Every business which has been incorporated in Indonesia is required to select a location in which its registered business address is to be located. The purpose of a registered business address is so that regulatory compliance matters will be followed. Many business owners in Indonesia aim to increase the simplicity and flexibility of running their business. Therefore, some believe that by registering their own residential address as the address of the business, the completion of many extremely important matters will be suitably fulfilled. However, such business owners must be aware of all matters that relate to registered business addresses in Indonesia before attempting to do so.

Why Business Require Registered Business Addresses

In Indonesia as well as anywhere else in the world, every business which has been registered is also to have a registered 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 the address used by a business owner for the purposes of correspondence and communication with all people who are associated with the business.

Uses of Registered Business Addresses

A registered business address can be used to complete any of various different tasks. Among these tasks are the opening of a business bank account; listing of the business on the Internet and other indices; communication with current and potential customers alike.; reception of any bills, payments, or invoices which are meant for the business; registration of a domain name for the business’s website; and perhaps most important of all, registration for any permits or licenses required for the operations of the business to commence. Every one of the tasks mentioned will either be greatly simplified by or require a registered business address to have already been selected.

In Indonesia, there is one other Indonesia-specific task which may only be completed by businesses with a registered business address; this is the obtaining of a domicile letter. 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

Some prospective business owners in Indonesia might be planning to use their own residential address as the location of their business address. Such is especially likely if the business owner is a foreign who comes from a country in which one’s residential address can be and is often used as one’s business address. 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 of 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. 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 so as to ensure that the setup of your new Indonesia-based company will take place in a manner which is in accordance with the business laws and regulations of Indonesia.