Studying Legal and Legal Aspects in Startup Business
Summary of the presentation of the Founder & CEO of Contract Law Rieke Caroline in the ULTRA DSLlaunchpad webinar session
Legal issues are still not widely understood by new startups. The lack of information and insight into various legal aspects often makes it difficult for startups to go further.
About founders agreement
Not only startups in Indonesia, understanding the problem founders agreement or agreements between startup founders have also been implemented by startups globally. This is important to make, so that later there will be accurate legal agreements related to matters that support business growth. Starting from IPR ownership, business activities, business capital, each party's capital deposit, profit sharing, rights and obligations of the parties, commitment to establishing a business entity, confidentiality, and dispute resolution.
"If at the time the startup was built, the founders had not found partner It is important to pay attention to this agreement between the founders when it is found later co-founder at startup. Understanding and making this agreement can help startups in the future," said Rieke.
In particular, the agreement between the founders can later help fellow founders to get legal protection, secure business, the rights and obligations between the parties become clear, reduce the scale of conflict risk and of course increase trust.
Another legal issue that startups must also pay attention to when building a business is registering a trademark or brand their startups. There are various categories that then must be considered, ranging from patents, brands, copyrights, to industrial designs. For brands that are in the name of a personal, group or company, in general they can get protection for 10 years. This means that every 10 years, startups are required to re-register.
If later the startup plans to expand overseas, the trademark registration must also be registered in the destination country. There are several forms of brands that must be registered, whether they are in 3D, words, the brand itself, logos or images, holograms, to sound.
"Brand is a very strong identity and becomes a person's memory. For this reason, it is important to build brand which will later stick in someone's memory," said Rieke.
In addition to registering a brand, it is important for a startup to register a class of goods. In this case related to the service or services offered. An example is platforms like Gojek besides offering applications, they also have services and transportation. While platforms like Legal Contracts apart from having apps, they also offer legal services.
Selection of PT or CV
Although both have similar properties, there are difference between CV and PT. In terms of rules and convenience, CV is more lax than that. CV owners can have an office anywhere, even at home, while PT must have an office in a commercial or office area. In terms of capital and the division of business assets, CV is also more flexible, but for PT it is mandatory to separate business capital and personal capital to be able to run a business under the umbrella of PT.
"Although it is simplified in terms of regulations for CV, it is much easier and certainly profitable to invest in PT. With complete legality, investors generally prefer PT to invest compared to CV," said Rieke.
For this reason, it is important for startups to clearly define the type of business they want to build. Basically, all of these processes must be observed to ensure that legal issues are accurate and of course follow the rules set for business.
Another interesting thing that was also discussed was the issue of the process of recruiting employees at startups. There are several important points which are then discussed. Among them are PKWTT (uncertain time work agreement for permanent employees). probation 3 months), PWKT (employment agreement for a specified period of time for contract employees for a maximum of 2 years), NDA (non disclosure agreement/confidentiality), Non-Compete (anti-competition), IP Ownership (IPR ownership), and ESOPs (employee stock ownership plan).
It is important for startups to understand and implement personnel issues, in order to avoid conflicts and problems in the future. Especially for startups that have just started, so that in the future they can find the right formula for the employee recruitment process, when it's time for the business to start growing.