Private Limited Company in Indonesian Positive Law: Elaborating The Basic Concept of Corporate Law, Comparison to Other Countries and Its Development

Abstract

The concept of a private limited company was first introduced in the Job Creation Law which is different from the concept of a company in the previous regulation. It is important to dig deeper into the concept of a private limited company: is it possible for a company legal entity to only have a single shareholder or it must be established by a minimum of 2 (two) persons as shareholders? Therefore, this paper applied the normative juridical method, which is believed to be able to answer the aforementioned problem. This paper reviewed the concept of a private limited company juxtaposed with the concept of a company that was in effect before the Job Creation Act and elaborated on the development of company regulations in Indonesian Law. In conclusion, it is found that the basic concept of a private limited company (as a legal entity) can be established by 1 (one) person, as the founder and sole shareholder, that is, as long as the establishment of the company is authorized by the state. Furthermore, the development of company legal arrangements in Indonesian law shows that the law must be responsive to the development of society. This is evident from several changes in the regulation of company law in Indonesia to accommodate the needs of economic development in society.