Starting the legal business step through the Online Single Submission (OSS) system requires precision, especially when determining the KBLI classification. Choosing an inappropriate code often leads to licensing applications being delayed or even returned by the system.
Based on Central Statistics Agency (BPS) Regulation Number 2 of 2020, the Indonesian Standard Industrial Classification (KBLI) is the standard for grouping economic activities in Indonesia. Choosing a 5-digit KBLI code is not just a formality; it determines the business risk level, types of ongoing permits, tax schemes, and mandatory certifications that business actors must fulfill.
5 Fatal Mistakes in Choosing KBLI Codes
Here are five fatal mistakes you must avoid:
- Carelessly Adding Many Business Codes
Entering dozens of KBLI codes at once without a clear operational plan can trigger administrative complexity. Each KBLI code carries different consequences for fulfilling licensing commitments and tax obligations. - Ignoring the 5-Digit KBLI Structure
Choosing codes that are too general at the 3 or 4-digit level cannot be processed in the OSS system. The OSS RBA system requires the determination of specific 5-digit codes that reflect your daily business activities. - Not Checking the Business Risk Level
Based on Government Regulation Number 5 of 2021 concerning Risk-Based Business Licensing, each KBLI has a risk category (low, medium-low, medium-high, or high). Choosing the wrong code can cause your business to fall into a high-risk category requiring strict technical verification. - Not Referring to the Official KBLI Dictionary
Relying on personal estimates or assumptions without verification on the official site often leads to mismatches between the business description in the deed of establishment and the OSS system. - Incorrectly Determining Main and Supporting Activities
Mixing main business activities with supporting activities without clear separation can trigger rejection during NIB registration.
Guide to Choosing the Right and Safe KBLI
To ensure your business licensing runs smoothly without verification obstacles, follow these practical steps when determining your economic activity code:
- Map Your Main Business Activities
Focus the selection on operational activities that are the company's main source of revenue. If you plan to run both trading and service businesses, neatly separate the main code and secondary codes in your legal documents. - Use the KBLI Check Feature on the Official OSS Site
Utilize the "KBLI Dictionary" feature available on the official OSS system portal. Through this search, you can read the description of activity coverage, investment limits, and special requirements attached to each 5-digit code. - Align with the Purpose and Objectives in the Deed of Establishment
For legal entity companies using PT Establishment or CV Establishment services, ensure that the chosen 5-digit KBLI descriptions are explicitly stated in the Deed of Establishment and your Ministry of Law and Human Rights Decree.
FAQ About KBLI Code Selection
What is the main impact if I choose the wrong KBLI code in OSS?
Business license applications can be rejected by the system or related agencies, the emergence of irrelevant certification obligations, and potential obstacles in tax reporting and fulfillment of basic licensing requirements.
How many KBLI codes are ideal for one company?
There is no definite limit, but it is recommended to choose 1 to 3 main KBLI codes that are truly actively operated. Focusing on relevant codes is much safer than entering too many codes excessively.
Where can business actors check the latest KBLI?
Official checking can be done directly through the OSS portal in the KBLI Dictionary menu or by referring to BPS Regulation Number 2 of 2020.
Consult KBLI Selection and OSS Licensing with Awan Kusuma Legalitas
Determining the right KBLI Classification requires a deep understanding of risk-based business licensing regulations so that your business operations remain safe and legally compliant.
The Awan Kusuma Legalitas consultant team is ready to assist in organizing your business licensing through professional services:
- Integrated Business Licensing and NIB Registration.
- Deed of Establishment and Business Entity Legality Preparation through PT Establishment and CV Establishment.
- Regulatory Compliance Analysis and Business KBLI Adjustment.
Want to ensure your KBLI selection and OSS licensing documents are correct without the risk of rejection? Contact the Awan Kusuma Legalitas Team via WhatsApp now for an integrated legality consultation session!Â
