Creating and starting a business in Indonesia means that you must obey and comply with applicable laws and regulations, without exception. One form of compliance with the law by a company is processing legality documents for the business it runs. What is meant by company legality? Company legality here means that a company must take care of the required legal documents related to the business activities carried out by the company, especially a business license. In a business, legality is the legal foundation of a business that must be considered since you want to start a business. The forms of company legality vary and are in accordance with the field or business industry you are in.
However, currently there are still many entrepreneurs, especially startups who start their business without taking care of the legality of their company and think legality is not that important. In fact, a business without legality can hamper the development of the business in the future. Legality in business has an important role that can affect the sustainability of your business. Not only that, there are many other benefits that you can get by having legality. Below, Libera.id will describe in detail the benefits of managing Company legality.
Many businesses at first went smoothly, but halfway through the business they were suddenly terminated. You don’t want this as an entrepreneur, right? This is where you have to realize that the legality of a company has an important role. Where, by managing and having licensing documents that are in accordance with statutory regulations, you can run your business with a sense of security without worrying that your business will be frozen suddenly by the government.
Protected Personal Assets
Have you ever heard of a company going bankrupt and experiencing a big loss? But the owners or shareholders still live their lives as usual? How can? Of course this is possible if you have a company in the form of a legal entity such as a limited liability company that can protect your personal assets. As a legal entity, separate entity that has its own liabilities and assets and can act on its own behalf just like a human being. By establishing a legal entity as part of company legality, you don’t need to worry that your personal assets will be used to pay debts when the company goes bankrupt and experiences losses, or if your company is unable to pay debts to creditors. It’s different if your business is only a CV or firm that is not a legal entity, all business losses will have an impact on your personal assets, because there is no separation of assets in it.
Expanding Business to a Larger Scale
Along the way, you will definitely hope that your business can continue to progress and develop. Having profits that continue to increase and consumers who continue to grow is one of the hopes of all entrepreneurs. And when this happens, you certainly want to expand your business by opening new branches to reach a wider range of customers. This is where capital becomes one of the important things you need when you want to expand your business to a larger scale. With the existence of company legality, your access to getting a business capital loan will be easier, either applying for a loan through the bank or getting capital from new investors who will later become shareholders in your company.
Increased Business Credibility
Managing business legality also helps you increase business credibility in the eyes of consumers, business partners, suppliers, investors, banks, and so on. Where, with clear company legality, your business will be increasingly trusted and considered more professional, so that your target customers will no longer hesitate to choose the product or service you offer. This of course also affects your sales turnover right?
In addition, with high credibility, you will certainly find it easier to get several projects. Because the legality of the company is one of the requirements when your company wants to participate in tenders or projects, both from private and government companies.
Easier Stock Selling
Apart from protecting your business, there are other benefits you can get if your business is in the form of a PT, namely the ease of selling or transferring your shares in the company to other parties. In addition, you also don’t have to bother if one day you intend to exit the business or if another party will enter as a new shareholder. This is because you can sell your shares to other parties. This will certainly benefit you, especially if your business has grown considerably and the value of your company is high, your shares will be worth more.
Those are some of the advantages that you can get by pocketing company legality documents. Then when should you take care of company legality? It’s good, before starting business activities, you must first think about the type of business entity that is right for your business. Then, look for more information about what licenses your business requires based on the business activities carried out.
Without having legality, you will find it more difficult to run a business. Apart from an unprotected business, not having legality is the same as blocking your access to progress. So, before starting a business, you must immediately take care of the legality of the company. To take care of the legality of your company easily, quickly and comfortably.