The market potential for cosmetics in Indonesia is huge and is located in Southeast Asia, which is very beneficial in term of time and transportation costs.
However, why more and more cosmetics investors have started to be compliant in operating through license permits in recent years? A few years ago, many cosmetics were sold in the market through e-commerce platforms, but most of them belonged to chaotic unlicensed businesses. 2021 onwards, the government requires strict regulations for all cosmetics platforms and businesses, and no distribution is allowed without a license. Once discovered, the products will not only be destroyed, but will also face huge fines.
Determine The Type of Cosmetic Company
Before joining the cosmetics industry in Indonesia, it is recommended to think about whether you plan to do import wholesale trade, retail or manufacturing.
- Manufacturing:
Instead of cosmetics-related production qualifications (BPOM), also need to apply AMDAL.
- Import Wholesale Trade:
According to the two modes of OEM (pure import), the required BPOM document is different. - Pure Cosmetic Retail:
Can be purchased directly from the manufacturer or distributor and then sold.
On this article, we will focus on sharing how to register an imported cosmetics wholesale trading company, which is also the most popular type of cosmetics company.
Company Registration
1. Basic Requirements
| Business scope code | Proportion of foreign investment | Risk level | Shareholders requirements | Registered and paid-up capital | Director, Commissioner |
| 46443 Wholesale Trade of Cosmetics | 100% | Medium-high risk | At least 2 shareholders, can be natural or legal person | At least 10 billion Rupiah | At least one each |
2. Registered Office
Requirements: There must be a warehouse and the address must be included on the business registration certificate.
Shan Hai Map suggests to directly look for a Ruko with an integrated office and warehouse as the registered address, which usually has two floors, with the upper floor as a warehouse to storing products and the lower floor as an office area to fulfill daily office needs. Not only fulfill BPOM’s requirements, it is efficient at the same time, but it also eliminates the problem of address changes and warehouse audits, as if the office and warehouse have different addresses, BPOM would require two audits.
Pictures of Ruko :
3. Import License
Import license is required for BPOM certification, the import tax that will be paid on imported products will be lower, thus saving costs.
4. Business Scope
Most cosmetic companies producing their products in other country and import the finished products to Indonesia for sale, which is equivalent to an importer + distributor, and when applying BPOM, it is necessary to have 46443 business scope (the code for wholesale trade of cosmetics).
BPOM
For the BPOM qualifications and other requirements that imported cosmetics distributor need to obtain, interested parties can read the relevant contents of Shan Hai Map.