Entrepreneurs who are just starting out have now been given the convenience of taking care of legality. One of them is by being able to establish an individual company or often referred to as an Individual PT. Yes, through the regulation of Law No. 11 of 2020 concerning Job Creation or better known as the Job Creation Law/Omnibus Law, business actors who have a single capital, a limited amount of business capital, and only as individual business actors can establish their own PT through an Individual PT. Individual PTs can be used as business activities on a micro and small scale. Moreover, because PT is a legal entity that clearly separates personal wealth and company wealth. Yes, still a part of PT, the type of Individual PT has its own advantages that are different from ordinary PT. So that it can be a tip for novice business people to establish an Individual PT. So, what are the advantages of an Individual PT when compared to an ordinary PT? Check out the full explanation in the following article.
Overview of Individual Companies
Based on Article 1 of Government Regulation (PP) No 8 of 2021, an individual company or PT Perangan is a Limited Liability Company (PT) which is an individual legal entity that meets the criteria of Micro and Small Enterprises (MSEs). Because it is an individual legal entity, there is only one shareholder who also acts as the board of directors. If there is more than one shareholder, it must change its status to a regular PT. From this explanation, an individual PT can only be established if its business is included in the MSE criteria. as for the MSE criteria, it has been determined in Article 35 of PP No. 7 of 2021, including the following:
- Micro enterprises have a business capital of up to a maximum of Rp1 billion, excluding the land and building where the business is located;
- Small businesses have a business capital of more than Rp1 billion up to a maximum of Rp5 billion, excluding land and buildings of the business premises.
Legal Basis of Individual PT
The provisions regarding Individual PTs themselves have been contained in several regulations, among others:
- Law No. 11 of 2020 on Job Creation
- PP No. 8 of 2021 concerning the Company’s Authorized Capital and Registration of Establishment, Amendment, and Dissolution of Companies that meet the criteria for MSEs
- PP No. 7 of 2021 concerning Ease, Protection, and Empowerment of Cooperatives and MSMEs
- Permenkumham No. 21 of 2021 concerning Requirements and Procedures for Registration of Establishment, Amendment, and Dissolution of PT Legal Entities
What are the advantages of an individual company?
Individual PTs are often considered more special than regular PTs because they can be established without a notarial deed. In addition, the establishment cost is also cheaper because it can be done by yourself without the help of a notary. The following is an explanation of the advantages of an Individual PT when compared to a regular PT:
No minimum authorized capital requirement
The amount of capital to be able to establish an Individual PT is only based on the wishes and abilities of the founder after filling out the Establishment Statement. In other words, the capital to establish a legal entity is free ranging from Rp0 to Rp5 billion.
Just One Founder
If you’ve been having trouble setting up a PT because of the second person who will be the founder or second shareholder, then now there’s no need to worry. Because as explained, you can set up your own Individual PT without the need for a second party.
Flexibility & Full Control
Individual PTs provide great flexibility in terms of management and management of the company. As a sole proprietor, you will have full control over all business operations and decisions. This means that you can make business decisions quickly and change strategies if necessary without having to consult with shareholders or business partners so that you can immediately fix the business when problems occur in the future.
Ease of Establishment
Setting up an Individual PT is relatively cheap and easy. You don’t need to spend extra money to distribute shares or prepare legal documents. The establishment procedure is relatively simple and can be completed in a short time.
You can register your PT through http://ptp.ahu.go.id and pay the PNBP to complete the registration process. After obtaining the Statement of Establishment of Individual Company, the PT has successfully become an official legal entity.
Greater Profits
Since you are the sole owner, all business profits do not need to be shared with other shareholders or business partners. You can also determine your own salary and benefits without having to share with business partners. Establishing an Individual PT can be the best choice for aspiring entrepreneurs who want to start their own business with relatively low costs and simple procedures.
READ ALSO: Let’s Understand the Terms and Procedures of Individual Company Establishment Here!
Nonetheless, before deciding to start a business, make sure to consider the needs and goals of the business and then choose the form of business entity that best suits your business situation and conditions!
KH Contact
Now for KH Pals who are currently also running a business but are still hesitant to establish an Individual PT or do not have the time to take care of it, you can consult with Kontrak Hukum. In addition to providing free business law consultation services, we can also help you to establish an Individual PT business entity, including the required legality documents such as SK, NIB, OSS, and NPWP. So, what are you waiting for? Entrust the establishment of your Individual PT with Kontrak Hukum by visiting the KH Services – PT Establishment page. If you still have questions, you can also contact us at Tanya KH or send a direct message (DM) to Instagram @kontrakhukum.
