Construction Service Business License: Requirements & How to

In the construction industry, having a valid business license is an important step to run business operations legally. One of the licenses that construction companies must have is the Construction Service Business License. This license is proof that your company has met the standards in running a business in the construction field.

Construction Service Business License plays an important role in supporting the development of the property and construction business. Various housing, building, and infrastructure development projects certainly require trusted construction services, as evidenced by permits.

Then, what is a Construction Service Business License, and how to get it? Check out this article below!

What Is a Construction Service Business License?

A Construction Service Business License is a legal document that must be owned by a company engaged in construction services.

A Construction Service Business License serves as proof that the company has met the legal requirements to run its business in the construction sector. Without a Construction Service Business License, a company cannot legally offer and perform construction services.

The advantage of having an official license is that the company can be more trusted by clients and business partners. In addition, a Construction Service Business License is also a key requirement to participate in building construction projects organized by the government or private parties.

Therefore, you should always learn how to apply for a Construction Service Business License correctly.

Government Regulation on Construction Service Business License

Construction Service Business License has been regulated in the Government Regulation on Construction Service Business License Number 5 of 2021, Article 80. This regulation contains licensing procedures, validity periods, and obligations that must be fulfilled by construction business entities.

Government Regulation Number 5 of 2021 also emphasizes the importance of certification for workers and companies in the construction sector. This aims to ensure that every construction project is carried out by competent and officially licensed experts. Thus, the risk of construction failure due to procedural defects can be minimized.

Validity Period of Construction Services Business License

Every company that has obtained a construction services business license must pay attention to its validity period. The validity period of a construction services business license can vary depending on local regulations. However, generally, a Construction Service Business License is valid for up to three years.

If the license is not renewed on time, the company may be subject to sanctions and fines. In order to keep the construction service business active, companies must always update supporting documents. This includes certification of business entities, labor, and proof of compliance with regulations set by the government.

The Requirements of a Construction Service Business License

Before applying for the Construction Service Business License, the company must prepare various important documents. The requirements of the Construction Service Business License include the identity of the business owner, company legal documents, and proof of ownership of supporting facilities.

Here are some of the construction services business license requirements that must be prepared.

Application form with Rp6,000 stamp duty.
Photocopy of ID card.
Certificate of Business Place/Company Domicile.
Copy of Taxpayer Identification Number (TIN).
Photocopy of Taxable Entrepreneur.
Recommendation from the headman.
Layout plan.
Copy of Building Construction Permit.
Photos pass 3x4 as many as 2 sheets.
Environmental document (EIA).
Copy of proof of Land & Building Tax (L&B Tax).
Copy of land certificate.
Data on owned equipment and facilities.
Copy of Land Use Allocation Permit.
Business Entity Certificate.
Application for Technical Personnel Reference Number.
Copy of the old Construction Service Business License (if extending).

Construction Service Business License Process

In order to operate legally, the company must go through the stages of obtaining a construction services business license, which includes several main steps. Each stage must be carried out according to regulations so that permits can be obtained without obstacles. These stages are divided into three parts. Here is a brief explanation.

1. Certification of Expertise

Every worker involved in the construction business is required to have a Certificate of Expertise (SKA). This certificate shows that the worker has expertise and competence in accordance with national standards. A Certificate of Expertise can be obtained through an official certification body recognized by the government.

2. Business Entity Certificate

The Business Entity Certificate is required as proof that the business entity has met the administrative and technical requirements. This document is issued by the Construction Services Development Agency after the company meets the predetermined criteria. This certificate can only be processed after the Certification of Expertise has been obtained.

3. Construction Service Business License

After the Certification of Expertise and Business Entity Certification are obtained, the company can apply for a Construction Service Business License. This process is carried out through the relevant department by attaching all the requirements mentioned earlier. Once the license is issued, the company can officially run its business.

Types of Construction Business

There are several types of construction business licenses that are applicable in Indonesia. Each type of license has specific conditions that must be met by the applying company. These permits are also issued by different departments. For more details, see the following brief explanation.

1. National Construction Service Business License

The national Construction Service Business License is given to construction companies that have met the requirements. This permit allows the company to work on construction projects in accordance with the qualifications listed in the Business Entity Certificate. This certificate is issued by the local government.

2. Construction Service Business License for Foreign Investment

Construction Service Business License for Foreign Investment is granted to construction companies that involve foreign investment.

Companies with this license can cooperate with local partners in large construction projects, especially those involving technology and capital from abroad. Construction Service Business License for Foreign Investment is published by the Ministry of Investment and Downstream Industry.

3. Foreign Construction Business Entity

A Foreign Construction Business Entity is a license granted to foreign companies that wish to operate in Indonesia. However, these companies can usually only take on large-scale projects and must partner with local companies to run their operations. This aims to enable knowledge transfer.

So, that was a brief explanation of the Construction Service Business License. Processing a Construction Service Business License involves various requirements and stages that must be completed.

It’s important for you to understand the types of Construction Service Business License and the application process, thus, you can ensure that your construction business runs according to legal provisions.

After you have a valid license, you also need to choose and prepare good-quality materials to ensure sturdy building results. Therefore, use Ready Mix Concrete and Precast Concrete from Merah Putih Beton. This ready-mix concrete is designed for various construction applications according to your needs.

So, contact us now to get more information about Beton Precast and the variety of Beton Ready Mix for your construction projects. Make sure that every construction you build uses the best materials with Semen Merah Putih!

Construction Service Business License: Requirements & How to Apply