As a business owner, you not only need to think about business plans and capital, but also need to pay attention to the legality aspect so that your business can run smoothly. But today, there are still many business people who start their business without taking care of legality and consider legality not so important. In fact, legality is an important aspect for business people and can determine business development in the future. How important is legality for business actors and the smooth running of their business? Because legality is one of the legal foundations that must be considered since you want to start a business. Legality is also a form of compliance and obedience for you as a business actor who makes and starts a business in this country. Well, one form of obedience is to take care of the legality documents for the business being run. Then, what are the legality documents that must be taken care of by business people in running their business?
Types of Legalities that Business Actors Must Have
In Indonesia itself, there are several legality documents that business actors must have in running their business. This depends on the field or industry of the business you are running. In general, the legality documents that must be owned by business actors are as follows:
- Business Establishment Deed A company establishment deed is one of the documents made by a notary as the first step to establishing a company, whether a firm, CV, or PT. Basically, the establishment deed contains the name of the business entity, capital, type of business field, place of business entity, management structure, and the rights and obligations of each party in the business entity.
- TIN
Another legality that must be owned by business actors is NPWP. This NPWP can be personal for individual business actors, or Corporate NPWP for companies. Not only to take care of taxation, NPWP is also a mandatory document that becomes a requirement when you want to take care of other legalities, such as SIUP, applying for capital to banks, and others. - Business Identification Number (NIB)
NIB is a legality document that states that the business you are running has registered its business activities. You can take care of this NIB by registering it through the online single submission (OSS) with a note that you already have a business establishment deed. - Trading Business License (SIUP) is a license issued by the local government to business actors to be able to carry out business in the field of trade and services. You don’t have to wait for your business to become big first, because the government has regulated that every company, partnership, and individual must have a SIUP. Based on MOT Regulation No. 07/M-DAG/PER/2/2017, SIUP is valid as long as the company conducts its business activities. In other words, you don’t need to bother applying for an extension, as this document has no expiration date.
- Company Domicile Certificate (SKDP) Another legality document that must be owned by business actors is SKDP. Where this document is an identity of the location and address of a business. To get it, it depends on the requirements in the area where your business is located. Because it is possible, different requirements in other regions.
- Tanda Daftar Perusahaan (TDP) Before the government issued PP No.24/2018 on Electronically Integrated Business Licensing Services, TDP could only be processed after you had made a deed of establishment, SKDP, NPWP, and SIUP. However, you can now apply for a TDP directly through OSS after you have made the deed of establishment.
- Trademark When you decide to have a business, a brand is an important thing that you should think about. Besides being able to differentiate your business from others, a brand can also make it easier for your business to be remembered and recognized by your target market and consumers. By registering a brand, you have also indirectly protected your business legally to avoid misuse by irresponsible parties.
That is the explanation of the various legality documents that must be owned by business actors. Then, what are the goals and benefits that you can feel if you have taken care of and have all these legality documents?
Purpose and Benefits of Legality for Business Actors
In general, the purpose of a legality document is to:
- Protect businesses that compete honestly and openly from the possibility of unfair competitive business practices.
- Protecting the public or consumers from the consequences of possible irresponsible businesses.
- Knowing the description of the state of business activities that are open to all parties
- Knowing the position of the development of the business world and companies established
- Ease for the government to provide guidance, direction, supervision, and the creation of fair business competition and business certainty.
In addition to its purpose, the existence of legality documents also brings a number of benefits to business actors and businesses that are being run, namely:
Legal Protection
Many businesses run smoothly at first, but midway through, the business is abruptly terminated. This is certainly not what you want as a business owner, right? This is where you must realize that legality has an important role. By taking care of and having licensing documents that are in accordance with the laws and regulations, you can run a business with security without worrying that your business will be suddenly suspended by the government.
Personal Assets Protected
Have you ever heard of a business that went bankrupt but the owners or shareholders of the business are still living their lives as usual? How is that possible? Of course, this is possible if you have a business in the form of a legal entity such as a PT that can protect your personal assets. With a legal entity as part of your business legality, you don’t have to worry about personal assets being used to pay debts when your business goes bankrupt and suffers losses, because there is a separation of assets in it.
Expanding Business to a Larger Scale
Along the way, you must hope that your business can continue to progress and grow. Having increasing profits and more customers is one of the hopes of all business owners. And when this happens, you certainly want to expand by opening branches to reach a wider range of consumers. This is where capital becomes one of the important things you need when you want to expand your business to a large scale. With legality, your access to business capital loans becomes easier, either applying for loans to banks or getting capital from new investors.
Increased Business Credibility
Taking care of legality can also help businesses to increase credibility in the eyes of consumers, business partners, suppliers, investors, banks, and so on. Where, with clear business legality, businesses will be increasingly trusted and considered more professional, so that target consumers no longer hesitate to choose the goods and services offered. In addition, with high credibility, business actors will also find it easier to get several projects. Because business legality is one of the requirements when your business or company participates in tenders or projects, both from private and government companies.
Easier Share Sales
In addition to protecting the business, there are other benefits that business actors can get if the business has legality and is in the form of a legal entity, namely the ease of selling or transferring your shares in the company to other parties. In addition, business actors also do not need to bother if there are other parties who want to enter as new shareholders because you can sell the shares to other parties. This will certainly be beneficial, especially if your business has grown a lot. How about KH friends, of course as a business actor you have now realized how important legality documents are for the smooth running of the business?
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In Indonesia, there are still many business people who think that taking care of this legality is a very difficult and complicated thing. Even though this legality is very important for business continuity and is the main capital for business actors to develop their business further. Business actors who do not have legality have certainly violated the rule of law and in the future it will be very likely to get several obstacles such as the absence of legal protection, unable to develop business, and even difficult to get funding assistance from both investors and banks. So for business people who want to build a business, check again whether you have completed business legality documents? Or already have but not complete? It’s time to move quickly to complete business legality with Kontrak Hukum. Kontrak Hukum is the first digital platform that provides reliable, easy, and affordable legal services. With KH, you don’t need to worry about taking care of legality because we provide services for making business establishment deeds, OSS, NPWP, as well as Location Permits and Business Licenses in just one service package. Visit https://kontrakhukum.com/semua-layanan/ or contact us via Ask KH. What are you waiting for? Take care of your business legality at Kontrak Hukum!
