Are you aware that there are various types of companies in Indonesia? The term ‘company’ is certainly familiar to us, as companies have permeated various aspects of society. Starting from everyday goods produced by companies, services we receive from companies, to the possibility of working for a company.
For those who still have questions about companies, let’s delve into further explanation. This article will discuss the types of companies based on legal entities and the activities they undertake.
Types of Companies Based on Legal Entities
In Indonesia, there are various types of registered and unregistered companies with the government. According to the book ‘Hukum Perusahaan’ by Handri Raharjo, some common types of companies in Indonesia include:
- Limited Liability Company (PT): A legal entity with separate capital, liabilities, and assets. A Limited Liability Company has a capital structure, such as placed capital, authorized capital, and paid-up capital. It is required to have a clear organizational structure, such as directors and commissioners.
- State-Owned Company: A company whose capital is owned by the state, either partially or wholly. State-owned companies consist of Public Companies, State-Owned Companies, and State Agencies.
- Limited Liability Company with State Participation (Persero): Similar to a Limited Liability Company, but some of its shares are owned by the state. Persero companies do not receive facilities from the state, and their employees have private sector status.
- Commanditaire Partnership (CV): Established by two or more individuals with different levels of involvement. It consists of active partners managing the business and passive partners who only invest capital.
- Cooperative: A joint effort established by a group of people based on democratic principles, where each member has one vote. Cooperatives are formed to enhance the welfare of their members and operate independently.
- Sole Proprietorship: All capital is owned by a single entrepreneur who also manages the business. The owner is fully responsible for all aspects of the company’s activities.
- Partnership Firm: Established by two or more individuals with joint capital. Members share equal responsibilities, and profits/losses are shared jointly.
- Civil Partnership (maatschap): Established based on an agreement between two or more individuals to share profits from something they contribute.
Types of Companies Based on Activities
- Manufacturing or Industrial Companies: Engaged in the processing of raw materials into semi-finished or finished products sold to consumers. The cost of goods sold is the benchmark for profit/loss.
- Service Companies: Provide services to the public, such as banking, transportation, accounting offices, and insurance. Revenue is obtained from providing services.
- Trading Companies: The primary business is buying goods for resale to consumers. The main revenue is obtained from selling goods at prices higher than the original prices.
- Agrarian Companies: Involved in the management of natural resources such as plantations, agro-industry, livestock, and fisheries. Profits are obtained from the sale of managed natural resources.
- Extractive Companies: Directly extract and utilize natural resources such as mining, fishing, and logging. Profits are obtained from direct exploitation.
These are some explanations about the types of companies based on legal entities and activities they undertake. We hope this information is useful to you.
