The Greater Hub Business Incubator, School of Business Management, Institut Teknologi Bandung (SBM ITB), held another online incubation session on April 23, 2026. This Zoom session covered basic legal aspects for startups, including business contracts, legal structures, and synchronizing business permits.
This session featured legal practitioner Achmad Billy Zulqiyami, who explained that many early-stage startups do not yet have a formal business entity, such as a limited liability company (PT). However, legal aspects like entity status and business contracts are essential foundations for operating a business. According to Achmad, contracts not only contain legal provisions but also define the commercial agreements between the parties involved.
“A contract is not merely a legal document; it also outlines the business agreement, specifying roles, timing, and payment mechanisms,” said Achmad.”
He also discussed several types of agreements commonly used by startups, including vendor, service, and joint venture agreements. Each agreement has distinct characteristics, depending on the industry and the business model being implemented.
Achmad explained the requirements for a contract to be valid. A contract is considered valid if there is mutual agreement, the parties possess legal capacity, the object of the contract is clear, and its purpose does not conflict with the law.
“As long as these four elements are met, the contract is essentially valid,” he said.
The session concluded with a question-and-answer session. One participant asked about efficient ways to manage contracts with hundreds of partners on a single platform. Achmad suggested using standard contracts that can be applied uniformly across multiple parties, provided they adhere to the principles of mutual agreement.
Through this session, the Greater Hub incubator participants gained practical insight into the importance of building a legal foundation from the outset to enable startups to grow more sustainably.
