A partnership is one of the most commonly chosen business entities in Indonesia due to its flexibility, especially regarding capital. Unlike a Limited Liability Company (PT), establishing a partnership does not require a minimum capital as mandated by law. The amount of capital is entirely determined by the agreement between the founders.
Read Also: What Is a Partnership: Definition, Types, and How to Establish One
No Minimum Capital Requirement
In a partnership, the initial capital is not formally regulated. Each partner can contribute capital according to their financial capability. This agreement is then stated in the deed of establishment prepared before a notary.
Capital Based on Partners’ Agreement
The amount of capital is usually adjusted to the type of business, operational needs, and profit-sharing arrangement. The basic principle is simple: the more capital contributed, the larger the share of profit received.
Read Also: Characteristics of Partnerships in Indonesia
Key Characteristics of Partnership Capital
High Flexibility
Partnership founders can start a business with limited capital without regulatory barriers. This makes partnerships an excellent choice for small and medium-sized businesses.
Combined Capital
Partnership capital comes from the combined contributions of each partner. With this system, the accumulated capital can be greater than in a sole proprietorship.
Unlimited Liability
Unlike a Limited Liability Company, a partnership does not separate personal assets from business assets. Each partner is liable for obligations up to their personal property. This is why careful capital planning is crucial.
Read Also: Partnership Organizational Structure in Indonesia
Documents and Requirements Related to Capital
Although there is no minimum requirement, a partnership still needs several legal documents, including:
- Statement letter of capital contribution.
- Proof of capital deposit (if any).
- Inclusion of capital amount in the deed of establishment.
After that, the partnership must also open a company bank account to manage business funds.
Advantages of Flexible Capital
Accessibility
The ease of establishment makes partnerships ideal for entrepreneurs with limited initial capital.
Cost Efficiency
Since there is no minimum capital requirement, the cost of establishing a partnership is generally more affordable compared to other business entities.
Scalability
Partnership capital can be increased at any time in line with business growth.
Important Considerations
Although it may seem simple, prospective founders must realistically assess their capital needs. This is important to finance initial operations, fulfill third-party obligations, and anticipate risks.
Practical Solutions for Establishing a Partnership
Many entrepreneurs need professional assistance to handle the legalities of establishing a partnership. With Partnership Establishment Services from vOffice, the entire process becomes faster, safer, and compliant with regulations. Moreover, vOffice provides a bonus virtual office with a strategic address so that your partnership looks professional from day one.
Contact us now for a FREE consultation!
FAQ about Partnership Capital
Is a partnership required to have minimum capital?
No. Partnership capital is determined based on the agreement of the partners and recorded in the deed of establishment.
How is profit distributed in a partnership?
Profits are distributed according to the amount of capital contributed by each partner.
Does a partnership separate personal and business assets?
No. Partners are fully liable up to their personal assets.
Can partnership capital be increased later?
Yes. Capital can be increased at any time based on the partners’ agreement.
