To support business and economic growth, the government continues to strive for ease of licensing. If previously at least two people were required to establish a PT, the country now allows for individual PT. However, what then becomes the difference between Individual PT and CV?
Differences Between Individual PT and CV
Since 2020, the government has enacted Individual PT through Law No. 11 of 2020 concerning Job Creation and its derivatives. Individual PT is a nomenclature in the Job Creation Law—previously, only PT with a minimum of two capital owners was known.
Read Also: Differences Between Open PT and Closed PT
Differences Between CV and Individual PT
Individual PT and CV are two types of business entities suitable for SMEs. However, there are several fundamental and essential differences between Individual PT and CV, including:
- Legal Entity:
- Individual PT is a legal entity, while CV is a non-legal entity.
- Ownership Criteria:
- Individual PT can only be established by one person who meets micro and small business criteria, while the establishment of CV must be done by at least two people, consisting of active partners and passive partners (distinguishing between skills and capital ownership).
- Establishment Rules:
- The rules for establishing Individual PT are found in Article 153A paragraph (1) of the Fifth Part of the Limited Liability Company Law, while the rules for establishing CV are found in Article 19 of the Commercial Law.
Read Also: What is TDP (Tanda Daftar Perusahaan)?
Choosing Individual PT or CV?
Based on these differences, establishing Individual PT is now more recommended for SME entrepreneurs than CV. This is because the stronger legal framework also helps the owner of Individual PT secure their personal assets.
In the case of CV, the absence of a separation between business and personal assets means that CV owners must be ready to be responsible for using their personal assets in the event of business failure.
On the other hand, the government also provides various other conveniences in establishing Individual PT. Besides the absence of a minimum capital requirement, establishing Individual PT can also be done without a notary deed. Founders only need to access the official website of the Directorate General of Legal Administration of the Ministry of Law and Human Rights, register an active email, pay the PNOB, and fill in the required information.
Read Also: What is NIB (Nomor Induk Berusaha)?
That’s the difference between Individual PT and CV. Although both are suitable for newly established businesses—including SMEs, there are some fundamental differences between them. So, which one will you choose?
Don’t worry, if you intend to establish PT from home, vOffice is ready to help. We will assist in the PT establishment process and CV establishment so that you can focus more on other strategic business-related matters.
Moreover, to support more cost-effective, easy, effective, and efficient business operations, you can use vOffice’s Virtual Office service that can save up to 90% of operational costs. vOffice is available in major cities, including virtual office Jakarta, virtual office Tangerang, virtual office Bekasi, virtual office Bandung, virtual office Surabaya, virtual office Medan, and virtual office Bali.