When choosing an office location there are many things to consider. Choosing the location and the price that fits your budget are probably at the higher priority level. However, there are different options to also consider, which can make things a little bit complicated. Especially when you are new in the area.
In this article we will not be discussing the best location for your business but to help you decide on how to settle your business in Indonesia with the available options especially when you are just about to start your business in Indonesia.
Depending on the budget you allocate for the office there are two options available, which is to buy a property or rent an office. I If you plan to buy a property, please read this article about owning land and property in Indonesia. However, if you’re just starting a new business with limited budget renting an office will be the best option.
RENTING OPTIONS:
A. Coworking Office
Have you heard of a Coworking Office? Or perhaps a Coworking Space?
Coworking Office providers provide shared office facilities with working tables, office rooms and meeting rooms in its premises for their clients. Coworking office providers also allow its clients (entities) to register their company address with them.
Locations of most coworking office providers are located in prestigious areas in the city. Therefore, having your company in a very strategic location makes it easier to conduct meetings with potential clients or partners and gives a good image and awareness in the market.
Most coworking office providers provide three different service levels at most, such as:
1. Virtual Office : with this option there is no physical office of your company, you are only registering your company address and use some of the coworking office facilities in a very limited quota. This option is suitable for companies who practice remote working and have a very limited budget for office rent.
Note: not all business activities can use a virtual office as some business activities
require additional permit, which a virtual office cannot suffice.
2. Dedicated Desk : before the Covid strikes and remote or hybrid working became a trend this option used to be a good deal for entrepreneurs, who needed a place to work with adequate facilities and little cost to spend. Unlike virtual offices, this option provides a desk for you to work in the premises of the coworking office provider.
These days, this option is more suitable for companies who want to facilitate their employees in different cities with comfortable working space, without having to rent an office space.
3. Private Office : The last option is a private office. A private office provides space and privacy for your company. Although the space and availability are sometimes limited, it is the best option a coworking office provider could offer. Usually, coworking office providers offer different sizes starting from two persons to 10 persons with common areas and pantries available and ready to use.
If your company needs to be a vat registered company then private office is an option
however do cross-check with the co-working office provider if they can facilitate this.
B. Private Office (Building Units)
This option is similar to the previous option but you will be renting a unit in one of the commercial buildings. This option provides privacy and a lot of freedom. If the number of employees is growing then this is probably the best option. The rent will be higher but it's definitely cheaper than renting a private office in a coworking office.
You will have a privilege to decide the number of meeting rooms, design your own office that fits with the company theme and brand and arrange common areas for the employees. Unlike in a coworking office, having your own office also means that you can decide the office hours and having late meetings will not be a problem.
VAT registration will also not be a problem if you require this for your business.
C. RUKO (Rumah Toko)
RUKO is the local term and abbreviation from Rumah (House) and Toko (Shop). It has the same concept as a SOHO where the office and house are in the same building. In general, a Ruko is built with 3 floors. This option is the locals’ favorite because they can use the first two floors as shops or business space and use the 3rd floor as their living space. However, nowadays Ruko also functions 100% as commercial space and use Ruko as a storage space. Especially in retail business, where storage room is required, using a Ruko allows them to run their business smoothly without having to rent a separate warehouse for storage. Yet, if you plan to use a Ruko, it's crucial to ensure it resides within a commercial zone. In our experience, certain Ruko units are situated outside commercial areas, leading to complications in obtaining the company's tax ID.
If you need assistance or have questions regarding the options mentioned above. Do not hesitate to contact us.
WhatsApp: +62 859-3323-1567
Email: contact@lglbee.com
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