UD

• A UD is neither a legal entity nor a partnership — in law it is the owner themselves, trading under a business name.
• There is no separation of assets. Business debt is personal debt, and marital property is exposed with it.
• That is also why it cannot be sold as a company; only its assets and its name can change hands.
• No notarial deed is required by law. Many owners still have one made as evidence of the name, not as a condition of existing.

1. Have the owner’s ID number, personal tax number and business address ready.
2. Register in OSS as an individual business operator and obtain the NIB; for a low-risk activity the NIB is itself the licence.
3. Meet the local requirements where the sub-district asks for them, and the sector permits where the goods are regulated — food, medicines, cosmetics.
4. A notarial deed can be added later, but the status stays a sole proprietorship.

• It is taxed as the owner’s personal income, not as a company — including the final 0.5% rate while turnover stays under Rp4.8 billion, with the first Rp500 million of an individual’s turnover untaxed.
• Records still have to be kept, and separating the business account from the personal one is the only way the numbers become readable.
• VAT registration starts once turnover passes Rp4.8 billion.
• No annual filing to the Ministry of Law, and no organ that has to meet.

Choose a UD to start as fast and as cheaply as possible, for as long as the debt and the risk stay within what you can carry personally. Once the business borrows from a bank, employs at scale, or needs a partner, a PT Perorangan is the natural next step.

• No dedicated statute: the general civil and commercial rules apply
• Government Regulation 5/2021 and the OSS system for risk-based licensing

A summary of the rules in force, not legal advice. Rules and thresholds change — check with the relevant authority before you register.

Micro, small, medium, large: the rupiah thresholds and what changes in each class.