Concerning the legality of Virtual Offices in Indonesia, some individuals may still have questions such as: Is a Virtual Office legal in Indonesia? What is the legal basis?
The existence of virtual offices began with the issuance of Regional Regulation of DKI Jakarta No. 1 of 2014 regarding the Detailed Spatial Plan and Zoning Regulation, also known as Zoning Regulations, which can be viewed here.
Read Also: What is a Virtual Office: Definition, Advantages, Characteristics
What is the Purpose of Zoning Regulations?
The purpose of issuing this regulation is to control spatial utilization, ensuring that development is carried out efficiently and effectively. Therefore, the Jakarta Regional Government regulates spatial functions in Jakarta to prevent disorder.
For example, in the Zoning Regulation, industrial areas are designated for industrial activities in places like Pulogadung and Cengkareng, while areas like Kebayoran Baru or Pondok Indah do not have industrial zones.
The regulation of virtual offices was further established in 2016 through Circular Letter from the Head of PTSP No. 6/SE/2016.
Read Also: 13 Types of Businesses Prohibited from Using Virtual Offices
How Long Can We Use a Virtual Office?
Regarding the validity period of the Domicile Certificate for virtual office users, the certificate is valid for the duration of the virtual office rental, typically for one year, and can be extended according to applicable regulations.
To obtain a domicile certificate for virtual office users, certain requirements and criteria must be met, as stipulated in Circular Letter from the Head of PTSP No. 6/SE/2016.
Read Also: How Virtual Offices Work: Efficient Solutions for Your Business
Legal Aspects of Virtual Office Usage
As explained in the article on the legal aspects of virtual office usage, in practice, most entities leasing virtual office facilities are limited liability companies (“PT”). The location of the PT is regulated in Article 5 of Law No. 40 of 2007 concerning Limited Liability Companies (UUPT), which states:
- The company has a name and domicile within the territory of the Republic of Indonesia specified in its articles of association.
- The company has a complete address in accordance with its domicile.
- In correspondence, announcements issued by the company, printed materials, and deeds in which the company is a party, the name and complete address of the company must be mentioned.
Also read: Virtual Office Tax Regulations in Indonesia
In the explanation of Article 5 of UUPT, it is clarified that the company’s domicile is also its headquarters. The company must have an address corresponding to its domicile, which must be stated, among other things, in correspondence, and through this address, the company can be contacted.
In conclusion, obtaining a Domicile Certificate for virtual office users requires meeting specific requirements and criteria, as explained above. The validity period of the Domicile Certificate for virtual office users is in line with the rental period of the virtual office, typically one year, extendable according to applicable regulations.
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