Difference Between Foundations and PT: Business Forms in Indonesia

Perbedaan Yayasan dan PT

In the business and organizational world in Indonesia, two commonly chosen business forms are foundations and PT (Perseroan Terbatas). These two entities have different characteristics and purposes, so it is important to understand the differences between them before deciding which one best suits your needs.

Definition of a Foundation

A foundation is a legal entity established for social, religious, or humanitarian purposes. A foundation is not intended to generate profit for its founders but to provide benefits to the community.

Main Purpose of a Foundation

The main purpose of a foundation is to carry out activities that are social and non-profit, such as education, charity, healthcare, or religious activities.

Examples of Foundation Activities

Examples of activities commonly carried out by foundations include establishing free schools, hospitals for the poor, or providing scholarships for underprivileged students.

Definition of PT

A PT (Perseroan Terbatas) is a business entity aimed at generating profit. A PT is a company owned by one or more shareholders, where the company’s capital is divided into shares.

Main Purpose of a PT

The main purpose of a PT is to engage in business activities to generate profit, which can then be distributed to the shareholders.

Examples of PT Activities

Examples of PT activities include manufacturing goods, providing services, trading, or other profit-oriented ventures.

Main Differences Between Foundations and PT

Differences in Purpose and Function

Foundations have social or humanitarian purposes and are not profit-oriented, while PTs are intended to generate profits for their shareholders.

Differences in Organizational Structure

The organizational structure of a foundation typically consists of a Board of Trustees, Management, and Supervisory Board. In contrast, the structure of a PT includes Shareholders, the Board of Directors, and the Board of Commissioners.

Differences in Profit Distribution

A foundation does not distribute profits to its founders or management, while a PT actively distributes profits in the form of dividends to its shareholders.

Understanding the differences between a foundation and a PT is crucial before deciding which business entity best aligns with your goals. Both have their advantages and disadvantages, which must be carefully considered.

Establishing a Company

If you are planning to start or grow your business, you can rely on services from vOffice. Our professional team is ready to assist with various business needs, such as:

Contact us now and get special offers!