Establishing a Contractor CV

Establishing a Commanditaire Vennootschap (CV) in the contractor field can be a suitable option for entrepreneurs looking to venture into construction with limited capital and risk. Below is a complete guide to establishing a contractor CV.

What is a Contractor CV?

A contractor CV is a form of business entity operating in the construction services sector, established by two or more individuals, where one or more act as active partners (managers) and others as passive partners (investors). A contractor CV can undertake various construction projects such as building construction, bridges, roads, and other infrastructure.

Benefits of Establishing a Contractor CV

Establishing a CV in the contractor field offers several advantages, including:

1. Limited Capital and Risk

A CV allows entrepreneurs to start a business with smaller capital compared to a PT (limited liability company).
Business risks are shared between active and passive partners, with passive partners being liable only up to their invested capital.

2. Simplified Establishment Process

The establishment process of a CV is simpler and quicker compared to a PT, facilitating faster commencement of operations.

3. Management Flexibility

CV management is more flexible without formal structures like those in PT.
Business decisions can be made quickly by active partners.

4. Lighter Tax Burden

Taxes imposed on CVs are generally simpler and directly borne by partners based on their share of profits received.

Single Tax: If you have a business entity, tax is only imposed once. This tax is imposed when your business makes a profit.

Capital: Having a business entity increases your business and job prestige. This can increase public interest and trust. Additionally, access to financing or capital becomes easier. You also have the opportunity to handle large projects because capital is no longer a barrier.

Requirements for Establishing a Contractor CV

To establish a contractor CV, several requirements must be met:

1. Founders

A CV is founded by at least two people, namely an active partner and a passive partner.
Founders must have valid ID cards (KTP).

2. Deed of Establishment

Create a deed of establishment before a notary public, covering the articles of association and agreements among the partners.
The deed of establishment must include the CV’s name, office address, business field, capital, and profit distribution.

3. CV Name

The CV’s name must be unique and not already used by another company.
The name should reflect the construction business field.

4. Business Domicile

Have a clear business domicile address compliant with zoning regulations in that area.

5. Business Capital

Determine the business capital to be contributed by active and passive partners.
Capital must be stated in the deed of establishment.

6. Business License

Obtain necessary business licenses such as Construction Services Business License (IUJK) from the relevant agency.

Procedure for Establishing a Contractor CV

Here are the steps to establish a contractor CV:

1. Naming and Business Location Determination

Determine a suitable CV name and ensure it is not already registered.
Determine a business location compliant with zoning regulations.

2. Preparation of Deed of Establishment

Prepare a deed of establishment before a notary public covering the CV’s articles of association and partner agreements.
The deed must include all necessary information such as CV name, address, business field, capital, and profit distribution.

3. Registration with the District Court

Register the deed of establishment with the local District Court for validation.
Upon validation, the CV is officially established and can commence operations.

4. Business License Processing

Process required business licenses such as Construction Services Business License (IUJK) from the local Investment and Integrated Service Agency (DPMPTSP).
Ensure all requirements and supporting documents are fulfilled.

5. Tax Registration (NPWP) and Taxation

Register the CV with the local Tax Office (KPP) to obtain a Taxpayer Identification Number (NPWP).
Ensure compliance with tax obligations as per applicable regulations.

6. Bank Account Opening

Open a bank account in the CV’s name for business transaction purposes.
This account is crucial for separating personal and business finances.

By following the procedures and meeting the above requirements, you can easily and quickly establish a contractor CV. Starting a contractor business in the form of a CV allows for more flexible and efficient operations, and enables leveraging significant opportunities in the construction industry.

Establishing a CV in Indonesia can be time-consuming. To address this, you can rely on CV Establishment Services from vOffice. Our experienced professional team will assist you through all stages.

What are you waiting for? Contact us now for a FREE consultation on CV establishment!