When starting a startup business, legality is one of the things that need to be considered besides other matters related to finance and marketing. Even though many startups currently running in the MSME business still don’t have permission, it does not mean that you are following those predecessors who do not comply with existing laws.
However, Indonesia is a legal state, and as a good citizen, of course, it must obey the law. One of them is legalizing a business operated in this country. Regarding the startup business, there are several things about legality that must be understood. Here are some of them.
The first thing to consider about legality is the selection of business entities. When starting a startup business, you will certainly start thinking about what type of business entity will be chosen.
In Indonesia alone, there are several types of legal entities for businesses that are valid and can be chosen by startups. One of the available business entities is PT or Limited Liability Company. This one legal entity is one type of business entity that is most often used by startups.
In addition to PT, there is also the Komanditer Fellowship, better known as the abbreviation CV. This business entity is actually not incorporated as a legal entity. However, making a startup with this type of business entity is not a problem especially considering that the management fees are not as big as PT.
However, in the case of the CV, if it starts to grow and grows it needs to be made PT. Costs incurred can be doubled due to these changes. Therefore, many tips for starting a startup business that is more encouraging to create a business entity in the form of a PT at the same time.
When does a startup need to pay attention to the legality of its business?
You could say this related thing must have been considered since you want to form a startup and manage it. This is because legality is a legal foundation for startups.
Considering this, you must find the right time to immediately take care of the legality and permissions needed as soon as possible after setting up a startup. This of course can be done after all matters related to the choice of the business entity, the documents needed for legality, etc. are complete.
In terms of the time to process the legality of the startup, you do not need to worry about the complexity of managing legality when starting a startup business. Moreover, there are currently many service providers for the legality management.
What documents are needed for legality?
This is now no less important than anything else in the legality of the document. When going to ask for permits and so on, of course you will be asked for various kinds of documents that are a condition for making the legality. For example, for making SIUP or trade business permit that is mandatory for these startups. To make a SIUP, several requirements need to be prepared such as business establishment certificates, KTP, NPWP, disturbance permit, and startup financial statements. To start a startup business, in addition to SIUP, there are also other legal documents such as permits for business places that need to be managed.
The place that we use as a place of residence for startup companies also needs to be made a permit so that later it is not easy to transfer it to someone else. For this license, you will need several requirements such as a business establishment certificate, a list of startup managers, a building permit or a building permit, a building or house rental certificate if the place is rented, proof of ownership, and a business plan.
In addition to the permits listed above, there is also a NPWP or Taxpayer Identification Number that needs to be made at the nearest tax office. Then, the TDP or Company Register must be made according to the law. For the manufacture of TDP, documents such as SIUP, SITU, NPWP, and other legal documents will be needed.
How much funding is needed to prepare legality?
Furthermore, starting a startup funding business can be a taboo thing. That is because, however, the startup business can be considered as students who still have thin purses and must save for everyday life. However, because the legality is important to support the business, take the funds as an investment for the company.
For the establishment of its own business entity, funding for PT requires funds of up to around Rp 8-10 million and for CVs it can be Rp 5-10 million. These costs can depend on the size of the PT that you will establish. Maybe you can prepare around Rp. 15 million for everything, including to rent office addresses.
Are there other things that need to be considered in making legality?
After talking about the 4 things above, there are still other things that we need to consider, one of which is compliance or compliance.
After we have legality, this is the time to obey the compliance points in the law. Do not let the startup that we operate do not meet the current law points. And there are still other things that need to be considered, such as related to intellectual property rights and so on.
For other permits, related to products to be sold, we also need to pay attention. For example for culinary startups or food ingredients, of course there needs to be supervision from the BPOM agency and the health department. You need to register the product to get certification from the relevant agency.
Those are some things about legality that need to be understood by entrepreneurs who are starting a startup business. Never feel lazy to take care of the legality because no matter how with legality, startups that we build can feel benefits such as support from the government, security in operating a business and avoiding the risk of being closed unilaterally by the authorities and so on.
Regarding customers, if we have clear legality, we will be more respected and make customers feel safe buying the products we offer. This is information about the legality that needs to be understood when starting a startup business. Hopefully this information is useful.