The Status of Legal Entity of Nagari's Business Entity in District of Koto XI Tarusan, Pesisir Selatan Regency

Abstract

The formation of Nagari's Business Entity is a hope to become one of the new approaches to encourage and advance the economy in a region, especially in Nagari. The presence of Nagari's Business Entity is arguably still new in its existence, so that in practice several obstacles arise related to the formation process, namely imperfect and comprehensive laws covering the existence of Nagari's Business Entity in each Nagari. Nagari's Business Entity must also obtain definite legal justification if categorized as a legal entity. This can be seen from the legal entities of Limited Liability Companies, Foundations and Cooperatives, all of which are legal entities when they get approval from the relevant ministers. The legality of the form of legal entity became a problem in the establishment of Nagari's Business Entity. In Koto XI Tarusan District, each Nagari has established Nagari's Business Entity and there is a Joint Nagari's Business Entity, but there is still inaccuracy in choosing the appropriate legal entity construction for Nagari's Business Entity. In this research, the researcher uses the research method that is the normative juridical legal method. The research result shows that the importance of the legal entity in the establishment of Nagari's Business Entity. In practice, the determination of the legal entity of Nagari's Business Entity in the law does not yet have a strong legal basis. Until now, there is still no specific regulation that clearly and expressly stipulates the legal entity of Nagari's Business Entity.