Are you looking to establish your business presence in Indonesia without incurring high costs? Consider a virtual office address service. With a virtual address in Indonesia, you can create a professional image and a convenient communication solution without needing a physical office. This solution mainly benefits smaller businesses or those focusing more on fieldwork than office work.
Registered Business Address Requirements in Indonesia
In Indonesia, all businesses must have a registered business address. However, this address can be different from the location where the company conducts its day-to-day operations. This requirement serves various purposes, such as:
- Create a company bank account
- Ensure proper follow-up on compliance issues
- Receive formal communications from government agencies
- Enable business listing on the internet
- Streamline the process of receiving bills, payments, and invoices
- Purchase a domain name for your business’s website
- Simplify the process of obtaining the necessary permits and licenses for your business.
However, it is essential to note that using a residential address as a business address is prohibited unless you get written permission from local community members.
Virtual Offices in Indonesia
A virtual office or virtual address in Indonesia lets you officially register an office building as your business address while conducting business operations elsewhere. To be eligible for a virtual office in Jakarta, companies must meet specific criteria:
- Have legal documents, including business licenses, that state the office location and activities.
- Your virtual office, co-working space, or residential house must meet regulations that prevent disturbing the neighborhood or polluting the environment, like using sidewalks and automatic machinery.
- Your company must submit an identification card, family card, NPWP or individual tax card, bank account details, or Bank recommendation letter.
- State the virtual office addresses and the location where you conduct the business.
- The business license is valid for one year, and you can extend it according to the existing regulations.
Are Virtual Offices Legal for Foreign Companies in Indonesia?
Foreign companies used to have a physical address in a business district. In May 2019, Jakarta’s regional government issued a new regulation that allows foreign companies to use virtual office services from service office providers with VAT certificates as long as they plan to become value-added taxpayers.
This virtual address in Indonesia’s new regulation waives the previous requirement for obtaining a domicile from the local district. However, the company may still need one from the building or service office provider. However, it’s important to note that some provinces may still require a domicile letter from the local district.
Business Fields in Indonesia That Can’t Use Virtual Offices
While most local companies have the option to use a virtual address in Indonesia, there are specific business fields that the government requires to have physical office spaces. These categories of businesses are legally obligated to set up their legal entities with physical offices. Here are some of the business fields that cannot use virtual offices:
- E-commerce companies require a physical office to reduce fraud risk and ensure customer accountability.
- Construction companies need operating permits that they cannot obtain using a virtual office.
- Tourism businesses require special licenses only after a physical office survey by the Ministry of Tourism.
- Transport companies need a physical office to move other people’s property, and their customers can refer to the physical office.
- Property developers – as they are involved in moving large amounts of money, and they need a physical office to ensure accountability.
- Event organizers – having a physical office makes coordination with stakeholders more convenient.
Virtual Address in Indonesia – The Cost and What Differentiate It from The Traditional Offices
Depending on location, facilities, and services, it can cost between USD 30 and over USD 1,000 per month. Virtual offices have become a popular and cost-effective alternative to traditional physical offices, but some companies still need physical office space.
Virtual offices offer greater flexibility regarding location, working hours, and lower costs. But if you need a physical office, service, or co-working space, that can be a flexible and affordable option. Consulting with experienced service providers can help determine the best choice for your business.
Conclusion
Virtual offices and registered business addresses are becoming more accessible options for companies in Indonesia, with some restrictions in specific business fields. While some types of businesses still require physical offices, a virtual address in Indonesia offers flexibility, cost savings, and convenience for many others. If you need a virtual address in Indonesia, IZIN.co.id can help you. For more information, email us at cs@izin.co.id or via WhatsApp.
