It turns out that a business entity can not only be established with the help of a lot of capital, because even a small MSME can build a business, of course the method of establishing this individual business must be in accordance with legal entities and domestic business provisions.

Why does the establishment of a sole proprietorship have to comply with a legal entity? Because so that the business you have is also registered and more trusted.

The way to set up a sole proprietorship is actually the same as building a business limited liability company with several investors, it's just that as the name implies, the method of establishing this individual business, the subject is only one person, namely the founder or the owner.

Individual Business Establishment Terms

How to set up a sole proprietorship, of course, must begin by taking into account every applicable condition. Before that, you also have to know what an individual business or a limited liability company (PT) is.

An individual limited company is a type of limited liability company with shares and capital from only one person, which of course makes this type of PT also held by one person who will serve as director of the company.

Quoted from several sources, the conditions that you must meet in establishing a sole proprietorship are as follows:

1. Founder of PT was established by one person who will serve as director and no commissioner
2. Have business activities, either macro or micro.
3. Already have an ID card means that you are 17 years old.
4. Making local PT or domestic PT, must consist of three syllables and do not contain foreign words.
5. Have a TIN.
6. Have a clear and real address for an individual company in accordance with current business operations
7. Business entities must have a legal entity by registering with the Ministry of Law and Human Rights.
8. Make a statement letter for the establishment of an individual company in accordance with the format contained in the attachment of PP No. 8 of 2021 regarding MSE capital.
9. Individual PTs are required to have authorized capital, issued capital, and also paid-up capital, which is at least 25% which must be proven by legal proof of payment, you can see the rules in PP No. 8 of 2021 regarding capital.

How to Create an Individual Business Establishment

1. The first way of establishing an individual business is of course founded by an individual.
2. Prepare documents such as TIN and KTO.
3. Prepare the requirements that will be included in the statement letter for the establishment of an individual company.
4. After the requirements are met, you can immediately make an individual company statement.
5. Submitting a corporate e-NPWP at the Tax Office, the company you are working with must have an NPWP. NPWP making can also be done online online
6. After making a deed of establishment at a notary to obtain proof of the status of a legal entity, it must be registered with the Ministry of Law and Human Rights, usually a notary will also carry out this registration.
7. The next way to set up an individual business is that you have to take care of a Business Identification Number through the Online Single Submission (OSS) institution. This NIB is useful as a company register, customs access, and import identification number.
8. The final step for establishing an individual business is to make a business license or SIUP, the requirements for making a SIUP are business domicile and also a company registration certificate issued together with the NIB.

What Should Be in the Deed of Establishment of a Business

• PT Name: You must prepare a PT name which consists of three syllables. You can also see the rules for using the PT name in PP 43/201, related to procedures for submitting and using the name of a limited company.
• The address of the PT must also be in accordance with the legal position in the municipality or district area that suits your business.
• The purpose and objectives of the business activities that your PT will operate.
• Determine the authorized capital, issued capital, and also the capital to be deposited.
• Determine also how long your company will be established.
• Complete complete data as founder and shareholder of individual PT.

You can do this way of establishing an individual business through legal consulting services  which usually has the services of making a PT, either the establishment of an individual business or an open PT. In fact, some of them can be done manually online. However, you also have to choose the services of an appropriate and trusted legal consultant.

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