Have you ever found a stall or shop that sells groceries or home needs and says UD followed by the owner’s name? Do you know that UD stands for Usaha Dagang? UD is indeed a business that is most often found in life. This is because many business actors choose UD as a business entity when they want to start a business in the trade sector. In addition, UD is also considered as a business that is able to reach the community at large. The reason is because the business activities carried out usually aim to fulfill daily needs. Similar to other business entities, to establish UD, business actors must also go through the establishment procedures and take care of the required business licenses. This time, Kontrak Hukum will provide a further explanation of what a trading business is, the characteristics of a trading business, and the procedure for establishing a trading business. Want to know the answer? Let’s immediately see the explanation from Kontrak Hukum in the following article.
Definition of Trading Business
Usaha Dagang (UD) is a type of business entity run by an individual or independently and its main activities include trading goods or services. Being run by one person, namely the owner, is a characteristic owned by UD. When the owner of UD has a person/partner who helps run business activities, the status of that person is an employee or subordinate of the UD owner. Furthermore, Article 1 of the Decree of the Minister of Industry and Trade Number 23/MPP/KEP/1/1998 defines a trade institution that can be equated with UD activities. A trading institution is an agency/body that can take the form of an individual or business entity either as an exporter, importer, wholesaler, retailer or other similar trading institutions, which carry out trading activities by moving goods and/or services either directly or indirectly from producers to consumers. This means that trading business actors will carry out purchasing activities and resell purchased goods without changing the form or condition of the goods sold so that there are no activities carried out by the owner to increase the economic value of an item. This is why UD usually conducts trading for basic necessities, groceries, building materials, etc.
Characteristics of a Trading Business
Trading businesses also have characteristics or distinctive features when compared to other business entities. The characteristics include:
- Not a legal entity
Unlike PT or foundation, UD is not a legal entity. So in comparison, the procedure for establishing a UD business entity will be easier to do because it does not require a notary to make a deed. - Same owner as UD
In UD, the business entity is equated with the owner so that the owner has full authority in managing and running the business. As a result, there is no separation of wealth or separation of responsibility between UD and its owner. If there is an undesirable event and UD experiences problems then the assets owned by UD are not able to cover the problem, the UD owner has the obligation to bear and use his personal assets. This happens because there is no separation of assets so that personal assets must also be used. - No minimum capital
In positive law in Indonesia, there is no specific regulation regarding capital requirements for UD. So it is assumed that there is no minimum capital that must be deposited to establish UD. Because it can be established individually, the business activities carried out become more affordable so that there is no need for abundant capital.
Procedure for Establishing a Trade Business
Because a trading business is equated with its owner, business actors do not need to register UD like CVs, firms, or other business entities. However, business actors must still have legality to carry out their trading business activities. The legalities in question include:
- Business Domicile Permit.
- Taxpayer Identification Number (NPWP).
- Trading Business License (SIUP).
- Company Registration Certificate (TDP).
KH Contact
Well, that’s the explanation of what a trading business is, the characteristics of a trading business, to how the procedure for establishing a trading business. For KH Pals who still have questions about trading business, need help to take care of business licensing, or want to consult about their trading business, KH Pals can contact Kontrak Hukum at the following link Tanya KHKHor through our Instagram social media @kontrahukum. For more information, KH Friend can also directly visit the pagehttps://kontrakhukum.com/pendirian-badan/
