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Ada Pertanyaan? Hubungi Kami Robert Sidauruk
The type of business entity to use when starting a business is one of the first questions that needs to be answered by every person who wishes to establish a new organization or company. Indonesian laws and regulations provide for several types of business entities with different characteristics depending on the nature of the business.
One challenging issues is the complexity in understanding the difference between each type of available business meaning that choosing the right types of business entity is not only the first question that needs to be answered but also one of the first challenges for a fledgling businesses.
In general, there are two main types of business entities, incorporated entities and unincorporated entities. It is common for most people to choose an incorporated entity as this creates a clear separation between the assets of the company and the assets of the entity’s founders and management.
However, on the downside, the procedures for establishing an incorporated entity are more complicated compared to unincorporated entities such as Professional Partnerships, Firma Partnerships, and Limited Partnerships.
In addition, there are several types of incorporated entities each with different characteristics depending on the purposes and objectives of the entity itself, namely: Limited Liability Company; Foundation; Cooperative; Public Corporation (Perusahaan Umum); Association; Higher Educational Entity; Church, and so forth.
Unfortunately, the provisions governing each of the abovementioned business entities are spread in different level regulations, some even dating back to the Dutch colonial era. The difficulty in understanding incorporated entities is further increases as the general provisions covering this area of law are only set out in 12 articles in the Indonesian Civil Code (Art. 1653 – 1666) and some doctrines from Indonesian jurists.
This week’s Indonesian Law Digest (ILD) will discuss the general characteristics of incorporated entities as well as the procedures to establish them as well as the organizational structure of Limited Liability Companies, Foundations, Cooperatives, Associations, Higher Educational Entities, and Churches.
This ILD will be available here
The type of business entity to use when starting a business is one of the first questions that needs to be answered by every person who wishes to establish a new organization or company. Indonesian laws and regulations provide for several types of business entities with different characteristics depending on the nature of the business.
One challenging issues is the complexity in understanding the difference between each type of available business meaning that choosing the right types of business entity is not only the first question that needs to be answered but also one of the first challenges for a fledgling businesses.
In general, there are two main types of business entities, incorporated entities and unincorporated entities. It is common for most people to choose an incorporated entity as this creates a clear separation between the assets of the company and the assets of the entity’s founders and management.
However, on the downside, the procedures for establishing an incorporated entity are more complicated compared to unincorporated entities such as Professional Partnerships, Firma Partnerships, and Limited Partnerships.
In addition, there are several types of incorporated entities each with different characteristics depending on the purposes and objectives of the entity itself, namely: Limited Liability Company; Foundation; Cooperative; Public Corporation (Perusahaan Umum); Association; Higher Educational Entity; Church, and so forth.
Unfortunately, the provisions governing each of the abovementioned business entities are spread in different level regulations, some even dating back to the Dutch colonial era. The difficulty in understanding incorporated entities is further increases as the general provisions covering this area of law are only set out in 12 articles in the Indonesian Civil Code (Art. 1653 – 1666) and some doctrines from Indonesian jurists.
This week’s Indonesian Law Digest (ILD) will discuss the general characteristics of incorporated entities as well as the procedures to establish them as well as the organizational structure of Limited Liability Companies, Foundations, Cooperatives, Associations, Higher Educational Entities, and Churches.
This ILD will be available here
Robert Sidauruk
The type of business entity to use when starting a business is one of the first questions that needs to be answered by every person who wishes to establish a new organization or company. Indonesian laws and regulations provide for several types of business entities with different characteristics depending on the nature of the business.
One challenging issues is the complexity in understanding the difference between each type of available business meaning that choosing the right types of business entity is not only the first question that needs to be answered but also one of the first challenges for a fledgling businesses.
In general, there are two main types of business entities, incorporated entities and unincorporated entities. It is common for most people to choose an incorporated entity as this creates a clear separation between the assets of the company and the assets of the entity’s founders and management.
However, on the downside, the procedures for establishing an incorporated entity are more complicated compared to unincorporated entities such as Professional Partnerships, Firma Partnerships, and Limited Partnerships.
In addition, there are several types of incorporated entities each with different characteristics depending on the purposes and objectives of the entity itself, namely: Limited Liability Company; Foundation; Cooperative; Public Corporation (Perusahaan Umum); Association; Higher Educational Entity; Church, and so forth.
Unfortunately, the provisions governing each of the abovementioned business entities are spread in different level regulations, some even dating back to the Dutch colonial era. The difficulty in understanding incorporated entities is further increases as the general provisions covering this area of law are only set out in 12 articles in the Indonesian Civil Code (Art. 1653 – 1666) and some doctrines from Indonesian jurists.
This week’s Indonesian Law Digest (ILD) will discuss the general characteristics of incorporated entities as well as the procedures to establish them as well as the organizational structure of Limited Liability Companies, Foundations, Cooperatives, Associations, Higher Educational Entities, and Churches.
This ILD will be available here
The type of business entity to use when starting a business is one of the first questions that needs to be answered by every person who wishes to establish a new organization or company. Indonesian laws and regulations provide for several types of business entities with different characteristics depending on the nature of the business.
One challenging issues is the complexity in understanding the difference between each type of available business meaning that choosing the right types of business entity is not only the first question that needs to be answered but also one of the first challenges for a fledgling businesses.
In general, there are two main types of business entities, incorporated entities and unincorporated entities. It is common for most people to choose an incorporated entity as this creates a clear separation between the assets of the company and the assets of the entity’s founders and management.
However, on the downside, the procedures for establishing an incorporated entity are more complicated compared to unincorporated entities such as Professional Partnerships, Firma Partnerships, and Limited Partnerships.
In addition, there are several types of incorporated entities each with different characteristics depending on the purposes and objectives of the entity itself, namely: Limited Liability Company; Foundation; Cooperative; Public Corporation (Perusahaan Umum); Association; Higher Educational Entity; Church, and so forth.
Unfortunately, the provisions governing each of the abovementioned business entities are spread in different level regulations, some even dating back to the Dutch colonial era. The difficulty in understanding incorporated entities is further increases as the general provisions covering this area of law are only set out in 12 articles in the Indonesian Civil Code (Art. 1653 – 1666) and some doctrines from Indonesian jurists.
This week’s Indonesian Law Digest (ILD) will discuss the general characteristics of incorporated entities as well as the procedures to establish them as well as the organizational structure of Limited Liability Companies, Foundations, Cooperatives, Associations, Higher Educational Entities, and Churches.
This ILD will be available here