SITU is a licensing document issued by the local government to validate the physical location of a business. Law firms operating from an office—whether owned or rented—are required to obtain a SITU to be legally recognized by the state, clients, and other institutions.
So, what happens if a law firm doesn’t have a SITU? Read this article to find out more!
Also Read: What Is a Law Firm: Definition, Types, and Services
Is a SITU Required for Law Firms?
Yes. Although the OSS and NIB simplify the business licensing process, the SITU remains important as a location permit issued by the local government. This applies to all business entities, including law firms.
For firms that rent offices (including virtual or serviced offices), a SITU is required for:
- Obtaining a Business Domicile Certificate (SKDU)
- Completing your OSS business profile
- Validation by banks, notaries, and government agencies
Implementing SITU for Law Firms
Although the OSS system has integrated many licenses, the SITU is still required as it relates to the physical location of the business, which remains under the authority of the local government.
In practice:
- Law firms with physical offices still need a SITU as proof of business legality
- SITU applications can be submitted through the local Investment and One-Stop Integrated Services Agency (DPM/PTSP) at the city or regency level
- SITU is required as a supporting document to complete the OSS business profile
Also Read: Why Law Firm Tax ID (NPWP) Applications Are Often Rejected
SITU Differences Based on Office Type
| Type of Business Location | SITU Validity Period | Relative Cost | Physical Space |
|---|---|---|---|
| Virtual Office | 1 year | Cheapest | None |
| Serviced Office | 5 years | Moderate | Available |
| Coworking Space | 1 year (same as VO) | Low to Medium | Shared |
Here’s a breakdown of the table above:
Virtual Office
- Valid for 1 year, must be renewed according to the lease period
- A physical business activity address is required
- One of the directors must have a Jakarta ID (KTP)
- Ideal for new firms looking to minimize costs
Serviced Office
- Valid for up to 5 years
- Includes workspace, meeting rooms, and reception services
- More acceptable to regulators and clients
- Perfect for firms that frequently meet with clients
Coworking Space
- Regarded as a virtual office in SITU regulations
- Valid for 1 year, renewable
- Offers shared physical space
- Suitable for small firms or those focused on networking and collaboration
Also Read: Legal Address Requirements for Law Firms in Indonesia: A Complete Guide from vOffice
Risks of Not Having a SITU
Operating without a SITU may cause your firm to be considered illegal. Risks include:
- Warnings from the local government
- Rejection of NIB applications
- Difficulty in banking and corporate client access
- Ineligibility for legal tenders
Also Read: Common Mistakes When Starting a New Law Office and How to Avoid Them
How Can vOffice Help Your Firm?
vOffice provides various office solutions that support SITU issuance:
- Virtual Office – fast legality at low cost
- Serviced Office – fully equipped, ready-to-use, longer SITU validity
- Coworking Space – efficient and collaboration-friendly
While vOffice does not directly offer SITU processing services, its office addresses are legally valid for law firm domiciles. All vOffice locations are within commercial zones and are already used by numerous professional lawyers across Indonesia.
Check out various strategic locations for office space/serviced office rentals in Indonesia from vOffice today:
- Serviced Office Jakarta
- Serviced Office Tangerang
- Serviced Office Bali
- Serviced Office Surabaya
- Serviced Office Bekasi
- Serviced Office Medan
- Virtual Office Jakarta
- Virtual Office Tangerang
- Virtual Office Bali
- Virtual Office Surabaya
- Virtual Office Bekasi
- Virtual Office Medan
- Coworking Space Jakarta
- Coworking Space Tangerang
- Coworking Space Bali
- Coworking Space Surabaya
- Coworking Space Bekasi
- Coworking Space Medan
So, what are you waiting for? Get the best office solution for your business by relying on vOffice services. Contact us now for more information.
Note for Law Firm Owners
Law firms are still required to have a SITU, even in the OSS era. The NIB does not replace the location permit. If your firm uses a virtual office, serviced office, or coworking space, ensure the location meets valid domicile requirements and is within a commercial zone.
vOffice offers a legal business location solution for law firms looking to establish or expand their operations legally, efficiently, and flexibly. Choose the office that suits your needs and enjoy guaranteed legal compliance.
FAQ
Does the NIB replace the SITU?
No. The NIB replaces the TDP and SIUP, but the SITU is still required as a business location permit from the local government.
Is a virtual office legally valid for a law firm’s domicile?
Yes, according to Circular Letter PTSP No. 6/2016, virtual office addresses are valid under certain conditions.
How long is the SITU valid for a virtual office?
One year, and it must be renewed based on the lease period.
Can a law firm use a serviced office for SITU?
Yes. In fact, a serviced office provides a SITU validity of up to 5 years.
What are the benefits of a serviced office from vOffice?
Fast legality, full facilities, strategic locations, and support for SITU processing.
References
- BPTSP DKI Jakarta (2016). SE No. 6/SE/2016.
- Government Regulation No. 5 of 2021
- Ministry of Law and Human Rights RI. Permenkumham No. 17 of 2018
- OSS.go.id – Risk-Based Licensing System
