Every business incorporated in Indonesia must select a location in which its registered business address is to be located. The purpose of a registered business address is to ensure that regulatory compliance matters are followed. Many business owners in Indonesia aim to increase the simplicity and flexibility of running their business.
Some believe using their residential address for business can effectively fulfil many important matters. However, business owners must be aware of all matters related to registered business addresses in Indonesia before attempting to do so.
Why Businesses Require Registered Business Addresses
In Indonesia and globally, every registered business must have a designated business address. Registered business addresses are important because they specify the physical location from which a business is said to operate. However, the business’s registered business address is not required to be the same as its operational base in practice.
The registered business address is used for correspondence and communication with everyone associated with the business.
Uses of Registered Business Addresses
A registered business address can be used to complete any of various tasks. Tasks include opening a bank account, listing online, managing communication, handling bills, registering a domain, and obtaining permits.
All tasks are simplified or require a pre-selected registered business address. In Indonesia, obtaining a domicile letter is a task only possible with a registered business address.
To receive a domicile letter, one requires a rental agreement, which in turn requires a registered business address before it can be received.
Indonesian Residential Addresses and Business Addresses
Moreover, prospective business owners in Indonesia may plan to use their residential address as their business address. Hence, this is common for foreign business owners from countries where residential addresses often serve as business addresses.
However, such business owners will almost certainly be disallowed from doing so if they were to start a company in Indonesia. This is because, in almost every city in Indonesia, one is not allowed to start a business which bears a business address in the same location as its owner’s residential address. The only locations in Indonesia which allow such to be done are those where local community members provide their approval of the business activities to be performed by the new business.
Business Incorporation and Address Compliance in Indonesia
This approval must be in written form. This fact holds true for both local and foreign company owners alike. Furthermore, in most cases, regardless of whether the business is a locally-owned company (PT), foreign-owned company (PT PMA), sole proprietorship (UD), or partnership of any type, the restrictions and requirements which apply to all business addresses located in Indonesia apply in the same way.
Regardless of the location of your prospective business address, you might have taken an interest in starting a company in Indonesia. Should such happen to be the case, let us at Paul Hype Page & Co. be the first to assist you. We will guide you through the entire process of incorporation in Indonesia to ensure that the setup of your new Indonesia-based company will take place in a manner which is by the business laws and regulations of Indonesia.
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