Building a business must begin with careful preparation.
Not only about strategy, but also other aspects that support the development of the company’s business itself, one of which is through legal services.
Yes, in this country where everything is regulated by laws and regulations, anyone who runs a business and establishes a company must have complete legality documents.
Well, maybe KH Friend is wondering, how important is legality for the company and the smooth running of its business?
Of course it is very important.
Because legality is one of the legal foundations that must be considered since you want to establish a company.
Legality is also a form of compliance and obedience of business actors who create and run businesses in this country.
Then, what are the legal documents that must be taken care of by business people in running their company’s business?
Types of Company Legality
In Indonesia itself, there are several legality documents that business actors must have when establishing a company.
This depends on the business field or industry.
In general, company legality documents consist of the following:
- Deed of Establishment
The 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 deed of establishment contains the name of the business entity, the capital, the type of business field, the domicile of the business entity, the composition of the management, and the rights and obligations of each party in the business entity.
- Taxpayer Identification Number (NPWP)
Another legality that a company must have is a corporate NPWP.
Not only to take care of taxation, NWP 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 has registered its business activities.
This NIB can be taken care of by registering it through the online single submission (OSS) with a record of already having a business establishment deed.
- Trade Business License (SIUP)
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.
To take care of it, business actors do not need to wait for their 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, a SIUP is valid as long as the company conducts its business activities.
In other words, business actors do not need to bother applying for an extension, as this document does not have an expiration date.
- Company Domicile Certificate (SKDP)
Another company legality document that must be owned 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 the business is located.
Because it is possible, different requirements in other regions.
- Trademark
When KH pals decide to have a business, the brand is an important thing to think about.
Besides being able to differentiate your business from others, a brand can also make it easier for businesses to be remembered and recognized by target markets and consumers.
By registering a trademark, businesses have also indirectly protected their business legally to avoid misuse by irresponsible parties.
Benefits and Importance of Having Company Legality
Now, KH pals have understood some of the company legality documents that need to be owned to protect the business based on applicable laws.
So, what are the other benefits and the importance of business legality for the continuity of a company’s business activities?
Here is the explanation:
- Legal Protection
Many companies initially run smoothly, but in the middle of the road, the company’s operations are suddenly 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.
Where, by taking care of and having licensing documents in accordance with laws and regulations, you can run company operations with a sense of security without worrying that your business will be suddenly frozen by the government.
- Personal Assets Protected
Have you ever heard of a company going 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 the existence of a legal entity as part of the legality of the business, you don’t have to worry about personal assets being used to pay debts when the company goes bankrupt and suffers losses, because there is a separation of assets in it.
- Growing the Company to a Larger Scale
Along with the business journey, KH Friend certainly hopes that the company can continue to progress and develop.
Having profits that continue to increase and consumers that continue to grow is one of the hopes of all business people.
This is where capital becomes one of the important things needed when you want to expand your company to a larger scale.
Now, with business legality, access to capital loans becomes easier, either through banks or new investors.
- Company Credibility Increased
Taking care of legality also helps increase the credibility of the company in the eyes of consumers, business partners, suppliers, investors, banks, and so on.
Where with clear and legal company legality, the business will be more trusted and considered more professional.
Target consumers will no longer hesitate to choose the products or services offered.
In addition, with high credibility, the company will certainly also be easier to get several projects or tenders, both from the government and private companies.
- Easier Share Sales
In addition to protecting the business, there are other benefits that KH pals can get when fulfilling legality, especially if the company is incorporated as a PT, namely the ease of selling or transferring shares to other parties.
In addition, you also don’t need to bother if one day you intend to leave the company or if there are other parties who will enter as new shareholders.
This is because you can sell the company’s shares to other parties, especially if the company has grown and is of high value.
Contract Law as a Reliable Company Legality Service
Now, KH pals have understood that without legality, it will be more difficult for the company to run a business.
In addition to the company not being legally protected, the absence of legality is also the same as closing access to growth.
So before starting a business, don’t miss out on fulfilling company legality documents!
Interestingly, there are now various company legality management services that are ready to help, one of which is Kontrak Hukum.
KH pals don’t need to worry about the long licensing process and all the uncertainties.
We are ready to help from zero until the business and company are legally formed.
Besides being trusted, Kontrak Hukum also provides the most complete and affordable legal services for all business actors in Indonesia.
With a digitally integrated system, we are ready to fulfill the needs of your company in a matter of hours optimally.
Why should you use company legality services at Contract Law?
- It has been trusted by more than dozens of partners of major companies in Indonesia in resolving their legal and business issues,
- Fast and efficient processing,
- Data and information are guaranteed to be safe and secure,
- Professional services at affordable prices.
For more information on services that suit your company’s needs, please visit our website KH Services – Starting a Business. Or if you have questions about other legal documents, just consult with us at Ask KH or via direct message (DM) to Instagram social media @kontrakhukum.
Business owners can also join the KH Business Community, where you can get access to information, discussions, and support from other business owners.
Let’s be part of the KH Business Community!
Register for free by clicking here.
In addition, KH pals can also add additional income of millions of rupiah by becoming part of the Contract Law Affiliate Program.
Easy and efficient because only by referring affiliates!
The registration method is also quite easy, just go directly to the following link below, yes!
