Firma is an alliance of business entities to run and develop a business managed by two or more people under the name of a joint venture. Each member of the firm has full responsibility for the company. Because of this shared responsibility, the capital to establish a firm business entity comes from the joint venture of all members. With the concept of collected capital, firms are certainly different from limited liability companies (PT) and Commanditaire Vennootschap (CV) whose capital comes from shareholders or company founders. Likewise, PT and CV are different from each other because they have different terms and scales of business implementation.
Characteristics of a Firm
Every business entity has different characteristics. For example, a Limited Liability Company or PT that may not include the same name as another PT registered with the Ministry of Law and Human Rights. Meanwhile, Commanditaire Vennootschap or CV is a business entity consisting of active allies (investors as well as company leaders) and inactive allies (only being investors). When discussing firms, maybe we focus on law firms that often write down the name of a member followed by the word colleague.
Apart from these characteristics, there are other characteristics that we need to know.
-Establishing two or more people in an agreement.
-Using one joint business name in carrying out all business activities.
-Firm membership is very binding and valid for life.
-The members of the firm have the right to dissolve the firm.
-Each member can make an agreement with the … Read More
