To operate a business with confidence, security, and full compliance with prevailing regulations, every business owner must possess complete legal documentation. One essential requirement is the Business Premises Permit (SITU). Discover what a SITU is, the requirements, examples, and how to obtain one in this comprehensive iReap POS guide.
What Is a Business Premises Permit (SITU)?
What exactly is a Business Premises Permit? A Business Premises Permit, or SITU, is a mandatory document that business owners must obtain before opening and operating a business at a specific location.
This document contains detailed information regarding the business location and certifies that the business is authorized to operate in accordance with spatial and territorial regulations.
Some key benefits of having a SITU include:
- It serves as the company’s legal safeguard.
- It provides security and certainty for business operations.
- It simplifies administrative procedures and prevents potential disputes.
- It enhances credibility when seeking investors or additional capital.
The issuance of a SITU typically requires five (5) business days after all required documents are submitted. The permit is valid for three (3) years and can be renewed as long as no changes occur to the subject or object of the permit.
Read also: How to Create an Online NIB for Small Businesses
Requirements for Obtaining a Business Premises Permit (SITU)
1. Required Documents
In general, the documents required to apply for a Business Premises Permit (SITU) include:
- A formal application letter for SITU, signed, stamped with the company seal, and affixed with a Rp10,000 duty stamp.
- A legalized photocopy of the applicant’s Identification Card (KTP), verified by the local district office.
- A recommendation letter from the Village or Urban Ward Office and the District Office.
- A Nuisance Permit (HO) along with a business location layout.
- An inspection report detailing results of the site survey.
- Proof of payment for nuisance permit fees and advertising tax.
- A copy of paid PBB (land and building tax) receipts.
- A fiscal certificate issued by the regional tax office (Dispenda).
- A land ownership certificate for business use.
- A lease or building rental agreement.
- A copy of the company establishment deed and Building Permit (IMB).
- A technical recommendation from a relevant professional institution.
- Four (4) color photographs, size 2×3.
2. Security & Order Requirements
In addition to the administrative documents, the business must also meet several operational requirements, which are evaluated during the issuance of the SITU.
Mandatory security and order requirements include:
- The availability of fire safety equipment, such as fire extinguishers.
- The business structure must be built from non-flammable materials.
- Compliance with all workplace safety regulations.
- Proper business conduct, including the prohibition of displaying or selling goods along public roads.
- A special permit is required if business operations extend beyond standard working hours.
3. Health Requirements
Business owners must ensure that their operations meet basic health standards, including the availability of waste disposal facilities.
Businesses must also avoid activities that could cause environmental pollution and ensure the availability of first-aid equipment for workplace emergencies.
Additionally, employers are required to hire local residents who hold valid identification (KTP) and live within the vicinity of the business, in accordance with their educational background.
Business owners must also maintain environmental sustainability, which may include planting trees, creating small gardens, or placing potted plants around the premises.
Documents Required for SITU Renewal
When the three-year validity period expires, business owners may request a renewal. Required documents include:
- A business domicile certificate issued by the District Office.
- A renewal application letter signed by the business owner and affixed with a duty stamp.
- A copy of the previous SITU and a copy of the IMB.
- Copies of the latest STTS PBB and SPPT tax documents.
- A copy of the company establishment deed. For PT (Limited Liability Company) entities, a copy of the Ministry of Law and Human Rights approval letter may also be required.
Example of a Business Premises Permit (SITU)
Below is an example of a Business Premises Permit (SITU) for reference:
After submitting the application, the officer will verify all documents. You will then be required to pay a fee of Rp5,000 per square meter, depending on the business location.
Similar to the initial application, the renewal process typically requires around five business days once all documents are complete.
How to Apply for a Business Premises Permit (SITU)
For first-time applicants, here is the step-by-step process for obtaining a SITU:
- Prepare an official application letter for the SITU, signed on a Rp10,000 duty stamp and stamped with the company seal.
- Include a copy of the applicant’s identification. Typically, the applicant is the business owner, director, or another responsible party. Foreign nationals may use a Temporary Stay Permit.
- If authorizing someone else to process the application, include a power of attorney and a certified copy of the representative’s identification.
- Include a valid Building Permit (IMB).
- Include proof of land tenure, such as rental agreements, ownership certificates, or other binding contracts.
- Include the company establishment deed and legalization documents.
- Include copies of the latest STTS and SPPT PBB tax documents.
- Provide proof of consent from local residents, validated by the neighborhood association (RT/RW) and local government office.
- Obtain a Business Domicile Certificate (SKDU) from the local licensing office.
- Once the inspection is complete and all documents are verified, the Business Premises Permit will be issued.
Running a business requires time, energy, and financial investment. Beyond preparing the necessary legal documentation, you also need reliable tools to help manage your operations with ease.
One essential tool is the IREAP POS PRO application, a powerful cashier system that can be used without data limitations.
It is an excellent choice for various types of businesses, including small enterprises such as food stalls, coffee shops, noodle shops, and convenience stores. Visit ireappos.com for more information. If your business operates in the culinary sector, don’t forget to obtain your Halal Certificate as well.
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