Choosing the right legal entity is one of the first and most important decisions you’ll make when starting a business in Indonesia.
The most common options are PT (Perseroan Terbatas) and CV (Commanditaire Vennootschap), each offering different levels of protection, complexity, and suitability depending on your goals.
A PT is a limited liability company that provides a clear legal separation between the business and its shareholders. This means your personal assets are protected if the company runs into legal or financial trouble. A PT is also the only option if you plan to bring in foreign investors or scale the business significantly.
In contrast, a CV is much simpler to establish and is often used by small, family-run businesses. However, a CV does not offer the same legal protection. The managing partner (sekutu aktif) is personally liable for the business’s obligations, which may pose risks in certain industries or as the business grows.
Your decision should take into account your business size, future plans, risk appetite, and potential involvement of foreign capital. Many startups begin as a CV for simplicity but convert to PT later once they stabilize or seek investment.
SatuSolusi can help assess which legal form aligns best with your current and future needs. We manage the end-to-end registration process, ensure compliance, and help set up a solid legal foundation from day one.