A Legal Paradigm regarding the Establishment of Limited Liability Company in Indonesia and Malaysia

Abstract

Most guidelines issued by government agencies, such as business license applications and immigration procedures, merely concentrate on companies, not Limited Liability Companies. However, a Limited Liability Company is a legal entity with legal consequences; besides Limited Liability Company can bring legal actions and have legal rights and obligations. In this context, there is an issue with establishing a Limited Liability Company. Therefore, this paper aims to analyze the issue and legal aspect of the Limited Liability Company in both countries, i.e., Malaysia and Indonesia. The method employed in this article is qualitatively based. Therefore, this paper will analyze the materials to study the outlines of legal issues in Limited Liability Companies and focus on Indonesia and Malaysia’s jurisdiction. This paper found an issue in the legal aspect of a Limited Liability Company, which can be seen in Indonesia and Malaysia’s jurisdiction. In conclusion, it is recommended that it is vital to appreciate and understand the legal aspect of a Limited Liability Company in Indonesia and Malaysia’s jurisdiction, especially regarding the protection of creditors. The improvement is suggested to enhance the understanding of the legal paradigm of a Limited Liability Company.