Rights of Business Owners Who Are Active Partners
Certain businesses in Indonesia are partnerships. The owners of partnerships include silent partners and active partners. Silent partners have fewer rights than do active partners. This is because silent partners only invest in the business’s operations; they are completely uninvolved in the running of the business itself. Conversely, active partners are involved in the management and operations of the business. They take a direct role in running the partnership. Active partners of an Indonesian partnership also have the right to engage in business transactions with third-party entities for the benefit of the business. This right is important because certain business activities require input and assistance from external sources. By exercising this right, active partners can leverage their business interactions conducted with third-party sources to increase the overall profitability and revenue of the partnership, make it easier for the business to receive a loan, increase the viability of any plans for future business expansion, and give the partnership a higher level of credibility.
If you are interested in starting a partnership or any other business entity in Indonesia, we at Paul Hype Page & Co can be of assistance to you. Our incorporation team will ensure that the process of starting your business will be completed as smoothly as possible. We will even help you attend to all your compliance needs as necessary.
Rights of Business Owners Who are Shareholders
Certain businesses in Indonesia allow the owner of the company to also hold shares in it. In such a case, the business owner receives the same rights to which all shareholders of the company are entitled. One of these rights is the ability to attend general meetings of shareholders (GMS) and vote when a vote is called during a GMS. Another right is the right to receive dividend payments and any other remaining assets if the company in question ever has to be dissolved. All shareholders, including shareholders who are business owners, also have the right to sue their company in a District Court if they believe that the company has caused them to suffer unjust losses through actions approved during a GMS or by the Board of Commissioners or Board of Directors. Most Indonesian companies’ Articles of Association also grant all shareholders, including those who are business owners, the right to refuse to refuse to purchase any shares held by other shareholders.
Intellectual Property Rights
All business owners in Indonesia are entitled to specific intellectual property rights. The Indonesian government has in recent years been increasing its emphasis on the protection of intellectual property. The government is constantly updating legislation related to intellectual property rights so that such rights in Indonesia will be in line with standards of such rights in the region as well as around the world.
Business owners in Indonesia can use any of four methods to protect their intellectual property rights. These methods are trademarks, patents, industrial designs, and copyrights. Trademarks are used by companies as a means of distinguishing all of those companies’ products from those of other companies. The Industrial Design Law is the piece of legislation which governs all trademarks in Indonesia. A registered trademark is protected for 10 years after it is first issued. Each renewal of this registration extends the protection period by 10 more years; the number of renewals allowed is unlimited. All trademarks in Indonesia are to be registered with the Directorate General of Intellectual Property Rights.
Patents are rights granted to business owners who have created a new product so that they may use it for either commercial or exclusive purposes. In Indonesia, either simple patents or standard patents may be received by a business owner. Simple patents take two to three years to process and have validity periods of 10 years. Standard patents take three to five years to process, have validity periods of 20 years, and provide greater levels of protection of intellectual property rights. In either case, applicants are to specify the scope of the protection which they desire as well as the technical description of the invention before they may receive a patent. In Indonesia, all patents are to be registered with the Directorate General of Intellectual Property Rights.
Rights regarding industrial designs are those given to business owners who intend to prevent others from using their business design for commercial purposes in an unauthorized manner. The Indonesian Design Act is the law which defines and governs all industrial designs in Indonesia. The first person to file for the right to an industrial design in Indonesia is the only person allowed to have that right. All rights related to industrial designs are to be registered with the Directorate General of Intellectual Property Rights; however, only new and unpublished industrial designs will be accepted while multiple designs will be rejected. Applications typically take between two to three years to be accepted, while protections are usually granted for 10 years.
Copyrights are rights which grant their owners the exclusive rights to the publishing or reproduction of certain works. Copyrights in Indonesia apply to works such as books, computer programs, pamphlets, music, art, photography, cinematographic works, translations, interpretations, and databases, among others. Therefore, business owners whose business produces any of these works should seek to obtain copyrights so that their intellectual property rights will be adequately protected.
There are many different rights which could and should be used by business owners all over Indonesia. Proper understanding and use of these rights will ensure that the business owner and business alike have the adequate legal protections. They also prevent anyone from making unethical profits from anything to which the business owner is entitled. In general, business owners in Indonesia have many rights which they are not to be denied.