The Importance of Business Legality for Freelancers

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This article was written with the assistance of Artificial Intelligence (AI) and went through a manual review process by the vOffice team before publication.

As a freelancer, you might think that working independently without a business entity is enough. However, having business legality is not just a formality—it’s a strategic step to protect your business, enhance credibility, and open up broader opportunities.

Business legality proves that you are running a legitimate business. It gives more trust to clients and business partners, while also preventing legal risks that could arise from work contracts or delayed payments.

Read Also: What is Freelance: Definition, Examples, Advantages

Benefits of Business Legality for Freelancers

Here are some reasons why it’s important for freelancers to handle business legality:

  1. Legal Compliance – Avoid legal issues by operating according to applicable regulations.
  2. Contract Protection – Business legality strengthens your position in contracts with clients.
  3. Access to Financing – Enables loan or funding applications that are only available to businesses with legal status.
  4. Increased Credibility – Clients trust freelancers who have legalized their business.
  5. Business Development Opportunities – Makes it easier to collaborate with large companies that require business partners to have a legal entity.

Read Also: 12 Types of Freelance Jobs and Their Examples

Regulations Governing Freelancers

Freelancer legality in Indonesia is governed by several regulations, including:

  • Law No. 11 of 2020 on Job Creation – Regulates business licensing and labor issues.
  • Government Regulation No. 35 of 2021 – Regulates work relationships and freelancer contracts.

Read Also: 10 Ways to Work Freelance, Start Your Career Now!

Individual Limited Liability Company (PT) and Virtual Office: The Right Choice for Freelancers

One of the most suitable forms of business legality for freelancers is the Individual Limited Liability Company (PT). An Individual PT allows you to own a business entity without the need for a business partner, unlike a CV or regular PT, which requires at least two founders.

Benefits of an Individual PT:

  • Can be established by just one person
  • Has stronger legal protection compared to a sole proprietorship
  • Can have a company account for business transactions
  • Easy to apply for a business license and Business Identification Number (NIB) through the Online Single Submission (OSS) system

To simplify the legalization process, you can rely on vOffice. The PT Company Registration Service from vOffice includes a comprehensive range of services such as:

  • Free Consultation
  • PT Name Check
  • Company Account Opening
  • EFIN, SK Kemenkumham, NIB, NPWP, and SKT

Establish a Company

Moreover, for freelancers who want business legality without renting a physical office, a virtual office from vOffice could be the best solution. By using vOffice’s virtual office, you can get:

  • Strategic business address in an official office zone
  • Business phone number to enhance professionalism
  • Legal services (deed, NPWP, NIB, SIUP, etc.)
  • PKP processing to increase business collaboration opportunities

vOffice offers flexible packages with fast setup, within 24 hours. With this service, freelancers can focus on business development without worrying about company domicile.

vOffice virtual office

For more details, visit the vOffice Virtual Office page.

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