Liability of Single-Member Limited Liability Company on Its Sole Ownership Structure

Abstract

The Single-Member Limited Liability Company (PT Perorangan) represents an innovation for individuals who wish to operate a legally incorporated business professionally. The consequence of having a legal entity is that it can act as a legal subject to perform legal acts with the separation of assets from the owner’s personal wealth. Problems may arise due to sole ownership of shares and the absence of a supervisory board; operationally, the owner may serve as director or appoint an employee to hold that position. This study aims to formulate and provide answers regarding the Principle of Limited Liability in PT Perorangan. The research employs a normative juridical method, analyzing based on legal principles and statutory regulations as guidelines for problem-solving. The results indicate that PT Perorangan can be an option for medium-scale entrepreneurs to start their business under a professional legal entity form. The founder’s liability is limited only to the capital invested; however, in cases of unlawful acts, Piercing the Corporate Veil applies. Founders are personally liable with their assets to fulfill obligations or compensate losses.