Here, List of Business Legalities that Startup Companies Should Have
Corporate Secretary Service Indonesia – Indonesia is one of the 10 countries with the highest number of startups in the world by 2022, according to the Startup Ranking report. There are 2,346 startups in the country. This number puts Indonesia in fifth place in the world. By looking at this development, of course, the supervision and regulation aspects must continue to be improved by the government. One of them is in terms of business legality. Here are the things that startups need to consider to take care of and have business legality.
1. Startup idea and trademark
Every startup company has a name that will be used as a trademark and an idea that will be implemented in their business. When the trademark and idea are unique, original, and there are no competitors using it, it is better to register the Intellectual Property Rights (IPR) so that in the future it will be free from legal problems related to brand IPR.
2. Legal entity of the startup
Many startups need investor funds to get bigger, so it is highly recommended to create a Limited Liability Company (PT) legal entity. Why PT? In general, investors will invest in startups by participating as owners in the startup, so it will be easier for them to enter KH’s startup, whose ownership is divided into shares.
3. Business license and operational license for startup companies
Startup companies in running their business in Indonesia are required to have a business license and operational license as required in Indonesian laws and regulations, according to the business model of the business activities carried out. Based on the business model, here are the business licenses that startup companies must have:
Trading Business License (SIUP)
SIUP must be owned by companies that conduct trading. The application to obtain a SIUP is done through an electronically integrated business licensing service or OSS. SIUP applications are tailored to the goods to be traded and the way of trading (wholesale or retail trade).
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Operational license
In addition to the SIUP, startup companies should note that in order to trade certain goods, the company is required to obtain a special operational license to trade them, such as the BPOM Permit for drug and food products or the Medical Device Circulation Permit for medical devices. If a company trades an item in Indonesia without having the appropriate business license and operational permit, the company may be subject to sanctions in accordance with applicable laws and regulations, including but not limited to imprisonment.
Industrial Business License or Izin Usaha Industri (IUI)
An IUI is mandatory for companies that operate web portals (websites) or digital platforms for commercial purposes. This includes organizing marketplaces and comparative websites.
Other business licenses (according to the specific business sector)
For specialized business sectors, especially those related to financial technology (fintech) and/orpayment systems, for example, startup companies are required to obtain a business license in accordance with applicable laws and regulations in Indonesia.
For fintech startups, it is very important to first obtain a business license from the financial authorities in Indonesia, both the Financial Services Authority atau Otoritas Jasa Keuangan (OJK) and Bank Indonesia (BI) before carrying out its business activities. This is because financial services are services that concern the lives of the wider community, so that to obtain a business license, you must meet the requirements set by OJK and BI.
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