When starting a business, it is important for business people to know in advance the business entity that will be chosen for the business being run. This is because there are several business entities in Indonesia that have different characteristics from one another, such as PT, CV, Cooperative, and Firm. The choice of business entity is important because it will have an impact on the interests of the business being run. This time, Kontrak Hukum will discuss the differences between CV and Firm that need to be known by business people who plan to open a business. To find out what the differences are, let’s see the discussion below!
CV
A Commanditaire Vennootschap (CV) is a partnership established by one or more committal allies with one or more complementary allies, to run a business continuously. In the structure of a CV, there are two allies, namely a committal/passive ally and a complementary/active ally. Both have different roles and responsibilities. Passive allies only have the obligation to provide capital and may not participate in management while active allies have the responsibility to carry out the management of the CV. In addition, only active allies can represent interests for and on behalf of the CV including entering into agreements and having legal relations with third parties.
Firm
A Firm is a partnership that runs a business continuously, under a joint name, and each of its allies has the right to act on behalf of the partnership. If in a CV only the active partner can carry out the management, then in a Firm each partner has the right to carry out the management of the Firm jointly and all actions taken are also carried out in the name of the Firm owned. Thus, unless specified in the articles of association, every ally in a Firm can carry out the management. Even so, each ally in both CV and Firm still has the same obligation to provide capital. The capital can be in any form as long as it can be valued. In the regulations, there are no provisions governing the capital in the establishment of CV and Firma so that the minimum amount of capital depends on the agreement of the allies. But usually, the amount of capital provided will affect the distribution of profits generated by the business entity. Since a Firm is established under a joint name and the management is carried out jointly, every action taken by an ally becomes the responsibility of the other allies and vice versa. This means that in a Firm, the legal responsibility is also a joint responsibility. When the Firm experiences financial problems and the assets owned are insufficient to cover its legal obligations, each founder/allies must also bear and use their personal assets. This is certainly different from the management of a CV which is only carried out by active allies. Because it is only carried out by one of the allies, only the active ally has a legal relationship and is bound to third parties so that all forms of legal responsibility are also the responsibility of the active ally. So that when the CV also experiences financial problems, only the active ally must bear and use his personal assets. Regarding the field of business that can be run, there is no specific difference. This is because there are no provisions regulating the types of business activities for CVs and Firms. However, CVs are usually chosen by business actors who run business activities in the field of trade, such as selling office stationery, photocopying, and printing, while Firms are mostly chosen by people who run business activities in the form of specialized consultations for certain professions, such as lawyers’ firms.
KH Contact
Well, that’s the explanation of the difference between CV and Firm. For KH Pals who are planning to establish a business entity, don’t forget to do research and consult with experts regarding the business entity that is suitable for KH Pals’ business. If KH Pals need help taking care of business entity licensing, KH Pals can also use legal services from Kontrak Hukum.
Contract Law guarantees that KH Buddy will get business legality without obstacles. KH pals do not need to worry about using the services of Kontrak Hukum because Kontrak Hukum has been trusted in solving legal problems quickly, easily, and affordably. Do not hesitate and immediately contact Kontrak Hukum at Tanya KH‘s bonded link, if you have questions and want to consult about the establishment and legality needed for your business entity.
