doing business in indonesia

The Importance of a Registered Business Address when Doing Business in Indonesia

  • InCorp Editorial Team
  • 5 May 2020
  • 3 minutes reading time

Indonesia is one of the important economic powerhouses in the world that many investors want to do business in for a lot of reasons. From its strategic location to access to huge international markets, abundant resources to a vibrant investment environment, Indonesia makes an excellent choice for doing business.

There are several requirements for registering a business in Indonesia that you must comply with, and one of those is having a registered business address.

Every business in Indonesia will require a designated location with a registered business address. This registered business address allows the follow-up for regulatory compliance issues, communications, correspondence and the smooth operation of the business.

However, many business owners are tempted to use a residential address for their business purposes and little do they know that the use of a residential address for their businesses will lead to non-compliance.

Except for Jakarta that doesn’t need a domicile, no investor is allowed to do business in Indonesia with a company address that is the same as the owner’s residential address.

This rule applies to every type of legal entity in Indonesia including local companies, foreign-owned companies, and representative offices.

The Ideal Solution for Business Address Issue

You don’t have to spend a lot of money to buy or rent an office just to get a registered business address.

Now, you can easily set up your company in Indonesia with a legit registered business address with a virtual office.

Not only that your business is fully in compliance with the law regarding the mandatory business address, but a physical business address will also help you generate more sales as people will be more willing to do business with you.

A virtual office provides a physical business address in a prime location, giving the impression that your company is reputable, reliable and trustworthy.

Furthermore, you can use this address on your website, business card and social media platform to show that you have an established company.

Benefits of Virtual Office when Doing Business in Indonesia

In addition to compliance and increased reputation, a virtual office in Indonesia, especially those that are centrally located can give entrepreneurs the following advantages:

  • You can start doing business in Indonesia quickly
  • Meeting rooms are available to meet up clients and employees in person
  • You can scale up or downsize your business anytime you want based on your business growth
  • No long-term and expensive commitment, you can rent a virtual office on a short-term lease
  • Low overhead costs: no maintenance fees and hefty start-up costs
  • Mail and call forwarding services
  • Other receptionist services which mean you don’t need to hire any full-time administrative employees
  • Free virtual office consultation

 
 
Sounds Good, I Want My Virtual Office Now
 
 

Business Incorporation in Indonesia with Cekindo

After you have decided to start a business in Indonesia, the next step is the business incorporation of your company.

Cekindo is a licensed company registration service provider in Indonesia and has established itself as a leading business consultant since commencing its business in 2011.

We offer a one-stop solution helping our clients to set up an Indonesian company, with the assistance of opening bank accounts.

We give pieces of advice that enable our clients to start their business activities efficiently and quickly. On-going assistance is also available after you have after the incorporation to help your business comply with Indonesian company law, tax filing, and accounting requirements.

Find out about all the details from Cekindo for the business incorporation in Indonesia. Fill in the form below.

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Get in touch with us.

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Frequent Asked Questions

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.

It should take between 30 to 45 days.