Handling the Trading Business License (SIUP) can be a confusing process for legal consultants. Many law practitioners wonder, “Does my law firm need an SIUP?” or “Why was the KBLI I registered rejected by the OSS system?”
These questions are natural, given the unique position of legal consultants within licensing regulations.
Read Also: Want to Open Your Own Law Firm? A Complete Guide for New Attorneys
When Do Legal Consultants Need an SIUP?
Not all legal consultants are required to obtain an SIUP. However, there are specific conditions that make it mandatory:
- If operating as a legal entity such as a PT: An SIUP is a crucial part of the legal requirements to run your business lawfully.
- If the net assets exceed IDR 50 million (excluding land and buildings): Your business is no longer classified as micro, and an SIUP becomes an administrative requirement.
- If you plan to participate in tenders, secure funding, or obtain financing: Many financial institutions and government agencies require an SIUP to validate business legality.
- If you want to boost client or partner confidence: An SIUP indicates that your firm is managed professionally and in compliance with the law.
In other words, although not always strictly mandatory by regulation, an SIUP is practically important, especially for business operations and professional growth.
Read Also: Can a Law Firm Be Structured as a PT? Here’s the Full Explanation
KBLI: The Key to Approval or Rejection of Your Business License
The main challenge arises when legal consultants must choose a KBLI in OSS. There are three common options:
- KBLI 69101: Lawyer Activities
- KBLI 69102: Legal Consultancy Activities
- KBLI 69109: Other Legal Activities
The subtle differences among these codes often lead to input errors. Since the OSS system is risk-based and very strict, choosing the wrong KBLI can result in your application being rejected, suspended, or never issued at all.
Challenges for Legal Consultants in the OSS System
OSS is not just a matter of clicking and done. Legal consultants face various administrative hurdles:
- Different interpretations of KBLI among OSS officers.
- Not all KBLI codes have an officially assigned officer, making some applications “conditional.”
- If you need to change your KBLI, you must revise the notarial deed (costing IDR 5–7 million).
- The OSS system is complex with minimal technical guidance.
Read also: What Are the Requirements for Establishing a Law Firm in Indonesia?
Risks of Choosing the Wrong KBLI
One of the biggest risks is the revocation of your business license. But that’s not all:
- Being disqualified from government tenders.
- Failing to access funding from banks or investors.
- Tax issues, as rates are determined by KBLI.
- Wasting time and money on document revisions.
Read Also: Financial Management Tips for New Law Firms
Tips for Avoiding KBLI and SIUP Issues
For Legal Consultants Just Getting Started
- Determine your business structure: If you choose to operate as a PT, you must obtain an SIUP.
- Select the KBLI that matches your primary activities. Focus on 69101 (lawyer) or 69102 (legal consultant).
- Engage a licensing consultant to ensure accurate KBLI selection and OSS submission in compliance with regulations.
For Those Already Operating
- Review the KBLI code registered in OSS and ensure it accurately reflects your actual business activities.
- If there’s an error in your KBLI, immediately make the necessary adjustments, including revising the notarial deed and updating supporting documents.
- Stay updated on new regulations to ensure ongoing compliance.
Read Also: Critical Mistakes When Establishing a New Law Firm and How to Avoid Them
Practical Solution: PT Incorporation and Virtual Office from vOffice
Want to avoid the risk of choosing the wrong KBLI when setting up your legal practice? Use vOffice’s PT incorporation service. With professional support, you’ll be guided from the initial deed drafting, KBLI selection, to finalizing OSS licensing.
Don’t have a physical office? No problem. You can use vOffice’s virtual office service. A legal, official address that supports all your administrative needs. Perfect for legal consultants who want a professional image without high rental costs.
Contact us now and get exclusive offers!
FAQ
Do legal consultants have to obtain an SIUP?
No, unless they operate as a PT or have net assets exceeding IDR 50 million.
Which KBLI is suitable for legal consultants?
Generally, legal consultants use KBLI 69102; lawyers use KBLI 69101, and other legal activities use KBLI 69109.
Can KBLI be changed?
Yes, but it requires revising the notarial deed and updating OSS, which involves time and cost.
Why is choosing the correct KBLI important?
KBLI determines your license, tax rates, access to funding, and eligibility for tenders.
What if I choose the wrong KBLI?
You must revise your deed and OSS submission, and you may face administrative sanctions if not corrected promptly.
