When starting a business, the first thing to do is to choose the most suitable form of business entity.
There are various forms of business entities, including Firma, CV, Foundation, Cooperative, and Limited Liability Company (PT).
Each of these business entities has its own advantages and disadvantages.
However, the PT business form has a high appeal in Indonesia.
Based on the 2016 Economic Census by the Central Bureau of Statistics, Indonesia has 26.71 million businesses/enterprises engaged in the non-agricultural sector.
The census recorded an increase of 17.51% from the conditions in 2006.
The next question then arises, why do many business people prefer to establish a PT for their business?
The following Legal Contract describes the answer below.
Protected by Law
The provisions regarding PT are regulated in Law No. 40 of 2007 concerning Limited Liability Companies (PT Law), Law No. 11 of 2020 concerning Job Creation (Job Creation Law), and many more.
This shows that the PT business form is recognized by the state and has received legal certainty in doing business.
So, if a dispute occurs in the future, the problem can be resolved based on applicable law.
There is a separation of property
The separation of assets in question is between personal assets and company assets.
Based on Article 3 Paragraph 1 of the PT Law, shareholders are not personally liable for PT losses exceeding the shares owned by each.
So, shareholders are only responsible for the amount of capital deposited but not their personal assets if the company loses money.
This is different from a CV where in the event of a loss, liability can be sought up to personal assets.
Therefore, a PT has a clear share ownership system since the establishment process because the amount of each capital given has been determined.
Easy Transfer of Ownership
The form of ownership or wealth of the investor in a company is a share sheet.
If the shareholder wants to sell them, he or she can easily transfer or sell the shares to another party.
In the process, the shareholder must follow the procedures for transferring shares according to the law.
More Professional and Convincing
In seeking investors or loans, creditors will trust a company in the form of a PT more to provide large amounts of capital.
This is because PT business entities have unquestionable credibility and an organized organization.
In a PT, there are 3 organs that have been determined by law, namely the General Meeting of Shareholders (GMS), Directors, and Commissioners.
Each organ has its own rights and obligations in carrying out business activities.
With a clear division of roles, coordination between each other will not overlap and is easy to carry out.
Wider Business Access
A PT can expand its business by participating in government projects.
Usually, tender projects from the government and the private sector only accept participants of business entities in the form of PT.
In addition, large companies will also be more confident to cooperate with business entities that are both in the form of PT.
Therefore, the continuity of the company will be more guaranteed.
Can Ally with Foreign Parties
Foreigners who wish to do business in Indonesia can invest through the establishment of a PT Penanaman Modal Asing (PT PMA).
However, there are provisions that prohibit 100% share ownership by foreigners for certain types of businesses.
So, the owner of capital in a PT PMA can come from Indonesian investors in the form of a PT and foreign investors.
Read also:
- Must know, this is the advantage of establishing a business entity in the form of a PT!
- Do you want your MSME to become a PT?
KH Contact
If you want to get these benefits, you should establish your business in the form of PT.
Kontrak Hukum is happy to assist you in taking care of it if you are unable to do so.
Kontrak Hukum provides fast and easy service because it only takes about 2-3 weeks to build a PT.
Plus, there are many attractive promos that KH Friend can get.
Therefore, entrust the establishment of PT Sobat KH to Kontrak Hukum.
We are proven to have served businesses from various regions in Indonesia without obstacles at affordable costs.
Contact Kontrak Hukum for more information or send a message via Instagram @kontrakhukum.
We are waiting for you!
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