The Emergence of Legal and Tax Obligations when Establishing a Business Entity

The Emergence of Legal and Tax Obligations when Establishing a Business Entity

Legal and tax obligations are a provision offered by the administration who keeps fixing the order like doing synchronization between OSS system and SABH Menkumham

Establishing a business is way simpler nowadays after the presence of OSS (online single submission). To be more integrated with other portals, the local administration does synchronization between OSS system and SABH Menkumham. Once you gain the business license issued, there are some obligations you can’t miss out on along with it – legal and tax obligations. To shed light upon the terms, never hesitate to check out this clarification below.

 

 

Get to Know the Legal Obligation

Those who plan to establish a business entity must understand that legal obligation is the thing considered overriding. When it comes to the legal obligation, the business entity should go with two major obligations. The first one is nothing else but how the bookkeeping is done. In other words, it’s the basis of a company’s accounting system that can’t be taken for granted. The bookkeeping is regulated on Law number 8, year of 1997 article 6 on firm’s document.

 

The details on the bookkeeping are stipulated in article 2. The regulation clearly states that there are two major documents to save, i.e. financial documents and supporting documents. Financial documents include the company’s account, profit calculation, annual balance sheet, as well as the day-to-day transaction journal. Meanwhile, the supporting documents cover some additional notes beneficial to the company.

 

In addition to bookkeeping, a business entity should make enrollment or do registration so that the legal standing of it is clear according to the law issued by the Indonesian administration. There is an effective way to register named online single submission. The mechanism of this brand-new procedure is way easier compared to the conventional one.

 

 

How about the Tax Obligation?

The definition of tax obligation is clearly stipulated in Law number 28, year of 2007 article 1. It confirms that a tax is a form of responsibility for the country carried out by either an individual or business entity committing a violation based on the prevailing law indirectly for the people’s prosperity.

 

One of the common taxes applicable for both individual and business entity is the income tax. In point of fact, it refers to a tax received from the tax subject. Oftentimes, there are two basic terms in regard to this i.e. tax subject and tax object. Tax subject includes individual, business entity and permanent establishment while tax object is an income itself.

 

 

Types of Business Entities in Indonesia You Should Know

In essence, there are several types of business entity in Indonesia. Out of the common ones, PT or (Perseroan Terbatas) has a stable existence. It should be owned by at least two people. Uniquely, the one running for the company must not be an owner. The person can appoint someone trusted to lead the company. Besides PT, cooperation has been engraved in the Indonesian society for many decades. The growth and its development are based on collaboration among individuals.

 

In a nutshell, there are two basic considerations to understand when it comes to establishing a business entity, i.e. legal and tax obligations. The acts are a serious shape for appreciating the government who works hard in doing synchronization between OSS system and SABH Menkumham.

 

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