A business entity established and owned by a village is designed to support the community in meeting their daily needs, enhancing their knowledge, and providing business and employment opportunities. This requires an institution capable of managing these activities effectively. The institution in question must be able to generate profits because the potential within a village is intended to promote the welfare of the local community. This study examines village institutions functioning as economic entities, commonly known as Village-Owned Enterprises (BUMDes). The (...) study also explores the legal status of these entities and their role in implementing programs aimed at building a prosperous society. The research findings confirm that BUMDes, as regulated by Government Regulation Number 11 of 2021 and the Regulation of the Minister of Villages, Development of Disadvantaged Regions, and Transmigration Number 3 of 2021, have legal entity status. This means that these institutions are recognized and regulated by law, allowing them to engage in business activities legally, while also being responsible for adhering to applicable laws and regulations. The village government wholly owns these business institutions, and their mission is to manage and develop the village's economic potential. Additionally, BUMDes are intended to create jobs, enabling village communities to meet their basic needs, increase their income, and advance the local economy. The legal framework governing these institutions must be a focus for stakeholders to ensure the creation of legal justice, certainty, and benefits. (shrink)