Establishing and managing a company is quite challenging and is often accompanied by various obstacles. So, on the way to establishing and maintaining business continuity, company owners must be prepared to face obstacles that may arise. Well, the obstacles in creating this company should be known from the beginning before starting a business. By knowing the obstacles at the beginning, KH Friend can determine what steps to take so that the company and business establishment activities become smoother. Therefore, in this article, we have explained what obstacles are often faced when creating a company. Whether it is a company with a legal entity such as a Limited Liability Company (PT), or an unincorporated company such as a Commander Partnership (CV), Firm, Civil Partnership, and Trade Business (UD). Let’s see the explanation until the end!
What are the obstacles in creating a company?
Enterprise constraints refer to the obstacles or difficulties often faced by entrepreneurs in the process of establishing and developing their enterprises. These obstacles can be diverse and vary depending on factors such as industry, company size, geographic location, and other internal factors. The following are some examples of common obstacles often faced in creating a company:
Capital Constraints
One of the most common obstacles faced in creating a company is ignorance regarding the initial capital. Moreover, the enactment of the Job Creation Law has given a lot of influence on the amount of authorized capital, especially for PT. If previously the PT Law required a minimum authorized capital of IDR 50 million, then currently the authorized capital to establish a PT is not determined. The minimum amount of authorized capital is based on the agreement between the shareholders who establish the PT or based on the scale of business activities. Provisions regarding business scale criteria are regulated in Article 35 of Government Regulation No. 7 of 2021 concerning the Ease, Protection, and Empowerment of Cooperatives, and MSEs. This is also a requirement in the establishment of a PT. It states that the criteria for business capital or annual sales results, consisting of:
- Micro Enterprises: Businesses with a capital of <IDR 1 billion, excluding the land and building of the business premises.
- Small Business: Businesses with a capital of Rp1 billion – Rp5 billion, excluding land and buildings of the business premises.
- Medium-sized Enterprises: Businesses with a capital of IDR5 billion – IDR10 billion, excluding land and buildings of the business premises.
Obstacles to Choosing a Business Field
When establishing a company, KH Buddy must determine specifically what field of business will be run. The specification of this business field will be a reference in making the deed of establishment and taking care of licensing related to business activities. To determine the specification of the business field, KH pals can refer to the Indonesian Standard Business Field Classification (KBLI). KBLI was created to make it easier for business actors to determine the category of business fields to be developed in Indonesia and is an absolute requirement that must be met before establishing a company. So, what if your business idea is not listed in the KBLI? The solution is to look at the business field that is most closely correlated with your idea. Then, include the core business idea in the company’s deed of establishment.
Company Domicile Constraints
A business entity must have a business domicile. Moreover, some types of business entities can no longer utilize private residences as domiciles. A legal business domicile can create a positive perception for potential clients and partners in your company. And most importantly, a business domicile is needed to take care of legality documents such as SKDP and RDP. Well, in choosing a business domicile, you should utilize a building that is intended for a place of business. To determine this, you can look at the IMB.
Company Licensing Constraints
Many business owners do not fully understand the types of business licenses required for their business. One of the reasons is because there are many types of business licenses in Indonesia and each has different stages and processing requirements. The DKI Jakarta PTSP Agency website alone lists approximately 62 types of business licenses. Not to mention in other regions where the types of business licenses may be more or different. Another example is if you want to do business in the construction sector, you need a specific license, namely the Construction Services Business License (IUJK). This ignorance can make KH Pals even take care of business licenses that are not correct or actually not needed. If this happens, it will certainly be inefficient in terms of time and cost. Therefore, it is important to understand exactly what business licenses are needed for your business.
Time Constraints
The Job Creation Law was created to overhaul and improve business licensing in Indonesia, including shortening license processing time. However, bureaucratic practices in the field often become a scourge for new business actors. Especially for the establishment of a PT, it takes quite a long time. It can take several days to prepare the deed of establishment and issue the SK Kemenkumham, even if there are no errors and shortcomings in the required documents. Therefore, to speed up the process and save time, KH pals can first learn the document requirements needed and also register on the OSS page. Also learn the basic rules of law of a license which is useful to minimize errors in licensing. Those are some of the obstacles that business people often face when creating a company. It would be nice if KH pals pay attention to the things above, so that they can become a body of consideration and attention so that later the process of establishing a company can run more smoothly without obstacles.
What Steps Need to Be Taken?
Now, KH pals already know what obstacles are often faced by business people when creating a company. From the explanation above, it can be concluded that sometimes building and developing a company is indeed a complex challenge. However, by planning the right steps and implementing effective solutions, you can face these obstacles with more confidence and increase your company’s success. The following are some steps and solutions that KH pals can do to face the obstacles in creating a company:
Plan Carefully
The first step is to plan your business thoroughly. Make a clear and detailed business plan, including short-term and long-term goals, marketing strategies, competitor analysis, and financial projections. With a strong business plan, KH buddies will be able to anticipate potential obstacles and make wiser decisions.
Careful Financial Management
Financial constraints are often one of the biggest challenges in building a company. It is important to have a good understanding of financial management and create a realistic budget, regularly monitor and evaluate your company’s cash flow, reduce unnecessary costs, and consider additional financing options such as loans or investment partners.
Consult with Legal Experts
Engaging the services of an experienced legal expert or business consultant is a wise move to ensure a thorough understanding of the creation and fulfillment of company legalities. A legal expert can help Sobat KH understand the legal requirements that apply in the industry, as well as advise on the steps that need to be taken.
Learn the Applicable Laws and Regulations
Conduct in-depth research on the regulations and laws that apply to your business. Know the licensing requirements, taxation, consumer protection, employment, and other legal aspects relevant to your company’s operations. You can utilize government websites, legal journals, and business guidebooks as references.
Obtain Business License and Necessary Legalities
Ensure that you meet all the necessary permits and licenses so that your company is legal and legitimate in the eyes of the law. Identify the specific permits and licenses required for and fulfill them before your company operates.
KH Contact
KH pals want or are creating a company but are hesitant and confused about what and how the procedures should be done? Take it easy, to simplify the process of establishing a company, KH pals can contact Kontrak Hukum!
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No need to worry about the above obstacles, with us, KH Friend can establish all types of business entities easily, quickly, and affordably starting from PT, CV, Individual PT, Firm, Cooperative, and others. Not only that, the establishment of a company at Kontrak Hukum also includes the required legality documents, you know, such as the Deed of Establishment, SK Kemenkumham, NIB, OSS, NPWP, and Business Address.
What are you waiting for? Let’s make your company establishment easier with us by visiting the KH Services – Establishment page. If you have any other questions, do not hesitate to consult with us for free at Ask KH or via direct message (DM) to Instagram @kontrakhukum.
