Sole Proprietorship Legal Entity in Establishment of Small Medium Business in Indonesia

  • Aliya Sandra Dewi and Dian Fitriana
  • Show Author Details
  • Aliya Sandra Dewi

    Student at University of Pamulang, Indonesia

  • Dian Fitriana

    Student at University of Pamulang, Indonesia

  • img Download Full Paper


In order to make it easier for the public to establish a company, the Government recently rolled out the concept of a sole proprietorship through a derivative of Law Number 11 of 2020 concerning Job Creation, which is nothing new for several countries in the world. This concept has been known in various countries, but with different names. The United States, Canada and Singapore call a sole proprietorship a sole proprietorship, while in the UK it is called a Sole Trader. In Vietnam it is known as Private Enterprise, and in the Netherlands it is known as Eenmanszaak. The concept of a sole proprietorship has various advantages, as regulated in Government Regulation Number 8 of 2021 concerning Company's Authorized Capital and Registration of Establishment, Amendment, and Dissolution of Companies that Meet the Criteria for Micro and Small Businesses. The Job Creation Law changes the ratification regime to a registration regime, including for this sole proprietorship. These are the legal facts found by the author who have concepts that are relevant to the development of Legal Studies in reviewing sole proprietorship.


Research Paper


International Journal of Law Management and Humanities, Volume 5, Issue 3, Page 1430 - 1444


Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (, which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.


Copyright © IJLMH 2021