Types of Business License for Textile Groceryman/Wholesalers
“If you want to start a business as a textile groceryman/wholesalers, don’t forget to fulfill several things before starting your business. There are also restrictions for wholesalers that need to be considered.”
Becoming a groceryman/wholesalers is the right choice if you have a wide network. An example of an item that could be the best choice is selling textiles.
Why? Because one of the basic human needs is clothing. Referring to the Big Indonesian Dictionary, clothing can be interpreted as clothing material.
Clothing is clearly needed to live everyday life. Therefore, having a business as a textile wholesaler is a brilliant idea.
Of course, to become a wholesaler, one must pay attention to the provisions of the law in order to legalize these business activities.
The following will discuss the things that need to be known and prepared by business actors who are interested in becoming a textile wholesaler.
Definition of groceryman/wholesaler
If you look at Government Regulation Number 29 of 2021 concerning the Implementation of the Trade Sector (PP 29/2021), groceryman/wholesaler are distribution business actors who sell various kinds of goods in large parties and not in retail.
Based on this definition, it is clear that wholesalers are prohibited from selling goods at retail to consumers in the same business activity.
In addition, wholesalers are also prohibited from distributing goods marketed by a direct sales system that has exclusive distribution rights (PP 29/2021).
Groceryman/wholesaler are included in indirect distribution activities and can be grouped into two types, namely (PP 29/2021):
- Distributors and their network
- Agents and their network
Responsibilities of groceryman/wholesaler business actors
Based on the provisions in PP 29/2021, wholesale/grocery business actors have obligations that must be fulfilled, including:
- Have a business license as a groceryman/wholesaler
- Have cooperation with producers, distributors, or importers of goods based on an engagement
Furthermore, the following will discuss the outline of provisions for textile wholesale/grocery business actors.
Business license as a groceryman/wholesaler
Business actors who have plans to become textile wholesalers are required to apply for risk-based business licensing on the Online Single Submission (OSS) system. Create permissions in the OSS system first.
If you already have access rights, immediately fill in the business actor data form and general plan of business activities to get a Business Identification Number (NIB).
Provisions related to NIB are regulated in detail in the Regulation of the Investment Coordinating Board Number 4 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities (PerBKPM 4/2021).
One of the data on the general plan of business activities that must be filled in is the appropriate Standard Indonesian Business Field Classifications (KBLI) code. Furthermore, the KBLI that can be identified for textile wholesalers is indicated by code 46411.
The KBLI code 46411 is entitled “Major Textile Trade.” The description of the KBLI, namely, “This group includes large trading businesses of textile industry products, such as various textiles/fabric, batik cloth and others. Including household linen (cloth for household purposes) and others.”
Meanwhile, the KBLI for textile wholesalers shows business activities with a low level of risk. This applies to all business categories, from micro, small, and medium to large enterprises.
Referring to Government Regulation Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing (PP 5/2021), business activities with low-risk levels are sufficient to use NIB for business licensing.
Based on the provisions of PP 29/2021, textile wholesalers can set up shops with a stand-alone self-service system. In addition, you can also set up a textile wholesale shop in a shopping center that has been integrated with business licenses.
Building approval (PBG) and building function-worthy certificate (SLF)
If a business actor intends to establish a stand-alone textile wholesale shop, it is obligatory to fulfill the basic requirements of the OSS system, namely building approval (PBG) and building function-worthy certificate (SLF).
The definition of PBG and SLF can be seen in Government Regulation No. 16/2021 on Implementing Regulations No. 28/2002 on Buildings (PP 16/2021).
Based on PP 16/2021, PBG is a permit granted to
building owners to build new, modify, expand, reduce, and/or maintain buildings in accordance with building technical standards.
Meanwhile, the definition of SLF based on PP 19/2021 is a certificate given by the local government to declare the function of the building before it can be used.
The way to administer PBG and SLF is through the website of the Ministry of Public Works and Public Housing (Kementerian PUPR), namely the Building Management Information System (SIMBG).
Business licensing to support business activities (PB UMKU)
Furthermore, textile wholesale business actors are also subject to provisions for business licensing to support business activities (PB UMKU) which must be fulfilled.
The PB UMKU for textile wholesalers is the registration of goods related to security, safety, health, and the environment (K3L).
In addition, Appendix II of PP 5/2021 for the Trade Sector also includes several business licensing obligations that must be fulfilled by textile wholesalers, including:
- Applying HSE standards
- Submit business activity reports to the central government
- Own or control a correct, permanent, and clear place of business
- Own or control a warehouse that has been registered with a correct, permanent, and clear address (especially if the textile wholesaler/grocery has a warehouse for storing goods)
- Have an agreement with a producer or supplier or importer that can be proven by an agreement, appointment, and/or written proof of transaction regarding the goods to be distributed
For the record, the KBLI with the title “Big Textile Trade” is not only intended for wholesalers/grocers, but also for direct and indirect distributors.
Therefore, there are several requirements for PB UMKU as well as in Appendix II of PP 5/2021 for the Trade Sector which does not apply to groceryman/wholesaler.
Those are some things about wholesale textiles. If you are interested in opening a wholesale business, but are having problems with the licensing process, Prolegal is ready to help!
Author & Editor: Bidari Aufa Sinarizqi
Translator: Desak Nyoman Ratna Sari