What Types of Businesses Are not Allowed to use Virtual Office | Virtual Office Jakarta

Virtual Office services have been growing rapidly in Jakarta in the past 2-3 years. This is largely due to the Indonesian government’s support in growing the local entrepreneurship and startup sectors. The Indonesian government requires all companies to have a business address to incorporate their limited liability companies. However, in order to save costs, many startups are and small businesses are operating in residential areas or in buildings that are not zoned for commercial uses.  Virtual Offices have been especially helpful in helping startups and new businesses set up their companies as it provides entrepreneurs with an affordable option to attain that business address they need to incorporate their company.  

Virtual Office subscription is the most economical and convenient way for companies to own a prestigious CBD address (Source: Avenue8 Offices)

However, not all companies are allowed to use virtual offices. In general, companies that require extra business licensing (in addition to SIUP) are not allowed to use Virtual Offices for their company domicile. Please confirm with your legal counsel / notary just to be extra sure! 

Here are the business sectors that are not allowed to use virtual offices:  

Construction Services 

Companies operating in construction service are not allowed to use virtual offices. This is mainly because companies in the construction sector are required to apply for additional licensing such as PKP (perusahaan kena pajak) and SIUJK (Surat Izin Usaha Jasa Konstruksi); These licensing typically requires the company to have an adequate physical space to conduct their business, hence a virtual office domicile will not suffice. 

Tourism  

Companies operating in the tourism sector also require additional business licensing, namely Tanda Daftar Usaha Pariwisata (TDUP). This licensing requires that the business needs to operate out of a physical space.  

Property 

Operating in the property sector typically involves a large amount of capital. Hence the government does not allow businesses in the property sector to operate out of a virtual office.

Event Organizer 

Event Organizers bear the responsibility of planning and delivering an event. In addition to that, event organizers are also required to liaise with many stakeholders such as caterers, performers, event venues, etc. Hence, in order to protect all the stakeholders involved. event organizers are required to operate in a physical space.  

If your company falls under one of these categories, fret not! Here at Avenue8, we also offer various Private Office plans that can be used for your company domicile. The regulations are constantly being updated by the government. It is always a good practice to consult with your legal counsel / notary for the latest updates! 

Source: Smart Legal

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