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How to Establish a 2022 CV: Terms, Costs, and Procedures

The following is complete information about the meaning of a CV to its establishment procedure for those of you who want to legalize your business.

For those of you who want to register your business as a legal entity, it is better to pay attention to the scale of the business and the form of the legal entity. Typically, the most common forms of business are Limited Liability Companies (PT) and Limited Partnerships (CVs).

Well, if you have a medium-sized business such as MSMEs, a CV is the appropriate form of business entity. This is because the CV establishment process is easier and cheaper than PT. Establishing a CV is also suitable for those who want to legalize your business but have budget limited.

Curious about how to set up a CV? Read the definition of CV first so that you understand the intricacies.

What is a CV?

Commander Vennotschap or CV is a form of business entity in the form of a partnership established by one or more people who entrust their funds to be managed by the company and aim to achieve profit.

The legal basis for the establishment of this CV is regulated in the Commercial Code (KUHD) Articles 19-21 and the Civil Code (KUHPerdata). To run a CV, there are two roles in the CV, namely an active partner and a passive partner.

Active allies are managers of the company. He is responsible for running the company and has the right to determine company policies, including working with third parties. While passive partners are parties who invest in CV and their responsibility is limited to that capital.

For example, when the company suffers a loss, the passive partner is only responsible for the amount of capital that has been invested. Passive allies are also not allowed to interfere with all company affairs, from management to policy.

Advantages of Establishing a CV

CV has many advantages, one of which is being a mainstay type of business for small to medium enterprises such as MSMEs because it does not need capital and expensive establishment costs. In detail, here are 4 advantages of establishing a CV.

  1. No minimum capital. There is no minimum capital requirement when registering your business as a CV at the Ministry of Law and Human Rights (Kemenkumham). In fact, you can already set up a CV without any capital, but it can be legally recognized.
  2. The establishment process is easier and costs less. Establishing a CV only requires fewer requirements and the cost is also more affordable than a PT so that the approval process will be easier.
  3. Easier tax collection system. Unlike the imposition of PT tax in the form of dividends, the tax collected from CV is only the company's profit which is paid once at the end of the year.
  4. Operational discretion. The limited power of passive partners allows active partners to make company decisions as they wish because they are fully responsible. Unlike the case with PT which provides space for investors to enter into company policies.

Terms of Establishment CV 2022

As mentioned earlier, the requirements in establishing a CV are quite easy, namely:

  1. At least it was founded by two people, who were then referred to as active allies and passive allies.
  2. Have a notary deed in Indonesian.
  3. Must be an Indonesian citizen.
  4. All or 100 percent of company ownership may only be owned by Indonesian citizens, without foreign investors.

These four things are absolute requirements in establishing a CV. In addition, you must also prepare several required documents for the establishment of a CV, namely:

  1. Photocopy of ID cards of active partners and passive partners.
  2. Photocopy of NPWP in charge of the company.
  3. Stamped domicile statement/statement.
  4. Statement letter for the Indonesian Standard Classification of Business Fields (KBLI) with a stamp duty.
  5. Company phone number and email.
  6. If the company is authorized, it is obligatory to include a power of attorney and stamped minutes along with the company's KOP.

CV Establishment Fee

Many factors affect the cost of establishing a CV, such as business domicile, duration of CV management, initial capital, and form of business. Currently, the cost of establishing a CV is in the range of IDR 3-8 million.

In order not to bother taking care of it yourself, you can use the services of various licensing companies on the internet. You are free to choose the appropriate package budgets, but of course there is a difference between the services of Rp. 5 million and Rp. 8 million. The difference in price usually lies in the completeness of the documents to be processed.

CV Making Procedure

After knowing the terms and costs, now is the time for you to know how to build a CV from start to finish. Keep in mind that the procedure is quite long and the documents that must be fulfilled are also many. Read more below.

Determining the Two Founders of CV

The very first thing that must be done, of course, is to determine who is the founder of the CV. The number of founders of at least 2 people indicates the role of active partners and passive partners as previously described.

In addition to showing the founder of the CV, this determination is also at the same time which founder only has responsibilities as an active ally or a passive ally. You also have to agree on the division of property between the founders because the calculation of assets in the CV is not separated from personal assets.

Preparing Data and Documents for CV Establishment

Next, you need to prepare several documents that you must bring to take care of making a notary deed in front of a notary. The steps for making it according to Article 19 of the KUHD are as follows.

  1. Proof of identity in the form of ID cards of the people involved in the establishment of CV.
  2. CV.
  3. Place of domicile / domicile CV.
  4. The aims and objectives of making a CV.
  5. Name of the ruling ally or active ally.
  6. Another important third party clause against founding allies.
  7. The date of registration of the deed of establishment to the District Court (PN).
  8. Make cash (money) from summarizes specifically for third parties. If empty, take full Allied responsibility.
  9. Exclusion of one or more partners from brand authority to act on behalf of the Guild.

Submitting CV to Kemenkumham

Don't forget to submit the name of the CV that you will build to the Ministry of Law and Human Rights through the Business Entity Administration System (SABU). Before determining the name, consider the following CV naming requirements.

  1. Use Latin letters.
  2. Have not used another CV registered with SABU.
  3. Does not offend public order and/or decency.
  4. Not similar to the name of a state institution, government agency, or international institution, unless it has obtained permission from the person concerned.
  5. Does not contain numbers or series of numbers, letters or series of letters, and special characters that do not form words.

The name deposit will be checked and announced online by the Directorate General of General Legal Administration (DJAHU). They will agree if the name deposited meets the terms and conditions, and vice versa.

Create and Sign the Notary Deed of Establishment CV

The next step is to make a notarial deed before a notary. Don't forget to bring the documents needed for making a notary deed. You can hire the services of any notary whose domicile is different from the location of your CV.

The origin, the notary has obtained a decision on the appointment, was sworn in, and registered with the Ministry of Law and Human Rights. You can see various examples of CV establishment deeds or try a CV incorporation deed simulation on the internet to learn the contents of a notary deed.

After the process of making a notarial deed is complete, each CV founder must sign the deed before a notary. However, if one or all of the founders of CV are unable to attend, then the founders of CV can authorize the successor to sign the deed.

Make a Certificate of Company Domicile (SKDP)

To complete the legality of the CV, you must also prepare an SKDP issued by the local government such as the lurah or village head domiciled with CV. You have to take care of the SKDP to the government which is domiciled in the same position as CV.

SKDP is a letter that notifies the position or location of your business. It is also an important document for making TIN, business license, and Company Registration Certificate (TDP).

Managing the Taxpayer Identification Number (NPWP)

Next is to make a NPWP of the type of business entity through the Tax Service Office (KPP) in accordance with the domicile of CV. The documents that must be brought are: CV's deed of establishment, SKDP, SK from the Ministry of Law and Human Rights, and personal data of CV founders such as photocopies of ID cards, KK, and NPWP. After that, you will get a taxpayer certificate as a business entity.

Registering CV to the District Court (PN)

In this process, you need a notary deed which will later be registered with the nearest PN in the jurisdiction of your CV. Don't forget to bring supporting documents such as SKDP, NPWP, and a CV that has been approved by the Ministry of Law and Human Rights. Wait for the process for approximately 2 months until the PN is approved.

Managing Business License Number (NIB)

After the CV is registered with the PN, the next step is to take care of the NIB. All you have to do is come to the City/Regency Trade Office by filling out the SIUP application, attaching a decree from the Ministry of Law and Human Rights, NPWP, CV, and SKDP.

Currently, you can register your CV to get NIB online through the official website Online Single Submission government property. The NIB itself can function as a TDP, Import Identification Number (API) if you want to import, and customs access if you want to export and/or import.

In this process, you will also get other documents such as:

  1. NPWP of entities or individuals, if not yet available.
  2. Letter of Approval of Plans for Employment of Foreign Workers (RPTKA).
  3. Proof of BPJS Employment and BPJS Health Participation Registration.
  4. Notification of eligibility to obtain fiscal facilities, and/or;
  5. Business license in related industry. For example, your CV is engaged in the trading industry, then what you get is a Trading Business License (SIUP).

Publishing the Official Summary

The final step is to publish a summary of the CV constitution after the deed of establishment is approved by the PN. CV founders are required to publish this as a supplement to the State Gazette of the Republic of Indonesia.

Procedure for Making CV Online

Currently, all matters can be done online, including how to set up a CV. If you don't have much time to take care of various CV documents, you can use this alternative.

You just need to access the General Legal Administration (AHU) Online page to perform the steps above. AHU has also provided guide about how to set up a CV online so you don't get confused doing it.

You can also take care of supporting documents such as NPWP and SKDP online, so you only need minimal mobility to take care of establishing a CV. It's easy isn't it?

This is a summary of information related to how to set up a company in the form of a CV. You are free to choose which way to build a CV. First, you can take care of establishing your own CV directly offline.

Second, you can take care of the establishment of a CV through registration online. Third, if you don't want to bother anymore, you can use licensing services. You just need to find the service that best suits your needs via the internet.

Until here today's discussion, hopefully useful!

Image source headers: Unsplash

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