastructure includes your office, warehouse, and logistics systems.

Choosing a strategic location is essential, as it improves accessibility for distribution and logistics while enabling faster and more responsive service to customers.

Moreover, it can help reduce transportation costs, storage expenses, and delivery times.

In addition, location plays a crucial role in supporting business growth.

It allows companies to build strong networks with suppliers, distributors, and potential customers, as strategic areas are often situated near business and industrial centers.

Are you looking for an office in a strategic location?

In this case, you might consider Taman Tekno X BSD City.

Taman Tekno X BSD City offers office spaces combined with warehouses in one place. 

It is also close to several key infrastructures, helping your business to grow.

***Header: Freepik.com/Benzoix