Avenue8 Offices

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Company Domicile Letter No Longer Needed for Company Registration in Indonesia

In an effort to increase the ease of doing business in Indonesia, the head of the Jakarta Capital Investment Agency  (Badan Koordinasi Penanaman Modal / BKPM) announced that it would stop issuing Company Domicile Letter (Surat Keterangan Domisili Perusahaan / SKDP) and Business Domicile Letter (Surat Keterangan Domisili Usaha / SKDU) for businesses domiciled in Jakarta as outlined in SK DPMPTSP DKI Jakarta No 25 Tahun 2019 SKDP are letters that outlines a company’s domicile address that companies used to apply for business licenses, tax identification numbers, and more. The elimination of SKDP and SKDU as a prerequisite to obtaining various business licenses help shorten the time for company incorporation, thus shortening the time needed for company incorporation. 

Why Do We Still Need Virtual Offices? 

1. Business Address 

Virtual Offices is the most affordable way for companies to obtain a prestigious CBD business address. Although companies no longer need to receive a Building Domicile Letter from Virtual Office providers that was typically needed to apply for your SKDP/SKDU, businesses are still required to use a business address in a building zoned for commercial uses. In addition to that, having a prestigious business address gained through virtual office subscriptions also provide many tangible benefits for businesses – such as boosting company image, improving company’s credibility and more.  

2. Back Office Support 

When you lease a virtual office, you automatically gain a back office team that can help you with tasks such as mail handling, call handling, call transfer, receptionist service, and more. If your work is mobile, you will be rest assured to know that someone is helping you” hold down the fort” while you focus on building your business.  

3. Some Agencies Still Require Company / Building Domicile Letter 

Some agencies such as Banks still require businesses to provide a Company Domicile Letter / Business Domicile letter to set up bank accounts and various applications.  Because of that, here at Avenue8, we will still issue the Building Domicile Letter needed to apply for your Company Domicile Letter to all of our virtual office clients.  

Disclaimer: Consult with your notary / legal consultant for the latest updates and personalized advice pertaining to your business.  

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Do you still have more questions about the benefits of Virtual Offices? Drop us a message today to know more about how we can help your business.