Having ideas and creativity to build a business is not enough. To start a business there is one important thing that must be fulfilled, namely legality. This has become a mandatory regulation for all business activities in the Indonesian region. The legality referred to here has a broad scope, not only by establishing a business entity or legal entity, but also taking care of legality documents for business activities. The form of legality documents can vary, such as the deed of establishment, Decree of the Ministry of Law and Human Rights (SK Kemenkumham) as proof of legalization of a legal entity, Taxpayer Identification Number (NPWP), Trading Business License (SIUP), Business Identification Number (NIB), and so on. Unfortunately, there are still many companies that think that taking care of business legality takes a long time and costs a lot of money. So that in its management, this is often ignored and not fulfilled by business actors. In fact, business legality, which is considered troublesome, is the main capital for the company to develop further. Not fulfilling business legality will make people, government agencies, private parties, or other companies distrust the company. Then, it is natural that employers want to know the quality and skills of prospective job recipients by seeing whether their business legality has been fulfilled or not. Business entities or legal entities that do not have complete legality certainly violate Indonesian regulations and are very likely to get problems in the future. Of course this is a risk that will be accepted by the company. However, that’s not all. The absence of business legality causes several other risks, namely:
No legal protection
Business activities can initially run smoothly, but it does not rule out the possibility that in the middle of the road the business activity is suddenly stopped or frozen by the relevant agencies. By taking care of and having the appropriate legality documents, the business activities carried out will be officially recorded and stored by the government so that business actors will feel safe in carrying out their business activities.
Unable to grow the business
If you want to expand your business from national to international, proof of business legality, which includes a business license, is needed and mandatory because it is required when carrying out export and import trade.
Difficult to get funding
To grow a business, entrepreneurs need an injection of funds from either investors or banks. This is difficult to obtain for companies that do not hold legality because applying for business capital loans to banks requires a business license. Investors will also be difficult to attract because they feel unsafe investing their capital in the company.
Its credibility is in doubt
Having business legality helps increase trust in the eyes of investors, partners, consumers, and others because it is more trusted and considered more professional. Of course, this will increase the company’s revenue because consumers will not be hesitant in choosing the products or services offered by the company. Well, just imagine if our credibility is in doubt, it is certain that few people want to use the products or services we offer. Read also:
How Important is Legality for Business Actors?
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The things that have been explained above will be very painful if we lose business opportunities just because we don’t have legality. In fact, the fulfillment of business legality will lead us to greater opportunities and profits. Therefore, let’s immediately fulfill the legality of your business so that the comfort and safety of doing business will be guaranteed. Visit and contact:
