Since the last few years, the trend of using virtual offices, especially for startups, has been increasing.
The Indonesian Joint Office Service Entrepreneurs Association (PERJAKBI) in early 2020 even recorded the number of virtual offices in Indonesia had reached 170 thousand units.
One of the reasons for the high use of virtual offices is because business people do not need to spend deep pockets to buy or rent office buildings.
In addition, business actors can also get various facilities, be registered as a business entity, and have a strategic office location.
However, business owners need to know that not all types of businesses are allowed to use virtual offices.
Then, what are the types of businesses that are allowed?
Let’s see the following explanation.
Virtual Office at a Glance
Virtual office or co-working space is an office that has a physical room and is equipped with office support services provided by the virtual office manager to be used as a place of domicile, place of business activities, or correspondence jointly by two or more entrepreneurs for which there is payment in any form, excluding building rental services and office rental services (serviced office).
Until now, there is actually no regulation that specifically regulates virtual offices in Indonesia, but there are supporting regulations such as DKI Jakarta BPTSP SE No. 06/SE/2016 on the Issuance of Domicile Certificate and Further Permits for Virtual Office Users and Minister of Finance Regulation No. 147/PMK.03/2017 on Procedures for Taxpayer Registration and Elimination of Taxpayer Identification Number and Confirmation of Revocation of Taxable Entrepreneur.
As mentioned earlier, not all types of businesses are suitable and allowed to use a virtual office.
Types of businesses that can use virtual offices include:
1. Startup
A startup is a company that generally applies technology to support its business.
Usually, startups only have a few employees and utilize the internet a lot so that work can be done anywhere so virtual offices are very appropriate for these companies.
However, not all startups can be run using a virtual office.
If the startup is conducting website or application activities that are commercial in nature, the company can no longer use a virtual office as a business domicile considering that this type of business can be categorized into industrial activities so that the business domicile must also be in the industrial zone.
However, if the startup is established in an area that does not have a zoning system, then startups with this type of business can use a virtual office.
2. Law Office
In Indonesia, the rules regarding advocates’ licenses to practice law are regulated in Law No. 18/2003 on Advocates and the advocate code of ethics.
In these rules there are no provisions governing the criteria for law offices for advocates.
So that a person who has fulfilled the requirements in the Advocate Law can carry out his practice as an advocate.
Advocate licenses are individual licenses and do not require other licenses.
This makes it permissible for advocates to run their law office in a virtual office.
Virtual office is the right choice especially for someone who is just starting to practice as a lawyer because with complete facilities and cheap, lawyers can get a professional legal office.
3. Micro, Small, and Medium Enterprises (MSMEs)
MSMEs are businesses that are usually run on the scale of individuals, households, or small business entities.
Because they are still small-scale, MSME businesses usually have limited capital and there are no rules prohibiting MSMEs from using virtual offices.
Therefore, the use of virtual office as a business domicile can be utilized by MSMEs to cut costs and also increase the trust of clients or company partners who want to invest.
4. Consulting Services
Similar to lawyers, consultants have a license to practice that is personally attached and the license application is submitted depending on the consulting services provided.
For example, if someone wants to become a tax consultant, that person must apply for a practice license to the Directorate General of Taxes.
Consultant is a service occupation so there are no commitments to fulfill.
In this case the company can be opened in an office zone and a virtual office is the right choice especially for beginner consultants.
Virtual office is a suitable office for consultants who want to work remotely especially nowadays almost all work can be done and managed through the internet so the office is only needed when meeting clients.
If you want to use a virtual office as an office or business domicile, don’t forget to find out in advance whether the business you are running is allowed to use a virtual office.
If you have any questions or want to consult about virtual office, don’t hesitate to contact Kontrak Hukum!
