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Certificate of Authorization
I need a Certificate of Authorization to grant permission for an employee to represent our company in negotiations with local suppliers. The document should specify the scope of authority, duration of the authorization, and include contact details for verification purposes.
What is a Certificate of Authorization?
A Certificate of Authorization lets organizations legally conduct specific business activities in Indonesia. It serves as official proof that a company has met all regulatory requirements and received permission from Indonesian authorities to operate in their field, from manufacturing to professional services.
Businesses need this certificate before starting operations, and must display it at their premises. The document, issued under Law No. 3/1982 and related regulations, includes key details like the company's name, business type, and operational scope. Without it, companies risk fines and operational shutdowns from local enforcement agencies.
When should you use a Certificate of Authorization?
You need a Certificate of Authorization before launching any business operations in Indonesia. This includes starting a new company, opening additional locations, or expanding into new business activities. Getting this certificate early helps avoid costly delays and legal complications during critical startup phases.
Indonesian businesses must present their Certificate of Authorization when bidding on government contracts, applying for business licenses, opening corporate bank accounts, or registering for tax purposes. Many private sector partners also require seeing this certificate before signing major contracts or establishing business relationships.
What are the different types of Certificate of Authorization?
- Operating License Authorization: Allows basic business operations and requires annual renewal
- Industry-Specific Authorization: Contains extra requirements for regulated sectors like banking, mining, or healthcare
- Foreign Investment Authorization: Special version for companies with foreign ownership, issued by BKPM
- Branch Office Authorization: Permits companies to expand operations to new locations
- Special Economic Zone Authorization: Modified certificate with unique provisions for businesses operating in designated economic zones
Who should typically use a Certificate of Authorization?
- Business Owners: Must obtain and maintain the certificate to legally operate their companies in Indonesia
- Government Regulators: Issue certificates, conduct inspections, and enforce compliance with business regulations
- Legal Representatives: Help prepare applications and ensure companies meet all requirements for certification
- Corporate Partners: Request and verify certificates before entering business relationships or major contracts
- Financial Institutions: Require valid certificates for opening business accounts or processing corporate loans
How do you write a Certificate of Authorization?
- Company Details: Gather accurate business name, registration number, tax ID, and complete address information
- Business Activity: List all intended business activities using official Indonesian classification codes (KBLI)
- Ownership Structure: Prepare shareholder information, including nationality and ownership percentages
- Supporting Documents: Collect deed of establishment, tax registration, domicile letter, and relevant industry permits
- Director Authorization: Ensure authorized director signatures and valid identification documents are ready
- Digital Platform: Use our platform to generate a legally compliant certificate template that includes all required elements
What should be included in a Certificate of Authorization?
- Company Information: Full legal name, registration number, tax ID, and principal business address
- Business Scope: Detailed description of authorized business activities using official KBLI codes
- Validity Period: Clear start date and expiration date of the authorization
- Regulatory References: Citations of relevant Indonesian business laws and regulations
- Official Stamps: Government agency seals and authorized signatures
- Compliance Statement: Declaration of adherence to Indonesian business regulations
- Restrictions: Any limitations or conditions on the authorized activities
What's the difference between a Certificate of Authorization and a Certificate of Authority?
A Certificate of Authorization differs significantly from a Certificate of Authority in Indonesian business law. While they sound similar, they serve distinct purposes and have different legal implications.
- Scope and Purpose: A Certificate of Authorization grants broad permission to conduct specific business activities, while a Certificate of Authority typically delegates specific powers to an individual within an organization
- Legal Standing: Authorization certificates are issued by government regulators and required for business operations, whereas Authority certificates are internal corporate documents
- Duration: Authorization certificates need regular renewal and ongoing compliance monitoring, while Authority certificates usually remain valid until explicitly revoked
- Required Elements: Authorization certificates must include specific regulatory references and government stamps, while Authority certificates focus on defining powers and limitations of the authorized individual
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