6 Benefits of Business Licenses for Business

Corporate Secretary Service Indonesia – When you think about starting a business, most people think that a business license can be done after the business is running smoothly. Not to mention the bureaucratic matters that may be confusing, and you don’t know where to start. Suppose your company works directly with the public in some capacity. In that case, the company will need a business license.

A business license is a document issued by the government to ensure that the business is legal and safe for the public. In addition to making the business legal to operate, this document also increases credibility. It allows the company to apply for business capital loans. Even some smart customers will sometimes refuse to purchase if the business does not have a valid business license.

Government agencies have the authority to fine or even close businesses that operate without the required licenses. For example, if you are a clothing seller, then you don’t need a license. However, you may want to open a restaurant. In that case, you must comply with local food safety codes and go through several checks on food ingredients and the restaurant environment to ensure that the restaurant is safe.

The difference is very clear: damaged clothing can be handled more easily than food poisoning. Risks like that are what explains why the restaurant needs a business license to operate. Meanwhile, for businesses with greater risks, such as medicine, law, the manufacture of new drugs or airlines, business licenses are handled by more specialized state officials or scientific experts.

The type of business license required by each business depends on the type of business and where the business operates. All levels of government, countries, districts, cities, and even sub-districts can manage it. Indeed, not all businesses require this license, but having a business license will provide much more profitable benefits for the business in the future. Some of the benefits that a business can get if it has this important document include:

1. Protected by Law

By having a business license, a business will be protected by law. So when a problem occurs related to criminal law, the company can file a formal lawsuit as well. For example, when a competitor copies a business product without buying a license from your business. It is also important to know that the legal requirements for obtaining a business license may vary from city to city. Therefore, make sure whether your business can meet the requirements. In addition, having this document can protect your business from being closed because it is considered illegal.

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2. Building Credibility

New businesses are often wary of consumers, especially when the product is sold online. Consumers want to make sure that the website or service is trustworthy. Suppose you display a business license in your store or website. In that case, your business can gain trust that your business is not a scammer, and they dare to shop at your store without hesitation. A business license also helps other businesses who want to work with you feel safe because they know that your business has high credibility.

3. Applying for and Receiving Business Capital

Usually, many parties offer funding for new businesses, especially if the business has the potential to succeed in the future. A business license also makes it easier for businesses to apply for business capital. To get these funds, a business must have an official license that shows that the business is legal and safe for all parties involved. When a business does not have this document, usually no party dares to provide funds because there is no guarantee of legal security.

4. Reducing Risk for Many Parties

Regardless of who is involved in the business, this document reduces all risks associated with the business for everyone involved. From a business owner’s perspective, there is little risk in product creation, manufacturing, market testing, and distribution. When working with other businesses and your business is the party that does not have a business license, both parties will be in danger because there is no guarantee of legal security.

5. Administration and Taxes

Another benefit of a business license is that it allows your business to continue operating without worrying about being forced to close. The government can provide guidance or other assistance to businesses that have a business license so that they can continue to grow. Business licenses also help businesses with taxes, both corporate taxes and employee taxes. It even keeps businesses away from legal and financial problems.

6. Easy to Enter Foreign Markets

With the right business license, you can bring your business products or services to a much wider market. One of them is the foreign market. If you have found a product or service with a trademark or copyright, in this case stated in the document. Then, you will likely be given limited rights to produce and sell it to foreign markets.

Having a business license gives prestige and stability to a business that will attract customers and investors. It also shows that your business is invested and dedicated to the future success of the company. Once you understand the benefits of this important document, you don’t need to hesitate to immediately get the appropriate type of license from the local government or region.

Don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business, also when you need Business License. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!