In recent years, the popularity of esports has increased quite rapidly. The number of tournaments from national to international level as well as the phenomenon of people watching others play games is one of the reasons. Because of these developments, the Indonesian Esports Executive Board (PBESI) as the parent organization of esports sports which is also responsible for managing, regulating, as well as housing esports teams, players, and game publishers in Indonesia recently issued PBESI Regulation No. 034 / PB-ESI / B / VI / 2021 concerning the implementation of esport activities in Indonesia. This regulation brings many changes in the world of Indonesian esports, one of which is that professional Esport Teams are now required to form legal entities.
eSports at a glance
Now to find out more about the provisions of legal entities for esport teams, Kontrak Hukum will discuss it below. Check out the explanation until the end! For information, esport is an achievement and professional sport by competing in games that are recognized nationally by the Indonesian Esports Executive Board. Esport activities are participated by players consisting of amateur players, Indonesian professional athletes, and foreign professional athletes. These players are usually part of an esport team. According to PBESI Regulation No. 034/PB-ESI/B/VI/2021, an esports team is a manager of amateur players and/or professional esports athletes consisting of Indonesian, foreign, and amateur professional esports teams. To become an Indonesian professional esports team, the team must first meet administrative and achievement requirements. The administrative requirements include:
- legal entity in the form of a limited liability company (PT);
- have a Taxpayer Identification Number (NPWP) and report the Annual Tax Return (SPT Tahunan);
- have legality of premises and business;
- has eligibility for facilities, accommodation, and Gaming House;
- has a training schedule;
- have player health standards (passing routine medical examinations and drug tests including, but not limited to marijuana, amphetamines, and cocaine);
- have legal contracts with professional athletes;
- has a logo;
- has a name that is free of ethnicity, religion, race, and intergroup (SARA) elements and is different from other Indonesian Esports Teams; and
- has a special jersey or uniform that has a distinguishing element from other Indonesian Esports Teams.
PT Establishment for eSports
Esport teams that have met the above requirements will receive a PBESI membership certificate which is proof that the esport team has become an Indonesian Professional Esports Team. Then, is the establishment of a PT for an esport team the same as the establishment of a PT in general? The process of establishing a PT for an esport team is no different from establishing a PT in general. Esport teams still follow the provisions in the Limited Liability Company Law and Article 109 of the Job Creation Law. PT can be established by one / more people by providing a certain amount of authorized capital which is divided into shares and separated from personal property. Since PTs are currently divided into capital partnerships and individual companies that meet the MSE criteria, the establishment process can be different. A PT in the form of an individual company can be established if it meets the MSE criteria, namely:
- Micro Enterprises: have a maximum business capital of IDR 1 billion and an annual sales revenue of IDR 2 billion.
- Small Business: has a business capital of more than Rp l billion to Rp 5 billion and annual sales of more than Rp 2 billion to Rp 15 billion.
- Medium-sized Enterprises: have a capital of more than Rp 5 billion to Rp 10 billion and annual sales of more than Rp 15 billion to a maximum of Rp 50 billion.
The establishment is done by filling out the statement of establishment in Indonesian. The individual company will obtain legal entity status after registering the statement of establishment and obtaining a certificate of registration electronically. Because it only needs to register electronically, an individual company/PT with MSME criteria no longer requires a notarial deed in its establishment. However, keep in mind that the above provisions only apply to PTs with MSME criteria or individual companies. If the PT is established by more than one shareholder and/or no longer meets the criteria of being an MSME, then the establishment of the PT follows the provisions in the Company Law, namely by making a deed of establishment through a notary. The deed of establishment must then be submitted to the minister through the Directorate General of AHU to obtain authorization to become a legal entity / PT. Well, Friend KH that’s an explanation of the latest provisions for Indonesia’s professional esport team.
KH Contact
For KH Pals who need help taking care of licensing a Limited Liability Company business entity for the KH Pals esport team, KH Pals can also use legal services from Kontrak Hukum. Guaranteed fast, easy, and affordable. If you have questions or want to consult regarding the establishment of business entities and other legal issues, do not hesitate and immediately contact Kontrak Hukum at the Tanya KH bonded link or via Instagram @kontrakhukum.
