The word company is certainly familiar to our ears. However, did you know that in Indonesia there are various types of companies? Yup in Indonesia itself, the types of companies are quite diverse so that they can be categorized based on ownership, form of business entity, and activities. To understand more about the types of companies, let’s see the explanation below!
What is a Company?
Before knowing what types of companies exist in Indonesia, KH pals need to first understand the meaning of the company itself. According to the Big Indonesian Dictionary (KBBI), a company is an activity organized in an organized manner or with equipment, with the aim of making a profit. The company is a place where the production of goods and / or services is carried out and then sold to the public. The purpose of the company is to utilize human resources and natural resources, to produce a good or service, in order to create as much profit as possible. A company is also defined as an organization that is a legal entity, which conducts business or transactions. In addition to functioning to provide benefits for all parties involved in it, the company is also the driving force of a country’s economy. This is because companies will utilize labor to produce goods and/or services so that they can be sold to the public.
Types of Companies in Indonesia by Ownership
The first types of companies in Indonesia can be categorized based on the ownership of the company, namely:
Country
A state-owned company means that the capital of the company is owned by the state, either wholly or partly from state assets. Examples of state-owned companies are SOEs, service companies, and public companies. In addition, whatever decisions the government makes, the company must obey and follow them.
Private
A private company is a type of company whose capital comes from a group of people or a non-governmental organization. Another name for a private company is a closed company, as it is privately owned. Usually these companies do not offer or trade shares to the public through the stock market, but are offered, owned and traded, or privately financed. Examples of private companies in Indonesia are PT Panasonic Gobel Indonesia, PT Rosalia Indah Transport, PT Indosiar Visual Mandiri, and others.
Types of Companies in Indonesia Based on Their Activities
Each company has different objectives and activities, depending on the industry or field of activity. Here are some types of companies based on their activities:
Extractive Company
This type of company directly extracts and utilizes natural resources such as mining, fishing in the open sea, legal logging, seaweed collection, and so on. For further explanation about extractive companies, KH friends can visit the page https://kontrakhukum.com/article/usaha-ekstraktif.
Agrarian Company
This type of company is engaged in natural resource management such as agro-industrial companies, plantation companies, fishery companies, land, and livestock.
Service Company
This type of company sells or provides services to the public. Examples are banks, insurance, transportation, accounting firms, and so on.
Trading Company
The main activity of this type of company is to buy goods from suppliers and then resell them to consumers with the aim of making a profit. Examples of trading companies are shops, supermarkets, and so on.
Industrial/Manufacturing Company
Unlike trading companies that buy finished goods from suppliers for resale, this type of company buys raw materials to be converted into final products and then sold to the public. Industrial companies are also known as factories. Examples include textile, electronics, automotive, beverage, and other factories. To find out more about the differences between service, trading and manufacturing companies, you can visit https://kontrakhukum.com/article/perbedaan-perusahaan-jasa-dagang-dan-manufaktur.
Types of Companies Based on the Form of Business Entity
Companies in Indonesia can be said to have a business entity if they are officially registered with the government. Below are the types of companies based on the form of business entity:
Limited Liability Company (PT)
A PT is a business entity that belongs to a legal entity. This means that a PT can have liabilities (debts) and its own wealth. It also has three types of capital: issued capital, authorized capital, and paid-up capital. A PT needs to have a clear organizational structure, such as directors and commissioners.
Limited liability partnership (CV)
A CV is usually established by at least two people, with one party taking care of all the management of the CV, and the other party only investing capital.
Individual Company
This company conducts all of its own business activities, or in other words takes care of all of its own finances, production, marketing, and other business activities. Of course, all responsibilities are also borne by the owner because all capital and decision-making is in the hands of the owner.
Cooperative
Cooperatives are joint ventures that are associations of people and are democratic in nature. Cooperatives are established to improve the welfare of its members. For this reason, becoming a member of a cooperative can provide many benefits, one of which is increasing income.
Firm
The company is established with the joint capital of several people, where each of the members has equal responsibility in the management of the company.
Persero
This type of company is similar to a PT, but some of its shares are controlled by the state. Its employees are private employees and do not receive state facilities. This is an explanation of the types of companies in Indonesia based on ownership, activities, and form of business entity. Well, for KH Pals who plan to open a business, you should consider choosing the type of company to be established, yes! Given the various types of companies have significant differences in ownership status, objectives, and activities, of course. After determining what type of company to establish, don’t forget to register it as a business entity. Given that a business entity is a form of legality compliance, your company will be better protected while getting the opportunity to grow. Not only that, the legality of a business entity is also a sign that the company’s integrity has been tested, making it easier for your company to carry out any activities such as participating in tenders, being trusted by investors, and having wider access to other business activities. To establish a company with a business entity, you can contact Kontrak Hukum. With a digitally integrated system and work done by professional experts, we provide the most complete business entity establishment services ranging from PT, CV, cooperatives, individual PT, to cooperatives. No need to worry because the price offered is also very affordable. Curious, right? Just visit the page https://kontrakhukum.com/article/pendirian-badan-usaha-lebih-mudah-dengan-kontrak-hukum. If you have questions about companies and other business needs, please consult with us via the following link Ask KH, as well as via Direct Message (DM) to Instagram @kontrakhukum.
