The Era of the industrial revolution 4.0 makes the startup business in Indonesia grows rapidly. Technology has become a necessity for society where the technology is able to fill consumer demands effectively, and it began to be used by entrepreneurs as an option for their business. Then, what are the legal documents required to build a startup?
Let’s take a look the reviews below!
1. Founder’s Agreement
Making sure your Startup should have a cooperation agreement between founders, such as deciding what form of company entity to established, determining the name of the company in accordance with Government Regulation No. 43/2011, determining the field of business and company capital, arrange ownership and leadership structures, management of IT companies, and help in the event of risk or problems. Determination of business entities becomes an important consideration, in this case Limited Liability Company regulate (Perseroan Terbatas or “PT”) on Government regulation No. 29/2016 has changed the amount of authorized capital of Limited Liability Company shall be determined by agreement the founders and article 2 states that the authorized capital of a Limited Liability Company must be placed and fully paid at least 25% (twenty five percent) as evidenced by valid proof of deposit. Specifically for foreign investment, a minimum investment value of more than 10 billion does not include land and building of business place.
2. Legality Documents
On the other side, your Startup must have legality documents including the deed of establishment which has been signed by a Notary and Decree of the Minister of Law and Human Rights. If the existence of a company can be proven by a Deed of Establishment, then its residence is proven by Certificate of Domicile (Surat Keterangan Domisili Perusahaan or “SKDP”). And then the Company will start doing business as a legal entity that has the obligation to pay taxes to the state, therefore the documents that must be completed are Taxpayer Registration Number (Nomor Pokok Wajib Pajak or “NPWP”). The completeness of this legality document will get a Business Identification Number (Nomor Induk Berusaha or “NIB”) or previously called Company Registration Certificate (Tanda Daftar Perusahaan or “TDP”).
3. License Documents
The other company business permit documents also made online by OSS (Online Single Submission) System [Guidelines: BKPM Regulation No. 1/2020], like a Trade Business License (Surat Izin Usaha Perdagangan or “SIUP”), a permission for infrastructure, commercial and operational licenses which involved other agencies according to your Startup line of business. In addition, brands/trademark your Startup product or services need to be registered at the Director General of Intellectual Property so that in conducting business you can use the exclusive rights agree with Trademark and Geographical Indication Law (Law No.20/2016).