Here are the Legal Documents and Costs to Establish a Startup!

Lately, you must have heard the term startup a lot, right? Actually, what is a startup? Simply put, a startup is a start-up company or a company that is just starting to run its business. Are startups always related to technology? Not really. The term startup is often heard after the rapid growth of new companies related to technology or application development. Well, for KH friends who are interested in setting up a startup, it’s good to pay attention to several things related to what must be prepared before starting to build this startup company. The first thing is that KH pals must certainly find a business idea that is different from the others, and the idea can solve problems and needs of potential customers. Already have an idea? Then next KH pals also need to think about business planning and the capital needed to establish a startup. Then, in addition to these three things, another aspect that is no less important to establish a startup is legal documents. In a business, legality documents are the legal foundation that will help a company in its business activities. Therefore, startup companies need to have legal documents. Apart from being a form of compliance, this document can also be a means for smooth business activities. Then, what are the legal documents required to establish a startup?

Trademark

Every startup has a name that will be used as a trademark that will be applied in business. This brand name will also become an asset of the company and needs to be protected to avoid theft of ideas by other parties. Therefore, the steps that need to be taken in the processing of startup company legality documents are to register the idea and name of the startup with the Director General of Intellectual Property of the Ministry of Law and Human Rights. For example:

• The trademark of the startup, then it can be registered Intellectual Property Rights (IPR) in the form of trademark registration
• If KH friends have new technology that will be developed, it can be registered for IPR in the form of patent registration.
• If KH friend has an application that has a specific difference, then it can be registered for IPR in the form of Copyright

Startup Legal Entity and Deed of Establishment

The next thing to consider regarding legality is the selection of a business entity. In Indonesia itself, there are several types of legal entities that apply and can be chosen by startup players, one of which is a Limited Liability Company (PT). This legal entity is one of the most commonly used by startups. Apart from PT, there is also a business entity called Persekutuan Komanditer or better known by the abbreviation CV (Commanditaire Vennootschap). The difference between the two business entities lies in the ownership of personal property. If PT there is a separation of personal property while CV is not. In establishing a business with a legal entity, usually the costs required in managing a PT are greater when compared to a CV. After determining the legal entity you will use, then next you need a legality document in the form of a business establishment deed which contains the name of the business entity, type of business field, business capital, domicile of the business entity, composition of the management, to the rights and obligations of each party to the business entity.

Taxpayer Identification Number (NPWP)

Like other companies that are incorporated, startups must also have an NPWP as one of the legal documents, this NPWP is certainly a requirement for taking care of several other legal documents such as the Business Identification Number (NIB), company accounts, applying for capital to banks, to the opportunity to get business projects from private and government companies.

Risk-based Business Identification Number (NIB)

NIB is a business identity issued by the Ministry of Investment after businesses register themselves through the Online Single Submission (OSS). In addition to functioning as a business identity, NIB also simultaneously applies as a Company Registration Certificate (TDP), Import Identification Number (API), Customs Access, especially if the business owner conducts export and import activities. This means that with NIB, business owners no longer need to take care of the three business license requirements. In addition, by having an NIB, business actors can easily apply for a Business License and Commercial or Operational License as a further license. This risk-based NIB has 4 types of business scale (based on business capital) and 4 types of risk scale (based on the level of business risk) consisting of Low Risk (RR), Low Medium Risk (MR), High Medium Risk (MT) and High Risk (RT). This risk scale will determine the business license that needs to be owned by the business actor. Here are the details of the 4 risk-based business licenses that business actors need to understand:

Source: Ministry of Investment / Investment Coordinating Board (BKPM) Those are the 4 legal documents that KH pals need to establish a startup. Furthermore, approximately how much does it cost to take care of all the startup legality documents?

KH Contact

As an overview, for a startup company incorporated as a PT, the cost that must be prepared is IDR 8 million to IDR 10 million. Meanwhile, a startup company in the form of a CV must prepare costs of around Rp5 million to Rp10 million. Don’t forget, you should also take care of these legal documents from the beginning of the startup formation. Why? Because in business activities, each of these documents is interconnected so that it is needed for the smooth running of business activities. In addition, throughout the stages of startup growth, there will be many other legalities needed such as Intellectual Property Rights, contracts and agreements, and others. All of these legal documents are needed for startups to protect the business, protect personal assets, develop the business, to make it easier for KH friends to get business capital loans, increase credibility, and much more. Given this, for KH friends who want to establish a startup, don’t miss to take care of the four legality documents above! And take it easy, because now the processing of legality documents has become easier with the existence of Kontrak Hukum. Kontrak Hukum provides PT establishment services quickly and at affordable prices, and provides a complete service package including deeds, OSS, NPWP, NIB, Location Permits and Business Permits, as well as business address rental. If you want to know more information, you can immediately visit the page https://kontrakhukum.com/memulai-usaha/ or contact Kontrak Hukum through the following link in Tanya KH and Direct Message (DM) to Instagram social media @kontrakhukum.