Business License & Tax Registration
Registration and activation of Business Identification Number (NIB), Tax Identification Number (NPWP), Taxable Entrepreneur (PKP) status, and Coretax activation.
Every business operating in Indonesia needs three core registrations to legally trade: a Business Identification Number (NIB) to operate at all, a Tax Identification Number (NPWP) for tax reporting, and — once your revenue crosses the VAT threshold — Taxable Entrepreneur (PKP) status. MCS Consulting handles all three end-to-end, from your initial OSS account setup through to Coretax activation and ongoing e-Filing support.
On this page
What licenses does your business actually need?
Not every business needs every registration on day one. The table below shows what applies at each stage of your business.
NIB
- What it is
- Your primary business license and identification number
- Who needs it
- Every business entity, without exception
- Issued via
- OSS (Online Single Submission) system
- When to register
- Immediately after company establishment
- MCS Consulting handles
- OSS account setup, NIB RBA (risk-based) application
NPWP
- What it is
- Your company's tax identification number
- Who needs it
- Every business entity, without exception
- Issued via
- Directorate General of Taxes (DJP)
- When to register
- Immediately after company establishment
- MCS Consulting handles
- NPWP registration, Tax Registration Certificate
PKP
- What it is
- Taxable Entrepreneur status for VAT collection
- Who needs it
- Businesses exceeding the VAT revenue threshold (or opting in voluntarily)
- Issued via
- DJP, after NPWP is active
- When to register
- Once turnover crosses the threshold, or when needed for B2B credibility
- MCS Consulting handles
- PKP application, Taxable Entrepreneur Certificate, Coretax activation, e-Filing setup
| Feature | NIB | NPWP | PKP |
|---|---|---|---|
| What it is | Your primary business license and identification number | Your company's tax identification number | Taxable Entrepreneur status for VAT collection |
| Who needs it | Every business entity, without exception | Every business entity, without exception | Businesses exceeding the VAT revenue threshold (or opting in voluntarily) |
| Issued via | OSS (Online Single Submission) system | Directorate General of Taxes (DJP) | DJP, after NPWP is active |
| When to register | Immediately after company establishment | Immediately after company establishment | Once turnover crosses the threshold, or when needed for B2B credibility |
| MCS Consulting handles | OSS account setup, NIB RBA (risk-based) application | NPWP registration, Tax Registration Certificate | PKP application, Taxable Entrepreneur Certificate, Coretax activation, e-Filing setup |
NIB: Business Identification Number
Your NIB is issued through Indonesia's Online Single Submission (OSS) system and serves as your company's primary business license. It's required for every business entity — whether a sole proprietorship or a formally registered legal entity (PT, PT PMA, CV, etc.) — and functions as your import license and customs registration number where applicable.
What MCS Consulting handles for you:
- OSS account creation and setup
- NIB application for sole proprietorships and legal entities
- NIB RBA (Risk-Based Approach) processing — Indonesia's risk-tiered licensing system that determines which additional sector-specific permits your business needs based on its risk classification
NPWP: Tax Identification Number
Your NPWP is mandatory for every business operating in Indonesia — it's required for banking, invoicing, payroll, and all tax reporting. Registration is handled through the Directorate General of Taxes and results in your official Tax Registration Certificate.
What MCS Consulting handles for you:
- NPWP registration for your business entity
- Issuance of your Tax Registration Certificate
PKP: Taxable Entrepreneur status
Once your business crosses Indonesia's VAT revenue threshold — or if you choose to register voluntarily for B2B credibility — you'll need Taxable Entrepreneur (PKP) status. This allows you to collect and report VAT, and requires activation of Coretax, the Directorate General of Taxes' current tax administration system.
What MCS Consulting handles for you:
- PKP application and issuance of your Taxable Entrepreneur Certificate
- Coretax activation for your business
- Electronic Certificate setup for e-Filing (tax return submission)
- Installation guidance for Coretax and e-Filing systems
- Ongoing technical support for both systems
Tax registration and reporting in Indonesia are governed by the General Provisions and Tax Procedures Law (UU KUP), while business licensing operates under the OSS-RBA framework established by Government Regulation No. 5 of 2021. MCS Consulting stays current with all Directorate General of Taxes and OSS regulation updates on your behalf.
Step-by-step process
OSS account setup
We create and configure your Online Single Submission account, the foundation for your NIB application.
NIB application
Your Business Identification Number is issued through OSS, classified under the Risk-Based Approach (NIB RBA) according to your business sector and activity.
NPWP registration
Your company is registered with the Directorate General of Taxes to obtain your Tax Identification Number and Tax Registration Certificate.
PKP application, if applicable
If your business meets the VAT threshold or you choose to register voluntarily, we apply for your Taxable Entrepreneur Certificate.
Coretax and e-Filing activation
Once PKP status is granted, we activate your Coretax account, set up your Electronic Certificate for e-Filing, and guide you through installation — with ongoing technical support as needed.
How long does it take?
Total typical timeline
1–2 Weeks
For NIB and NPWP alone; add 1–2 weeks if PKP and Coretax activation are also required.
Not sure which licenses your business needs? Schedule a free consultation and our team will map out exactly what applies to you.
Schedule a Free ConsultationFrequently Asked Questions
Simplify Your Business Licensing
Let our experts handle all your business licensing needs efficiently and professionally