Foreign companies have three legal options on how to set up a business or invest in Indonesia:
Of the three, the last one is the easiest, fastest, simplest, and cheapest to set up. Compared to the others, representative office registration in Indonesia is more straightforward and no capital requirement need.
The disadvantage with a representative office is you cannot participate in several economic activities such as cannot buy and sell goods. It could not generate any profit. Further, it requires document renewals as well.
On the other hand, the good news is it still can be helpful for your business in many ways such as:
The process of opening a representative office depends on the type. There are three types of Representative Office as follows:
Construction is one of the most robust industries in Indonesia today. It improves infrastructure, ramps up the GDP, and makes the country more attractive to foreign investment. However, it remains to be highly regulated.
If you want to be part of the booming construction industry, you can set up a foreign construction representative office. Your company’s role covers consultation, implementation, and supervision of construction work. You have the option to hire both foreign and local workers.
However, due to the nature of the industry, conditions are many:
To set up your construction representative office legally, you have to:
The process is complicated, lengthy, and might be confusing for several people with all the documents and fee as well. Cekindo could assist you to obtain all licenses you should have in representative office registration in Indonesia.
The simplest of your options is a general foreign representative office, which can perform a variety of miscellaneous tasks for the parent company. In order to set up Foreign Representative Office, the steps are as follows:
It takes around two months to receive all your licenses such as Approval of Representative Office By BKPM, Domicile Letter, Company Tax ID, and Company Registration Certificate.
Even though the process is simple, you may have a concern with securing an Indonesia work permit fast. Cekindo can help you in this area. Further, with our team of lawyers, you can have a power of attorney if you wish us to process the application on your behalf.
Despite the name, this office cannot engage in direct commercial transactions in the country. It can act as a selling or buying agent but should do so on behalf of the mother company. It also cannot issue invoices. However, it is a good office to set up for any marketing-related activities.
The process of having a foreign trade representative office is very similar to option 2. You still need to have someone to manage it. However, only those with at least three years of working experience and related educational background can work as a representative head or assistant to the main representative.
In order to set up this office, there are several steps to follow:
Competition among foreign investors is getting more intense, so you should set up as soon as possible. Our company is here to provide you with all the support you need. Call us at +6221 806 60999 to talk to one of our specialists in representative office registration in Indonesia.