Along with the number of startups in Indonesia, the term “startup” has certainly become familiar. Generally, people interpret startups as companies that have just started and are engaged in internet or digital technology. Literally, the term startup comes from an English word (start-up) which means the act of starting a business venture. So, a startup can be interpreted as a new company that is still in the pioneering stage to develop in finding a market. At first glance, startup companies are synonymous with the world of technology and the internet. However, the scope turns out to be wider than that, covering the fields of economy, services, agriculture, tourism, education, entertainment, and others. In Indonesia alone, there are many Indonesian startup companies that have successfully achieved unicorn status, such as Gojek, Tokopedia, Traveloka, Bukalapak, Kopi Kenangan, OVO, and others. If you see this success, are you also interested in starting a startup? This could be a great idea! However, keep in mind that the establishment of a startup company is not always smooth, some succeed and some fail. This is supported by data from the Ministry of Communication and Information Technology (Kemenkominfo) which states that of the 1,300 startups that participated in the 1000 Startup National Movement program, only 10% have survived. Moreover, the threat of recession has also impacted on the lack of funding for Indonesian startup companies, leading to a wave of layoffs. The failure experienced by startup companies can be caused by several factors, both internal and external. But generally, internal factors are more influential because they are related to management strategies. Of course, these failures must be a lesson for startup companies that are currently running or that are just about to be run. For that, for KH friends who want to establish a startup company, it is necessary to pay attention to some of these things in order to avoid failure.
Ignoring Intellectual Property Rights on Products Sold
Many startup companies, especially those engaged in technology and information, ignore the importance of intellectual property rights. In fact, intellectual property is one of the important assets that needs to be officially registered to protect it as a company asset that has economic value. Moreover, the registration of intellectual property rights also adheres to the first to file principle where the party who first submits a registration application and is approved will get exclusive rights to the intellectual property. So, if Sobat KH does not register it immediately, then everyone can use it without permission and Sobat KH will lose the opportunity to benefit when people use the intellectual property.
Ignoring Taxation Issues
Running away from your tax responsibilities? Get ready for big problems, even business failure just because you ignore tax issues. If you hope that your startup company can last long and continue to grow, then you can start by making a company NPWP. This NPWP is also a requirement that you need when you want to take care of other legalities such as a Trade Business License (SIUP) and Company Registration Certificate (TDP). After having an NPWP, KH Buddy must also manage corporate taxes appropriately, starting from calculating, paying, and reporting taxes. There are several types of taxes that KH Buddy must pay and report every month, such as Income Tax (PPh) and Value Added Tax (VAT). KH pals are also required to report SPT annually and if negligent, a fine of Rp1,000,000 will be imposed.
No Business License
All the needs such as capital and business plans are well prepared, but your startup company does not have a business license? That means you are letting your business face complicated legal problems! So before deciding to establish a startup company, KH pals must start thinking about how to obtain a valid business license in accordance with your startup business field. Before conducting the licensing process, you can start by determining the appropriate business entity, whether in the form of a Limited Liability Company (PT), Commanditaire Vennootschap (CV), Firm, or individual business. The choice of business entity is very important, because it will determine the licensing process and the legal responsibility of the founder.
Absence of Shareholders Agreement
With only trust, many startup founders overlook legal issues, such as the issue of shares or capital. In fact, a shareholders agreement is very important to further regulate the authority of each shareholder. In addition, the shareholders agreement also contains provisions when there are new shareholders or existing shareholders who want to sell their shares to other parties.
No Founder Agreement
As the founder of a startup company, you should not only focus on how to run the desired business model, but also pay attention to the legal aspects, one of which is the creation of a founders agreement. Founders agreement is a cooperation agreement between founders that aims to run a business or company. This agreement is made by all founders of the company before starting to run the business. The founders agreement contains essential matters such as the role and capital of each founder of the company to conflict resolution mechanisms if disputes arise between the founders of the company.
Not Having Agreements or Contracts Required for Legal Protection
Often, startup company founders rush to realize their ideas and creativity into a business without paying attention to the formal legal agreements in building the business itself. In fact, the bigger a startup company is, the greater the risks that arise. For this reason, startup companies must strengthen the legal foundation of their business from the start, namely with a business agreement or contract. A business agreement or contract is an important document to clearly regulate the rights and obligations of the business and protect the startup company from legal problems that may occur in the future.
No Legal Documents Related to HR
Especially important aspects related to the legality of startup companies are not only between the company and the government, but also between the company and its employees. As a startup company owner, you must pay attention to your obligations as a company and the legality of your employees. To do so, you can recruit HR Legal in your startup company who is responsible for various employee legality matters, including the fulfillment of workers’ rights such as salary, income tax, BPJS Employment, insurance, and others.
Lack of Understanding of Tax Implications for Business
In addition to ignoring taxation issues, it turns out that quite a lot of startup business owners or entrepreneurs have little understanding of tax rules because perhaps their background is only in the world of technology. Yes, although many startup companies “burn money” at the beginning of their establishment, it does not mean that they ignore their tax obligations as citizens. It is precisely when a new business starts that tax matters must be considered, namely by doing tax planning. With tax planning, everything can be decided appropriately including tax matters, so that tax obligations are no longer a burden in doing business. Don’t forget to always update the latest tax rules so that you can take advantage of tax incentives provided by the government. That is a series of reasons or mistakes that are often made by startup company business owners so that they often fail. To avoid the above, it’s good to prepare your startup business needs well!
KH Contact
To develop and increase the real valuation of a startup company, KH Buddy can use legal and business services from Kontrak Hukum. DiBA is suitable for startup company founders who need a complete team in legal, accounting, and tax. KH pals can get business services ranging from making business licenses, agreement contracts, company deeds, even to accounting, tax, and marketing services, only in one place with Kontrak Hukum. Immediately visit the page https://kontrakhukum.com/memulai-usaha/ or contact us via whatsapp or telephone at 0821-1212-5767, or via Direct Message (DM) to Instagram @kontrakhukum.
