The business develops very quickly so that entrepreneurs are competing to build and develop their business. Starting a business means having to know the form of the business entity to be built. Did you know that there are various types of business entities in Indonesia?
Before discussing the forms of business entities, it is better to understand the meaning of business entities. The business entity is a legal, technical and economic juridical unit that aims to make a profit. A business entity is not the same as a company, a business entity is an institution, while a company is a place where the business entity processes the factors of production.
The forms of Business Entities in Indonesia are divided into three, there are State-Owned Enterprises/ Badan Usaha Milik Negara (BUMN), Cooperation, and Private-Owned Enterprises/ Badan Usaha Milik Swasta (BUMS).
1. State-Owned Enterprises (BUMN)
State-Owned Enterprise is a business entity that is partly or wholly owned by the Republic of Indonesia. State-owned Enterprises consist of three types, namely Corporate Companies, Bureau Companies and Public Companies.
A. Corporate Companies/ Perusahaan Persero (Persero)
State-owned companies are BUMNs in the form of limited liability companies (PT) whose capital/shares are at least 51% owned by the government, whose purpose is to pursue profits. The purpose and objective of establishing a company are to provide high-quality goods and or services that are highly competitive and pursue profit to increase the value of the company.
B. Berau Companies/ Perusahaan Jawatan (Perjan)
Company Bureau (Perjan) as one form of BUMN has capital from the state. The amount of capital of a Nursing Company is determined through the State Budget. Characteristics of Perjan:
C. Public Companies/ Perusahaan Umum (Perum)
Government company that manages public facilities. Examples of Public Corporation are Pegadaian Public Corporation, Jasatirta Public Corporation, DAMRI Public Corporation, ANTARA Public Corporation.
Cooperation is a type of business entity consisting of people or legal entities. Members of the cooperation :
Individuals, people who voluntarily become members of cooperatives. The cooperative legal entity, which is a cooperative that is a member of a cooperative that has a wider scope.
3. Private-Owned Enterprises (BUMS)
Private-owned Business Entity is a business entity whose owner is entirely in the hands of an individual or private party. This business entity is intended for profit, but there are also private companies that are not looking for profit but rather social motives, such as hospitals, schools, academies, universities, orphanages, and others.
The form of private business entities can be divided into several types, namely Individual Companies, Partnerships, and Limited Companies.
Individual Company/ Perusahaan Perorangan An individual company is a business entity whose ownership and management are handled by one person. In terms of management, the entrepreneur gets all the company's profits but also bears all the risks that arise in the company's activities.
Fellowship is a company that has two or more investors. The partnership can be based on a written contract or legal agreement. The alliance consists of Firms and Joint Commitments / CV.
Limited Liability Company/ Perseroan Terbatas (PT)
Limited Liability Company (PT) is a legal entity established based on an agreement to run a business whose capital consists of shares, whose owners own as many shares as they own.
Company property is separate from the personal wealth of the owner of the company so that it has its assets. Shareholders will get a share of profits called dividends. Besides coming from shares, PT capital can also come from bonds. The advantage of the bondholders is that they get fixed interest regardless of the profit or loss of the limited liability company.
Distribution of Authority in PT
Management of the company can be left to experts in their fields (professionals). The organizational structure of a limited liability company consists of shareholders, directors, and commissioners. Shareholders delegate their authority to the directors to run and develop the company by following the objectives and business fields of the company. Directors are authorized to represent the company, enter into agreements and contracts, and so on. Commissioners have a function as supervisors of the performance of the company's board of directors. AGM results are usually delegated.
These are the forms of business entities in Indonesia. Before starting a business, it's good to consult about the establishment of your company, IPHub is ready to help you. IPHub as a company establishment consultant has served dozens of clients to carry out a company establishment. IPHub also serves a variety of supporting facilities to build your business such as virtual office leases, physical office leases, and co-working leases. IPHub also collaborates with consultants in the fields of IT, tax and bookkeeping. What are you waiting for? Let's consult your business with IPHub, because IPHub understands your business needs.