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Advocating Legal Certainty in Status Transition of Individual Companies Exceeding MSEs Criteria to Limited Liability

Indonesian Journal of Advocacy and Legal Services · Vol. 7 No. 1 (2025) · hlm. 121–148

DOI
10.15294/ijals.v7i1.22263
ISSN
2686-2611, 2686-2085
Terbit
2025-07-20
Penerbit
Universitas Negeri Semarang
Bahasa
eng
Lisensi
creativecommons.org/licenses/by-nc-sa/4.0

Abstrak

The enactment of Law Number 6 of 2023, concerning the Stipulation of Government Regulations in Lieu of Law Number 2 of 2022 on Job Creation, introduced the Individual Company as a legal entity designed to empower Micro and Small Enterprises (MSEs). This provision enables the establishment of a company by a single individual, a departure from the traditional requirement of at least two shareholders. The Job Creation Law, supported by Government Regulation Number 8 of 2021, outlines that an Individual Company is created through a Statement of Establishment, without the need for a Notary Deed, in line with the provisions for MSEs as stipulated in Government Regulation Number 7 of 2021. However, this legal framework creates challenges when an Individual Company exceeds the MSE criteria or gains more than one shareholder. In such cases, the company must transition into a Limited Liability Company (LLC), a process that requires the drafting of a notary deed and registration through the Ministry of Law and Human Rights’ online AHU system. This research focuses on advocating for legal certainty in the status transition of Individual Companies to Limited Liability Companies, which currently involves the dissolution of the original entity before the new LLC can be formed. The lack of a clear, comprehensive legal mechanism for this transition causes significant legal uncertainty. This paper examines the gaps in the existing legal framework and proposes solutions to streamline the conversion process, eliminating the need for dissolution. By advocating for legal certainty in the status transition, this research contributes to the broader discourse on improving the General Legal Administration system, ensuring that the legal status of businesses aligns with their evolving needs, and facilitating smoother business expansion and growth.

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  • Islamic University of Riau
  • Padjadjaran University
  • Inha University
  • Newcastle University
  • State University of Semarang
  • Islamic University of Indonesia
  • Universitas Muhammadiyah Palu
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Rekan penulisOrganisasiArtikel bersama
Fadhel Arjuna AdindaPadjadjaran University8
John WoodwardNewcastle University3
Rani Fadhila SyafrinaldiIslamic University of Riau3
Ridwan ArifinState University of Semarang3
David HardiagoIslamic University of Riau3
Suparto SupartoIslamic University of Riau2
Maisa MaisaUniversitas Muhammadiyah Palu2
Teguh Rama PrasjaIslamic University of Riau2
Mohd Izzat Mohd Abd ShukurKolej Profesional MAIWP2
Esy KurniasihIslamic University of Riau1
Selvi AfrianiIslamic University of Riau1
Eman SuparmanPadjadjaran University1
Ema RahmawatiPadjadjaran University1
Bambang Utoyo SutiyosoIslamic University of Indonesia1
David HardiagoIslamic University of Riau1
SyafrinaldiIslamic University of Riau1
M. MusaIslamic University of Riau1
Mega Ardina PauckDortmund University of Applied Sciences and Arts1
Suparto SupartoIslamic University of Riau1
Deni Jaya SaputraIslamic University of Riau1
Astri Ayu PurwatiInstitut Bisnis dan Teknologi Pelita Indonesia1
Zulfadli HamzahIslamic University of Riau1
Souad Ahmed EzzeroualiDhofar University1

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Sumber metadata: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/ijals/oai, pertama di-harvest 5 Nov 2026, terakhir terlihat 8 Nov 2026.
Metadata asli (oai_dc) 
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	<dc:title xml:lang="en">Advocating Legal Certainty in Status Transition of Individual Companies Exceeding MSEs Criteria to Limited Liability</dc:title>
	<dc:creator xml:lang="en">Wiriatma, Dodo Wiradana</dc:creator>
	<dc:creator xml:lang="en">Admiral, Admiral</dc:creator>
	<dc:creator xml:lang="en">Hamzah, Rosyidi</dc:creator>
	<dc:creator xml:lang="en">Febrianto, Surizki </dc:creator>
	<dc:creator xml:lang="en">Syafrinaldi, Syafrinaldi</dc:creator>
	<dc:creator xml:lang="en">Hyeonsoo, Kim</dc:creator>
	<dc:subject xml:lang="en">Legal Certainty</dc:subject>
	<dc:subject xml:lang="en">Individual Company</dc:subject>
	<dc:subject xml:lang="en">Micro and Small Enterprises (MSEs)</dc:subject>
	<dc:subject xml:lang="en">Limited Liability Company</dc:subject>
	<dc:subject xml:lang="en">Business Status Transition</dc:subject>
	<dc:description xml:lang="en">The enactment of Law Number 6 of 2023, concerning the Stipulation of Government Regulations in Lieu of Law Number 2 of 2022 on Job Creation, introduced the Individual Company as a legal entity designed to empower Micro and Small Enterprises (MSEs). This provision enables the establishment of a company by a single individual, a departure from the traditional requirement of at least two shareholders. The Job Creation Law, supported by Government Regulation Number 8 of 2021, outlines that an Individual Company is created through a Statement of Establishment, without the need for a Notary Deed, in line with the provisions for MSEs as stipulated in Government Regulation Number 7 of 2021. However, this legal framework creates challenges when an Individual Company exceeds the MSE criteria or gains more than one shareholder. In such cases, the company must transition into a Limited Liability Company (LLC), a process that requires the drafting of a notary deed and registration through the Ministry of Law and Human Rights’ online AHU system. This research focuses on advocating for legal certainty in the status transition of Individual Companies to Limited Liability Companies, which currently involves the dissolution of the original entity before the new LLC can be formed. The lack of a clear, comprehensive legal mechanism for this transition causes significant legal uncertainty. This paper examines the gaps in the existing legal framework and proposes solutions to streamline the conversion process, eliminating the need for dissolution. By advocating for legal certainty in the status transition, this research contributes to the broader discourse on improving the General Legal Administration system, ensuring that the legal status of businesses aligns with their evolving needs, and facilitating smoother business expansion and growth.</dc:description>
	<dc:publisher xml:lang="en">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2025-07-20</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/journals/ijals/article/view/22263</dc:identifier>
	<dc:identifier>10.15294/ijals.v7i1.22263</dc:identifier>
	<dc:source xml:lang="en">Indonesian Journal of Advocacy and Legal Services; Vol. 7 No. 1 (2025): The Global Challenges on Advocacy and Law Enforcement; 121-148</dc:source>
	<dc:source>2686-2611</dc:source>
	<dc:source>2686-2085</dc:source>
	<dc:source>10.15294/ijals.v7i1</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/journals/ijals/article/view/22263/5017</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2025 Dodo Wiradana Wiriatma, Admiral Admiral, Rosyidi Hamzah, Surizki  Febrianto, Syafrinaldi Syafrinaldi, Kim Hyeonsoo (Author)</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by-nc-sa/4.0</dc:rights>
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