The different between a PT and a CV; PT is a business entity in the form of a legal entity whose status is regulated by Law Nr. 40 of 2007 on Limited Liability Companies. While CV is not a business incorporated because there is no regulation that regulates it. As the name implies, CV is a form of Dutch Colonial heritage business entity. Its establishment is easier than a PT, making CV much chosen as a business entity for UMKM business.

According to the Law Nr. 40 of 2007, the founding capital of PT is determined by IDR 50million, unless otherwise determined by the laws or regulations that implementing for such business activities in Indonesia. As for CV, there is no capital limit in its establishment. But in practice, the amount of capital deposited in the CV will effect the distribution of profit portion in the future.

In the establishment of a business in the form of PT is required there are at least 2 people involved, Indonesian or foreigners, each of which has a share. For CV also requires a minimum of 2 people as founder. However, the provision of cv establishment prohibits foreigners from co-founding the company commanditaire.