Business organization

Business Organization

Shrey B. SaroliyaSUB: Communication skills ||

Roll No:51C.P.Patel & F.H.Shah commerce college

S.Y.bba(itm)Anand

• To make profit

• To share risk

• To control

Why Need Business Organization

• Company an association,

partnership, or union that carries on

commercial or industrial enterprises.

Definition

1. Sole Proprietorship • single person company• The owner is the business

2. Partnership• Established by 2 or more person• Agreement

3. Corporation LLC and LLP• Limitation of liability• Tax treatment

Business Organization

1. Partnership

2. Limited Liability Company (PT) can be categorized as

corporation

3. Cooperative

4. Foundation (except for social purposes)

Indonesian Business Organization

• Maattschap usually used by consultants, lawyers, or other professional to establish a business organization

• Firma (Fa.) usually used for commercial partnership

• Commanditaire Vennootschap (CV) almost similar to US Partnership

Partnership

• Under old law (Commercial Code) known also as Naamloze Vennootschap (NV)

• A legal entity that established by an agreement

• Doing business

• Authorized Capital divided into shares

LLC (Perseroan Terabytes)/Regular PT

• Regular PT Company Law

• PT PMA Company Law and Investment Law

• PT PMDN Company Law Investment Law

Type of PT

Article of Association:

• Name and Location• Object and Purpose• Duration• Capitalization• Shares• BOD and BOC• General Meeting of Shareholders• Appointment of BOD and BOC• Profit and Deviden

Establishment

• Management done by BOD

• Full responsibility

• Represent PT

• Job Description regulated in Article of Association

Management/BOD

• Each year net profit not all profit can be distributed as dividend. Part of it should be kept for reserve min. 20% from paid up capital

• If within 5 years, a shareholder not take its dividend, such dividend will be transferred for reserve.

Financial Report and Dividend

• GMS decision• Expired• Court Decision

Dissolution or Liquidation

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