The House of Representatives (DPR) has passed the Job Creation Bill into the Job Creation Law (Job Creation Law or Omnibus Law) on Monday, October 5, 2020 through a Plenary Meeting, The passing of the Job Creation Law provides a lot of benefits for companies. Apart from Micro, Small and Medium Enterprises (MSMEs), the Job Creation Law also has a positive impact on startup businesses. The investment side of the startup business is greatly helped by the role of the Job Creation Law. The regulation perfects the provisions regarding taxation, especially tax holidays and tax allowances. As we know, the purpose of providing these tax facilities is to attract investors to invest and build businesses in Indonesia, which will have an impact on the progress of the Indonesian economy. The capital gain becomes ammunition for startup players to develop their business and create an increasingly positive business ecosystem. Thus. The Job Creation Law makes the prospects for startup businesses and their funding very promising. The Job Creation Law also provides benefits for startup actors because the regulation provides flexibility for the parties (actors and workers) to apply the rules in their work environment. However, the position and interests of each party must be considered because the rules must be fair and balanced. Another thing that must be understood is that the Job Creation Law amends several provisions of Law Number 40 of 2007 concerning Limited Liability Companies (PT Law). The PT Law states that in establishing a Limited Liability Company (PT), the authorized capital required is IDR 50,000,000. The provision is amended that the authorized capital in the establishment of a PT is determined based on the decision of the founders of the company. This will certainly ignite the enthusiasm of the community to open a business through the establishment of a startup. Furthermore, the PT Law regulates the necessity of establishing a PT by 2 or more people, but in Article 7 Paragraph 7 of the PT Law, this provision can be deviated from. Through the Job Creation Law, there is an addition for companies that can deviate from this rule, namely companies that meet the criteria for micro and small businesses (MSMEs), so that the company can be established by one person only. Again, the government makes it easy for people to start a business. Through the Job Creation Law, complex regulations are made easier and the licensing process is made simpler. President Jokowi promises that improvements to the business ecosystem will continue to be pursued through simplifying licensing and providing access to financing. Read also:
- Take a peek at these tips to get your startup business funded by investors!
- Here are the Legal Documents and Costs to Establish a Startup!
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