Nowadays, the use of virtual office to run a business is increasingly popular. Virtual office itself is indeed one of the alternatives that many choose, especially by business people who are just starting their business. This is because there are various benefits and facilities that can be obtained from using a virtual office.
(Also read: What are the Benefits of Having a Virtual Office Business Address?)
With a virtual office, business actors no longer need to buy or rent their own office building in order to have a place of business because one of the facilities obtained by business actors when using a virtual office is to obtain a business address. The business address can be used as a place of residence, place of business activities, or correspondence together with other business actors so that business actors can also save on company operating costs. However, business owners need to know that not all types of businesses are allowed to use a virtual office. To find out what types of businesses are not allowed to use virtual offices, Contract Law will discuss them below. Let’s see the explanation immediately below!
Tourism
Tourism is one type of business that cannot use a virtual office. This is because the tourism business requires a special license called Tanda Daftar Usaha Pariwisata (TDUP) and the business location is the main requirement for obtaining TDUP. To obtain a TDUP, business actors must fulfill the commitment of a location permit, disturbance permit, and also have proof of ownership of the business location. Officers from Kemenparekraf as the ministry authorized to issue TDUP will also conduct direct checks/surveys to the business location. This makes virtual offices not an alternative for this business field.
Construction Services
Similar to tourism, in the construction services business sector there are special licenses that must be fulfilled. For information, construction services do have levels or classifications from small, medium, to large. However, in the smallest construction business and individuals only, the license that must be fulfilled is TDUP. This means that this business field cannot be established with a virtual office. Not only that, according to Article 52 number 7 of the Job Creation Law, construction services must also have the ability to provide construction equipment. Construction equipment certainly has a size that is not small so it requires a large business location to store it. Therefore, this business field must have its own business location to fulfill the required licenses, operate, and store the required equipment and a virtual office is not the right choice.
E-Commerce
Currently, e-commerce business is growing in Indonesia because it is considered promising. Because it is considered to have long-term prospects, many entrepreneurs are interested in starting this business. But on the other hand, the success of e-commerce in Indonesia is also widely used by irresponsible people to commit fraud. This has led the government to issue a ban on e-commerce using virtual offices. Article 27 of Government Regulation No. 80 of 2019 also states that business actors engaged in trading through electronic systems must have a consumer complaint service that includes an address and contact number for complaints. Implicitly, the article requires e-commerce to have a clear and real company address as a form of consumer protection.
Property
The property business is a type of business that carries out buying and selling activities and leases with large cash flows. Because it has a large cash flow, property companies usually get gross income above IDR 4.8 billion. In the Income Tax Law, companies that have earned more than IDR 4.8 billion per year must be confirmed as PKP and the company must go through a verification process and location review from the Director General of Taxes. Not only that, property businesses usually have to showcase house or apartment products that will be sold/leased as a marketing strategy. This certainly requires a large space, so virtual office is not the right choice to choose because it has limited space.
Transportation
Similar to property, the transportation business also has a large cash flow. Not to mention there are activities of receiving and delivering transportation purchased by consumers and storing transportation to be sold. This makes this type of business must have a real and extensive company location and virtual office is not an option that can be chosen to run business activities in this field.
KH Contact
Well, KH friends, that’s an explanation of the types of businesses that cannot / are allowed to use virtual offices. For KH pals who want to use a virtual office as an office or business domicile, don’t forget to find out in advance whether the field of business being run can use a virtual office or not. If you have questions and need consultation related to virtual office or other legal issues, do not hesitate and immediately contact Kontrak Hukum at the Tanya KH bonded link.
