In addition to Limited Liability Companies (PT), business people often choose other forms of business entities such as Commanditaire Vennootschap (CV). Yes, establishing a CV can give business actors freedom in managing the management and structure of the company. However, it cannot be denied that there are risks that need to be understood and managed wisely. In this case, it is important to thoroughly understand these risks so that the decision to establish a CV can be made with a deep understanding of the challenges and opportunities that may be faced. So, what are the risks of setting up a CV? And how to minimize these risks? Let’s see the full explanation here.
CV at a glance
A Limited Liability Partnership (CV) is a form of partnership business entity established by two or more people in which some members have unlimited liability and others have limited liability. Therefore, the definition of CV is a business entity established by two or more people to achieve a common goal, and the level of involvement of each member varies. We can recognize a business entity as a CV by looking at the characteristics of the business entity. The following are the characteristics of a CV: There are two types of membership in a CV: active allies and passive allies. Active allies are parties who play a role in running the company, while passive allies are parties who only play a role in investing business capital without participating in running the company. The responsibilities of active allies are unlimited. The responsibility of passive allies is only as much as the capital invested in the company.
Types of CVs
In addition to characteristics, CVs can also be divided into several types. Here is the explanation:
CV Murni
A pure CV is a type of CV in which there is only one active ally, while all other allies are passive.
Mixed CV
A mixed CV is a type of CV that is derived from the firm form if the firm requires additional capital. The allies of the firm are active allies, while the other allies become passive allies.
CV Bersaham
A CV with shares is a type of CV that issues non-tradable shares, where both active and passive allies take one or more shares.
READ ALSO: This is the difference between PT and CV that you must know!
The shares were issued to prevent the occurrence of frozen capital because in a CV it is not easy to withdraw the deposited capital.
Advantages of Establishing a CV
Establishing a CV brings a number of advantages that can be considered by prospective business owners. Here are some of the main advantages of establishing a CV:
Relatively Easy to Establish
CVs have a relatively simple establishment process and do not require complicated formal requirements. This makes it easier for entrepreneurs to start their business without too many administrative obstacles.
Has a large capital because it was founded by many parties
One of the advantages of a CV is its ability to raise substantial capital. As a business entity that involves two types of allies, a CV can combine capital from different parties to start and grow a business.
Easy to Get Loan Credit
As a form of business entity, establishing a CV can be one of the choices of business actors to establish a more credible business other than a PT. so that obtaining loan credit for capital purposes or business expansion can be easier than businesses run by individuals or entities with simpler structures.
What are the Risks of Establishing a CV?
Although it has several advantages, it still comes back to all forms of business that have risks. Business owners must be prepared to face shortcomings that may hinder the running of the company. Here are some risks that may be faced in establishing a CV:
Limited Liability
While the liability of passive allies is limited to the extent of their capital contribution, the risk remains for the active allies who take full responsibility. So that in the event of legal or financial problems in the CV, it is the active ally who faces significant financial consequences. Therefore, it is important for the parties to have a clear understanding of their responsibilities in the CV and ensure that these risks are properly managed.
Conflict Between Partners
As explained, a CV is a form of business entity established by two parties who act as active allies and passive allies. The different roles and responsibilities of both can lead to potential conflicts between the parties. These conflicts can interfere with operational efficiency and business decisions made.
Limited Resources
Although CVs can raise capital from various parties, but sometimes the available resources may remain limited. This can be challenging as businesses need adequate capital, labor, and infrastructure to operate effectively.
Uncertain Continuity
CVs may experience uncertainty regarding business continuity. Changes in ownership, internal problems, or changes in market policies can cause business uncertainty that can affect the stability and continuity of the company. Moreover, CV dissolution is also fairly easy. If the allies wish for dissolution or a party resigns, the CV can be dissolved.
Capital that has been deposited is difficult to withdraw
The decision to withdraw capital by passive allies is difficult without the consent of all parties involved. This can make it difficult to manage liquidity and financial flexibility, especially if one party requires a return of capital.
How to Minimize the Risks of Establishing a CV?
Although CVs offer a number of benefits and conveniences, business owners need to be aware of the risks that affect the balance of the business. However, all of these risks can be prevented and minimized with the following measures:
Give More Advantages to Active Allies
Dividing the profits more for active allies is not the wrong way to go. This is because active allies have more duties and are fully responsible for personal assets. Not only that, active allies are also responsible for an action, such as entering into an agreement with another party regarding the development of the CV. Meanwhile, passive allies only invest capital, not taking any action. From this, it can be assessed that giving greater profits to active allies is quite fair. This method can also keep the company conducive because active allies have the right to enjoy the results of their hard work.
Always Maintain Communication
Dealing with many people is not an easy matter, if the company is in a growing phase. There will certainly be many problems that arise. To avoid this, the founding members of the CV must maintain good communication. The existence of established communication makes it easier to take steps for the fate of the next company.
Pay Attention to Employee Welfare
Jack Ma, the founder of Alibaba, once divulged the big secret of his company, which is how he pays attention to employee welfare. This can be copied to extend the life of a CV, considering that the continuity of a CV is uncertain, it can last or vice versa. Paying attention to employee welfare, including salary, health and other benefits, will increase employee morale and of course increase work ethic, which will result in productivity and company turnover.
Fulfill CV Legality
Ensuring legality compliance is a crucial step in minimizing CV risks. As for the establishment of a CV, some of the legality documents needed include the deed of establishment, Business Identification Number (NIB), and Taxpayer Identification Number (NPWP). By fulfilling legality, companies can reduce the potential for legal and administrative problems.
KH Contact
By now, you should know that aside from the benefits in terms of flexibility and management, setting up a CV also carries a number of risks. Therefore, good management, effective communication between parties, and constant monitoring of business conditions are key to managing risks and enhancing CV success.
READ ALSO: CV Dissolution at a Glance, What are the Requirements and Procedures?
In addition, it is also important to ensure compliance with legal aspects to prevent legal risks, sanctions, and other administrative issues. To simplify the CV process, KH pals can contact Kontrak Hukum. We provide easy, fast, and secure business entity establishment services with authorized and experienced legal professionals and notaries. Not only that, the CV establishment service at Kontrak Hukum also includes legality documents such as deeds, SK, NIB, and NPWP, you know! Let’s make your CV establishment and affairs easier by visiting the KH Services – CV page. If you have questions about other business entity needs, you can also consult for free at Tanya KH and send a direct message (DM) to Instagram @kontrakhukum.
