Which is Better Between PT or CV In Registering Your Company Form in Indonesia

Before discussing which is better between PT or CV in registering companies in Indonesia, it's good you know a little what PT and CV is.

PT is a legal entity to run a business that has capital consisting of shares. The company is owned by shareholders, and the company's shares are not registered to certain owners, so that they may be traded on the public stock market. (source: Wikipedia)

CV is a partnership established by a person or persons who entrusts money or goods to a person or persons who run the company and act as a leader. CVs are usually established by deed and must be registered. But this fellowship is not a legal entity (same as a firm), so it does not have its own wealth. (source: Wikipedia)

PT and CV certainly have advantages and disadvantages of each. Here are some benefits of PT and CV that you can consider to the needs of your own company, so you will be able to choose between PT or CV to register your company in Indonesia.


1. More Evident Ownership System
Ownership System in PT is prepared based on share ownership. This will be very helpful if at anytime you want to sell your ownership.

2. Broader Business Access
If you want the company to have wider business access such as following the project, then setting up PT is the right choice. Most public and private tender projects only accept the participation of companies with the form of PT.

3. More Diverse Business Activity
Several business fields are required by law to use a business entity to operate. If you want to build a business in specific areas such as Bank, Hospital, outsourcing services or foreign investment, then you are advised to choose a business entity PT.

4. Having a Legal Entity
The business form of PT is authorized by Kemenkumham (Ministry of Law and Human Rights). This is actually beneficial because the business form of PT is safer in law.



1. There is no Minimum Capital
To establish a PT, you must start a business with a minimum deposit of over 50 million rupiah. But if you set up a CV, you do not have to have the minimum capital and can remain standing and operating.

2. More Appropriate Company Name
Often in making PT, your name choice must be replaced as it has been used by other companies. But if setting up a CV, this rule does not apply so you can use the desired name to do your business activity.

3. Faster Decision Making System
Unlike the PT where major decision-making must be approved first through the AGMS (General Meeting of Shareholders), this rule does not apply in the business form of CV. So, if the company is in a situation where a quick decision must be made, the CV can take a decision directly without having to go through the process of meeting and execute for the benefit of the company. This also applies to changes to the articles of association. Owners can directly make changes deed to make changes deed without conducting board meetings.

4. Easier Taxation System
CV is not a business entity with legal entity. This may seem a drawback, but it is actually beneficial in terms of taxes. The CV earnings received at the end of the year are taxed only once for corporate taxes. The share profits received by the owner of the CV is not taxed and is included in nonobject PPh (Income Tax).


In the end the entrepreneur must re-adjust to the needs of the company itself, just decided to choose a company form between PT or CV, each of which has advantages and disadvantages.






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