Business entities can be interpreted as an economic juridical entity that has the purpose of seeking profit. While the company is a technical entity in production that aims to produce goods and services). So it can be concluded that the company is part of a business entity while the company is a tool of business entities in an effort to achieve its objectives, namely obtaining profits / profits

It is mandatory for all companies to have a form of leadership that is appropriate for the company.

Choosing a company form is the first step in running a company. Because the success or failure of the business carried out depends on the decision.

In the following we will discuss the forms of the company as follows:

1. Individual Business

2. Frima

3. Limited Partnership Alliance (CV)

4. Limited Liability Company (PT)

5. State Owned Enterprises (BUMN)

6. Other Company Forms.

a). Individual company

            Individual companies are one form of company that is widely used in Indonesia. Forward progress of the company depends entirely on the ability of the business owner.

            As the leader of the company itself must be able to devote all his thoughts and energy to the company. The leadership of the company must have knowledge and tenacity and must be wise and prudent because people who are less capable and weak-hearted will easily plunge their own company into a loss.

Strengths of Individual Companies

1. The owner is free in making decisions, so decisions can be quickly implemented.

2. All profits of the company are fully owned by the company owner.

3. The nature of company confidentiality can be guaranteed, both in financial terms and in the production process.

4. Usually the owner of the company is more active in trying to achieve the company's goals that belong to him.

Weaknesses of Individual Companies

1. The responsibility of the owner of the company is unlimited. Here all private property is a guarantee against company debt.

2. Limited company financial resources, because efforts to obtain sources of funds are very dependent on the ability of the owner of the company alone.

3. Business continuity of the company is not guaranteed, because if the owner dies or is hit by a sentence of imprisonment, the company will stop its activities.

4. Management is more complex because all management activities are carried out by the owner of the company itself.

b) Frima

            A firm is a business entity established by one or more jointly to carry out a business, generally formed by people who have the same expertise or profession with unlimited individual responsibilities, profit or loss will be borne together.

Characteristics and characteristics of the firm:

- If there is an outstanding debt, each owner is obliged to pay off his personal assets.

- Every member of the firm has the right to be a leader

- A member is not entitled to enter new members without the permission of other members.

- Firm membership is inherent and valid for life

- A member has the right to dissolve the firm

- Its establishment does not require a deed of establishment

- Easily obtain business credit


Provisions regarding this firm are regulated in article 16 of the Criminal Code which is strengthened by articles 16 and 18 of the Criminal Code and essentially states:

· In membership, each member has the right to be a leader.

· Members may not include other people to become members without the consent of other members.

· Membership cannot be transferred to others as long as the member is still alive.

· Separation of personal wealth from company property is meaningless, because if the company's wealth is not enough to cover the company's debt, the personal wealth of the allies is guaranteed.

· Allies who do not enter capital, only labor will get the same profit or loss as those who enter the smallest capital

Firm Strength

· Greater management capacity due to work sharing among members.

· Establishing a firm is relatively easy because it does not require an establishment certificate.

· Capital needs are more easily met, easier to obtain credit because it has greater financial ability.

Weaknesses of the Firm

· The owner's responsibility is not limited to the company's entire debt, personal wealth is a guarantee for the firm's forest debt.

· Losses caused by one member must be shared by other members.

· The sustainability of the company is uncertain, because if one member cancels the agreement to run a joint business, the firm automatically becomes bubar.

c) Limited Partnership Company (CV)

            CV business entity form is the second company form after PT which is most widely used by business people to carry out their business activities in Indonesia. However, not all lines of business can be run by a limited partnership company (CV), this is in view of the existence of certain business fields that are specifically regulated and can only be carried out by limited liability companies (PT).

            A limited partnership is a form of cooperation agreement between two people or with an authentic deed as a deed of establishment made before an authorized NOTARY. The founders of limited partnership consist of ACTIVE PESERO and PERSERO PASIF, the difference being the responsibility in the company. An active Persero is someone who is active in running his business and is fully responsible for his personal wealth. Passive Persero is a person who is only responsible for the amount of money deposited into the company without involving personal assets and wealth.

Characteristics and Traits of CV:

- Difficult to withdraw the capital that has been deposited

- Large amount of capital because it was established by many parties

- Easy to get loan loans

- Having active members who have unlimited responsibilities and some who are passive are just waiting for profit

- Relatively easy to set up

- The survival of a CV company is uncertain

Advantages :

1. The capital collected is relatively large

2. Relatively easy to get credit

3. Greater management ability

4. Its establishment is relatively easy

Weakness:

1. Some allies have unlimited responsibilities

2. The survival of the company is relatively uncertain

3. Difficult to withdraw capital, especially for allied leaders.

d) Limited Liability Company (PT)

            Limited Liability Company or often also referred to as Naamloze Vennootschaap (NV), is a business entity that has its own wealth, rights and obligations, which are separate from the wealth, rights and obligations of the founders and owners. Limited Liability Company has a business capital divided into several shares, where each friend takes part of one or more shares. Shareholders have limited liability for company debts in the amount of paid-in capital.

            In a PT company, in addition to the notary deed, there are also financial and legal requirements. PT must have:

a) General Meeting of Shareholders (GMS)

b) Commissioner

c) Board of Directors

Types of PT that need to be known are:

a) PT Closed

b) PT Open

c) Individual PT

d) Empty PT

e) Foreign PT

f) PT Dometik


Advantages :

· The survival of the company is guaranteed

· Limited liability so that it does not pose a risk to the personal wealth or family wealth of the owner

· Stocks can be traded with relative ease

· Greater capital needs will be easily met, thus enabling business expansions

· Management of the company can be done more efficiently


Weakness:

· The construction costs are relatively expensive

· Secrets are not guaranteed

· Lack of effective relationships between shareholders



e) State Owned Enterprises (BUMN)

            State-Owned Enterprises is a business entity known as public enterprise which contains two essential elements, namely the element of government (public) and business element (enterprise) meaning that this BUMN is not 100% pure government and not 100% pure business.

            For more clarity about the classification and characteristics inherent in each form of SOE, can be seen in the following diagram. The main characteristics of state businesses according to law no.9 of 1994.

1) Perjan (IBW) Governmental Agency

a) The meaning of business, corporate objectives. public service

b) Legal status: Not a legal entity

c) Organizational relations with the government: as part of the Department / DG (not autonomous)

d) Ownership / control of the government: fully and directly as with the portion of the Department / Ditjen / Dit

e) Management by the government: the leader is the head of the department appointed by the government

f) Oversight by the government: direct and hierarchically functional, examination by the State accountant, balance sheet endorsed by the minister

g) Wealth / capital: from the government through the Annual Budget

h) Employment status: civil servants

i) The scope of business activities: in general public utilities that are vital and strategic


2) Public Corporation (Law prp 1998) public Corporation

a) Business meaning, company goals: public service and professional / balanced profic.

b) Legal status: legal entity based on Act 19 prp 1998 and PP / establishment

c) Organizational relations: stand alone as a unitary organization that is autonomous

d) Ownership / penfeelings by the government: fully and indirectly, that is to begin planting the separated state assets

e) Management by the government: the leader is a board of directors appointed by the government

f) Oversight by the government: through officials or bodies that function as commissioners. Examination by the state accountant, the balance sheet was approved by the minister

g) Wealth / capital: from the assets of the State that are separated and constitute the capital of the public company. Capital is not divided into shares.

h) Employment status: employees of State companies based on separate laws

i) The scope of business activities: generally important businesses are in the form of public utilities / services

3) Persero (KUHD) Government / State Campany

a) The meaning of business, company goals: profit as a center of gravity

b) Legal status: legal entity based on KUHD and PP of establishment (with notary deed)

c) Organizational relations with government: stand alone as an organizational entity that is achieved (autonomous)

d) Ownership / control by the government: can be wholly or partially through shareholders in whole or in part

e) Management by government: leadership is a board of directors appointed by a general meeting of shareholders

f) Oversight by the government: through the board of commissioners appointed by the general meeting of shareholders

g) Wealth / capital: from the assets of the State that are separated and constitute the authorized capital of the company, for the whole or a part of the company's capital divided into shares

h) Employment status: employee of an ordinary private company.


i) The scope of business activities: as in ordinary private companies

f) Other Company Forms

            In addition to the forms of the company that have been described above, the following will be explained by other forms of company, namely:

a) Sidikat

            Syndicate is a collaboration between several institutions to carry out special projects under an agreement.

b) Cartel

            Cartel can be interpreted as a form of partnership between several companies that are bound by a certain agreement.

c) Merger

            Is a merger of two or more companies into one company. Margers consist of two: Horizontal margers are a merger with a foreign company for the same market and Vertical is a merger with a supplier company.

d) Regional companies

            Is a company whose capital / shares are owned by the regional government, where the company's assets are separated by the wealth of the regional government concerned.

e) Cooperatives

            Kopreasi is a business entity whose members are cooperative persons or legal entities whose activities are based on cooperative principles, which are based on the principle of kinship

f) Foundation

            Foundations are organizations that have the goal of not looking for profits but for businesses that are social in nature

g) Share

            A partnership is a union of two or more people to conduct joint ventures for profit.

h) Civil union

            Is an agreement consisting of two or more people who agree to mutually appoint themselves to enter into an alliance with a view to sharing the benefits that occur because of the agreement. At each civil union there are elements:

            a. Inclusion

b. The purpose of getting the benefits shared with the members. For example: six people are friends, agreeing to seek profit / joint income by encouraging theatrical performance. Each member / person submits a sum of money as capital, then the profits are shared among the six people, essay with the amount of money entered into the union.