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Should Business Licensing Be Required for Paid Webinar Organizers?

A lawyer hosting a webinar on Business Licensing

Webinars promote a two-way dialogue between a company and its clients, building connections that can enhance client engagement, loyalty, and sales. You need user-friendly, dependable, and feature-rich webinar software to help with these crucial events. It is getting harder and harder to hold your audience’s attention in today’s cutthroat industry. By having a webinar, you may do this in one method. Webinars are an efficient way to inform our clients and provide them access to the critical information they would not otherwise have. 

Paid webinar service providers as business actors

A legamart lawyer taking a webinar

A paid webinar is a live online seminar for which you organize and charge admission. The subject can be as narrow or broad as you wish, but it must be high-demand material. For example, this might contain details on all facets of operating your company, such as advice on website design or techniques for investing in research and development.

Meanwhile, trading services such as webinars via Zoom or Whatsapp lectures are classified as trading through electronic systems because the transactions are carried out through a series of electronic devices and procedures. Zoom, Whatsapp and other applications are classified as electronic systems because they are electronic devices and procedures that function to process, display, transmit and disseminate electronic information.

Thus, you can be classified as a business actor whose definition based on Article 1 number 14 of the Trade Law reads:

A business actor is any individual Indonesian citizen or business entity in the form of a legal entity or not a legal entity established and domiciled in the jurisdiction of the Unitary State of the Republic of Indonesia that carries out business activities in the field of trade.

In addition, you are also a trading business actor through an electronic system because you carry out business activities in the field of trading through electronic systems.

Benefits of Paid Webinars

Outstanding sales potential

Paid webinars allow you to communicate with existing clients and network with new potential clients in person at unobtrusive live events. You can ask questions to help everyone engage during this time, and the relationship grows consequently, leading to a wonderful way to build an online brand as a lawyer.Additionally, market segmentation will result in a disproportionately high proportion of genuinely interested clients.

Tremendous benefit for the viewers

Paid webinars allow your audience the chance to gain important information from actual authorities in their chosen sector without having to fork over the astronomical costs involved with hiring consultants or expensive speakers.

Excellent addition to your current approach

Pay-per-click advertising (PPC) and email marketing are two excellent paid traffic tactics that may be supplemented with sponsored webinars. As a result, these events can be used as a lead-generating technique to help develop an audience of potential customers.

Generating revenue from the paid webinars

This is when they start making money once you have established an audience for holding events that are charged admission. Promote paid events on social media platforms like Facebook or Instagram, and blog about them to let people know that your business offers these kinds of live streaming. Always add a link to buy tickets for upcoming paid events when marketing a free event online, if there are any! All traffic will have the chance to learn more about what you do and get a firsthand look at how sponsored events operate this way.

Do you need a business licensing for paid webinar organizers?

law student listening to a webinar hosted by legamart

Based on the explanation above, organizers of webinars and lectures via Whatsapp, including trading business actors through electronic systems, must meet the following requirements:

  1. Business license;
  2. Technical clearance;
  3. Company registration mark;
  4. Taxpayer Identification Number;
  5. Code of business conduct/ code of practices;
  6. Standardization of goods and/or services products; and
  7. Other matters per the provisions of laws and regulations.

The obligation to have a business license for business actors is also affirmed in Article 15 of the PMSE PP, which states:

Business actors must have a business license to carry out PMSE business activities. However, the operator of intermediary facilities is exempt from the obligation to have a business license if:

  • Not a beneficiary party directly from the transaction; or
  • Not directly involved in the contractual relationship of the parties conducting the PMSE.
  • Business license applications are carried out through electronically integrated business licenses per the provisions of laws and regulations;

Further provisions regarding electronically integrated business licensing for PPMSE refer to the norms, standards, procedures, and criteria regulated by ministerial regulations.

Webinar Business License

A business licensing tag at a lawyer office

Business licenses for business actors through electronically integrated business licensing or OSS are based on the level of business risk.

For businesses organizing webinars or Whatsapp lectures, you can use the KBLI code 82302, which is related to the services of a special event organizer. In this KBLI code, it is classified as a business with a low level of risk. Businesses with a low level of risk need to have a Business Identification Number (“NIB”) which is the identity of the business actor and the legality to carry out business activities. 

Bottom Line

Paid webinars may seem like a lot of effort, but they may ultimately benefit your company. If you already have a successful ad campaign, you don’t necessarily need to produce sponsored advertising from the start (such as one surrounding PPC or email marketing). Instead, you would need to create advertising centred around event dates and descriptions to incorporate paid webinars into this already-existing plan!

Paid webinars are a terrific method to draw attention to your material, generate more leads over time, and boost your company’s earnings.

Thus to answer the question, lecture service providers through the Whatsapp application and paid webinars via online platforms are required to have business legality because they can be categorized as business actors who carry out business activities in the economic or trade fields through electronic systems.

Legal basis

  1. Law Number 7 of 2014 concerning Trade;
  2. Government Regulation Number 80 of 2019 concerning Trade through Electronic Systems;
  3. Government Regulation Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing.

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