What is NIB in Indonesia and Why is it Necessary to Obtain it for the Airbnb Business?

If you’re considering starting an Airbnb business in Indonesia, one term you should familiarize yourself with is NIB, which stands for Nomor Induk Berusaha, or Business Identification Number. This unique identifier, issued by the Indonesian government, holds the key to unlocking numerous benefits for your business. Let’s delve into the world of NIB and how it plays a pivotal role in your Airbnb venture.

Understanding NIB

NIB, or Business Identification Number, is a distinctive code that helps in the identification, tracking, and regulation of businesses across various domains such as licensing, taxation, and legal recognition. Whether you’re venturing into the world of hospitality by offering villas, homestays, or accommodations, or exploring other entrepreneurial avenues, NIB is your gateway to compliance with the law.

The Role of NIB in Airbnb Business

Operating an Airbnb business in Indonesia goes beyond just providing a cozy stay for travelers. It entails adherence to legal frameworks, taxation norms, and regulatory requisites. 

Here’s where NIB is required:

Legal Compliance

Obtaining a NIB is a legal requirement for businesses operating in Indonesia. It ensures that your business is registered and recognized by the government, allowing you to operate within the legal framework and adhere to regulations related to taxation, permits, and other business-related matters.

Taxation Made Simple

Among the most significant aspects of Airbnb business is managing taxation. NIB empowers you to accurately report and pay the requisite taxes on the income generated from your hospitality venture. This is especially crucial in Indonesia, where specific tax obligations are tied to rental income from accommodations.

Permits and Licensing

NIB serves as a prerequisite for obtaining necessary permits and licenses related to your business activities. These permits may include the Trading Business License (SIUP) and the Tourism Business License (TDUP), which are often consolidated under the NIB system. Having a NIB streamlines the process of obtaining these permits, which are essential for operating legally.

Types of NIB: Individual vs. Company

NIB caters to a diverse range of business entities. Let’s explore the two primary categories:

Individual NIB

This type of NIB is obtained by individual entrepreneurs who own and operate businesses on

their own, such as sole proprietors. It applies to businesses owned and managed by a single

person. The individual NIB application typically requires personal identification documents (such as an ID/KTP), property-related permits (like Building Permit/IMB), and a Tax Identification Number (NPWP). This NIB is available for local citizens only.

Company NIB

Designed for registered legal entities, the company NIB encompasses corporations, partnerships, and cooperatives. The company NIB application involves providing corporate information, such as company registration documents, permits, and Tax Identification Numbers (NPWP) for the company. Suitable for businesses with multiple owners or partners, or for properties owned by corporate entities.

Requirements for NIB Application

For Individual NIB (available only for Local Citizens):

1. Personal identification documents (ID/KTP – Identification Card)
2. Building Permit (IMB) or relevant property-use permit
3. Tax Identification Number (NPWP) as an individual taxpayer

For Company NIB:

1. Company registration documents (Deed of Establishment)
2. Building Permit (IMB) or relevant property-use permit
3. Tax Identification Number (NPWP) for the company
4. Trading Business License (SIUP) or relevant industry-specific permits (SINAS License)
5. Tourism Business License (TDUP) for businesses in the hospitality sector
6. Other permits or licenses specific to your industry or business activities

During the establishment of your PT or PT PMA company, Legal Legends will handle the acquisition of your NIB on your behalf.
Contact us to obtain a personal NIB for your Airbnb business

Learn more about Airbnb Business:
PT PMA set-up
Building permits IMB, PBG, SLF