Determining whether to establish a CV or a PT is the first strategic step for anyone planning to start a management consulting business in Indonesia. This decision not only defines your legal entity but also affects your credibility, eligibility for tenders, and personal asset protection as a business owner.
Understanding the Difference Between CV and PT
A CV (Commanditaire Vennootschap) is a non-legal business entity established by two types of partners: active and passive. Active partners manage operations and bear full responsibility for business obligations, while passive partners only contribute capital and do not participate in management.
A PT (Perseroan Terbatas), on the other hand, is a legal entity recognized by the state. Shareholders are only liable up to the amount of capital they have invested. This means your personal assets are protected if the company faces legal or financial issues.
If you aim to build a professional image and plan to expand, a PT is the stronger choice. However, if you are starting a small business with limited capital, a CV may be a more efficient and faster option to establish.
Ownership and Capital Structure
A PT requires a minimum authorized capital of IDR 50 million, with at least 25% paid up at the time of establishment. A CV, however, has no minimum capital requirement, making it more flexible for consultants building a small team. Ownership in a PT is represented by shares, while a CV is based on partnership arrangements. This makes a PT more appealing to investors and business partners who value formal ownership structures as a mark of professionalism.
To support your business setup, we provide PT establishment services and CV formation services with fast procedures and full assistance from our experienced legal team.
Licensing and Legal Requirements for Management Consultants
A management consulting business falls under KBLI 70209, which covers activities in business, strategy, financial, marketing, and HR consulting. According to the OSS RBA system, every business entity must have an NIB (Business Identification Number) and a standard certificate based on its risk level.
With a PT structure, you can easily fulfill formal legal requirements such as Ministry of Law and Human Rights approval and complete operational permits. This offers added value when working with large corporations or government institutions.
Read also: How to Become a Management Consultant in Indonesia: A Guide from vOffice
Advantages and Disadvantages of Each Structure
Advantages of a CV:
- Lower establishment cost and faster process.
- No minimum capital requirement.
- Simpler taxation system.
Disadvantages of a CV:
- Unlimited personal liability for active partners.
- Lower credibility compared to a PT.
Read also: How to Establish a CV: Complete Requirements and Setup Guide
Advantages of a PT:
- Limited liability to the amount of share capital.
- Higher credibility in the eyes of clients and financial institutions.
- Eligible to participate in tenders and access larger funding opportunities.
Disadvantages of a PT:
- Higher costs and more complex administration.
- Mandatory bookkeeping and financial reporting.
Read also: How to Establish a PT: Step-by-Step Guide
For management consultants planning long-term expansion, a PT is the ideal choice as it provides legal protection, wider business opportunities, and professional market reputation both nationally and internationally.
For management consultants in Indonesia, a PT is generally recommended to build credibility, protect assets, and support large-scale business growth. Meanwhile, a CV suits those who are just starting out with limited capital and prefer a simple, fast setup process.
Whatever your choice, vOffice is ready to assist you with all your business registration and legal needs through professional, efficient, and reliable services.
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