Home Decor Trends! Interested in Opening a Furniture Business? Here’s the License!
“The KBLI that applies to furniture stores is KBLI 47591 Furniture Retail Trade which includes retail trade specifically for furniture, such as tables, chairs, cabinets, beds, bookshelves, shoe racks, and sideboards. This includes retail trading specifically for mattresses and pillows/bolts.”
The existence of the Covid-19 pandemic has made the majority of people have more activities in their respective homes, this then encourages many of them to decorate their homes, especially young people, so that their homes are neat, clean, and aesthetic!
Of course, this can be a lucrative business opportunity for business people. So, what are the permits needed to build a furniture store?
Standard Indonesian Business Field Classifications (KBLI)
The KBLI that applies to furniture stores is KBLI 47591 Furniture Retail Trade which includes retail trade specifically for furniture, such as tables, chairs, cabinets, beds, bookshelves, shoe racks, and sideboards. This includes the retail trade business specifically for mattresses and pillows/bolts.
This KBLI has a low level of business risk for all business scales, including micro, small, medium and large businesses. According to Government Regulation Number 5 of 2021 concerning Implementation of Risk-Based Business Licensing, the business license required for low-risk KBLI is a Business Identification Number (NIB) which is valid as long as business actors carry out their business activities.
Product Registration of Goods related to Security, Safety, Health, and Environment (K3L)
Oops, not only NIB, if the business is already in the commercial stage, furniture trading business actors must also fulfill the Business Permit to Support Business Activities (PB UMKU), namely Goods Product Registration related to Security, Safety, Health, and Environment (K3L Goods Registration). This provision is regulated in the Regulation of the Minister of Trade Number 26 of 2021 concerning the Stipulation of Standards for Business Activities and Products in the Implementation of Risk-Based Business Licensing in the Trading Sector.
Meanwhile, this registration aims to provide protection to consumers against security risks that result in casualties or damage related to Security, Safety, Health and Environment (K3L).
This permit needs to be fulfilled by the business actor himself if the business actor in question produces his own furniture, or if the business actor only acts as a retailer, the business actor needs to ensure that the goods he sells have complied with this permit.
However, not all furniture items must be registered, only items related to K3L must be registered and have a registration mark in the form of K3L Goods Registration, security requirements, and testing methods. This includes vacuum cleaners, toasters, rice cookers, sheets, and carpets. This registration is submitted by the producer or importer before the goods circulate on the market.
To obtain the permit, there are general requirements and special requirements that must be met by business actors. General requirements include:
- Self-declaration of conformity;
- Goods Laboratory Test Results; and
- List and address of distributors, agents, wholesalers, and/or retailers.
Meanwhile, there are a number of special requirements for each type of goods, for example, there are special requirements for electrical and electronic goods and there are also goods containing hazardous chemicals.
There is supervision regarding the fulfillment of the above permits, you know! Producers or importers who violate the prohibition on distributing goods that do not have K3L Goods Registration or include K3L Goods Registration that does not belong to them, are obliged to withdraw goods from distribution and destroy goods.
Do you still confused about taking care of your business license? Don’t worry, Prolegal is here to help!
Author: Aleyna Azzahra Badarudin
Translator: Desak Nyoman Ratna Sari