Companies in Indonesia are required to have a business address for various reasons, of which most are related to regulatory compliance issues and the like. According to the company laws of Indonesia, all announcements and any other material in the company’s name must contain the address of the company. In most cities of Indonesia, a non-residential address is the only one which may be used as a business address of a company. This fact applies regardless of whether the company in question is a locally-owned company, foreign-owned company, or representative office. Locally-owned companies, also known as Perseroan Terbatas (PTs), may use either a physical location or a virtual office for the purposes of supplying a business address. However, foreign-owned companies which are also known as Perseoan Terbatas Penanaman Modal Asing (PT PMAs) as well as representative office generally tend to use physical locations which can be found within the confines of an office building. Although such companies may use virtual offices as well, such a move is not common.

Want to Start business in Singapore
Want to Start business in Singapore

Reasons Why Business Addresses Are Important

There are several ways in which the importance of an Indonesian company’s business address can clearly be seen. Every company in Indonesia must register for a tax identification number (NPWP) so that it will be able to fulfill all of its obligations related to taxation in Indonesia. This is because all companies in Indonesia are registered as taxpayers. Therefore, companies in Indonesia must register to receive an NPWP. A valid company address will be needed by Indonesia’s tax authorities in order for them to send the NPWP to the business address of the company after approval has been granted.

On a related note, the NPWP is just one of many tax matters which surround businesses which have been incorporated in Indonesia. Should you require assistance with any of your Indonesia-based business’s needs related to taxation, we at Paul Hype Page & Co can be of service to you. Our tax team is well-versed in all matters related to taxation in Indonesia and will therefore be able to provide you and your company with any tax-related services which might be needed.

A valid business address will also be required by any company which is seeking a permanent business trading license (SIUP). Ownership of this license allows an Indonesia-based company to conduct trading activities. When applying for an SIUP, a business address is one of five documents which is to be submitted.

Another reason why a business address is necessary is for the purposes of the registration of the company’s information in the Companies List and Database. The Companies List and Database is maintained by the Ministry of Law and Human Rights. It contains much information about every company in Indonesia. Such information is available to those in law enforcement as well as to certain members of the public.

Why a Company in Indonesia May Only Have One Business Address

Although there is no law which outright specifies such a ruling, all companies in Indonesia are to have just one business address. One of the reasons for this is because when a business is to receive its NPWP, it must do so at a particular address; it would be impossible to do so if it were to have multiple registered business addresses. Furthermore, it would be very difficult or even impossible for regular correspondence between a business’s clients and staff or owners to take place if the business were to have more than one business address. The Companies List and Database also only provides official recognition to just one business address. For these reasons as well as several others, a business based in Indonesia, whether using a physical office or a virtual office, is only permitted to have one business address.