Home Blogs Registering a Representative Office in Indonesia Registering a Representative Office in Indonesia InCorp Editorial Team 31 January 2019 3 minute reading time Table of Contents Why Do You Need to Set Up a Representative Office in Indonesia? The Benefits of Representative Office in Indonesia Registration Process of a Representative Office in Indonesia Starting a Representative Office in Indonesia with Cekindo Why Do You Need to Set Up a Representative Office in Indonesia? A representative office means market presence without large capital investment. The primary purpose of representative offices in Indonesia is testing the water before the actual company incorporation. Furthermore, a representative office might conduct market research, approach potential clients and build brand awareness of your business. However, no activities that generate profit are allowed, and this is the prominent factor that distinguishes a representative company in Indonesia from other legal entities. The Benefits of Representative Office in Indonesia Low Incorporation Cost As mentioned, a representative office (RO) is an affordable way of how to penetrate the market in Indonesia. Whether you are not sure about your target audience or the presence of business partners, these companies will help you to understand the Indonesian market properly. Visa Sponsorship Even though representative offices are not permitted to generate revenues, they are entitled to sponsoring work and stay permits for their foreign employees. Moreover, an RO can sponsor a business visa for business partners coming to Indonesia. Organisational Structure To establish a representative office in Indonesia might be the most feasible solution for many entrepreneurs due to its lenient corporate structure. As opposed to a foreign company no shareholder or director is required, and only one chief executive is sufficient. Registration Process of a Representative Office in Indonesia Step 1: obtaining a representative office (KPPA) license Step 2: obtaining domicile letter from the local subdistrict Step 3: applying for taxpayer registration number (NPWP) Step 4: getting a company registration certificate (TDP) Starting a Representative Office in Indonesia with Cekindo Cekindo is a one-stop market entry provider that will assist you throughout the whole process of representative office formation. We will not only advise you on the most suitable type of an RO but also incorporate the company on your behalf. Currently, four types of representative offices are available: KPPA: General RO of a Foreign Company KPPPA (known as KP3A or K3PA): RO of a Foreign Trading Company BUJKA: RO of a Foreign Construction Service Company KPPA MIGAS: RO of a Foreign Oil and Gas Company Let us guide you through the representative office registration process and achieve the best results promptly. Fill in the form below or visit us in one of our offices located in Jakarta, Semarang or Bali and we will provide you with a free quotation on your business.
Home Blogs How to Set Up a Local PT Company in Indonesia How to Set Up a Local PT Company in Indonesia InCorp Editorial Team 31 January 2019 2 minute reading time Table of Contents Benefits of a Local PT Company in Indonesia for Foreigners Registration Process of a Local PT Starting a Local Company with Cekindo Local Company (PT) is the most common legal entity in Indonesia. Even though a local company is intended for Indonesian citizens only, there are some circumstances under which a foreign investor can incorporate a local company in Indonesia as well. Benefits of a Local PT Company in Indonesia for Foreigners Even though there are other legal entities particularly designed for foreigners — a limited liability foreign-owned company and representative office — starting a local company might bring more benefits to some foreign entrepreneurs. Not Restricted from Some Business Fields The Negative Investment List is a document that regulates foreign ownership of businesses based on business sectors they operate in. Thus, some business activities are fully closed to non-domestic investors, and some are partially limited. On the other hand, a local company is not a subject to this regulation, and it might be the only choice how to start a business in Indonesia in your field. Lower Incorporation Costs In comparison with a foreign-owned company, the paid-in capital of a local company is much lower. In general, it ranges from IDR 50,000,000 up to more than IDR 10,000,000,000. The amount of the capital defines the size of the company, which further determines whether a company is eligible to sponsor a work permit for a foreign worker (and how many). Small : IDR 50,000,000 – 500,000,000 Medium : IDR 500,000,001 – 10,000,000,000 Large : above IDR 10,000,000,001 Registration Process of a Local PT STEP 1: COMPANY NAME APPLICATION Submit your company name to Ministry of Law & Human Rights STEP 2: ARTICLE OF ASSOCIATION PREPARATION This requires presence of a notary STEP 3: DEED OF ESTABLISHMENT APPROVAL Deed of Establishment is approved by Ministry of Law & Human Rights STEP 4: CERTIFICATE OF DOMICILE ACQUISITION Obtained from local government to show business location STEP 5: TAXPAYER REGISTRATION NUMBER (NPWP) APPLICATION To secure other licenses, fulfill tax obligations and open a bank account STEP 6: BUSINESS IDENTIFICATION NUMBER (NIB) APPLICATION Application is done via Online Single Submission (OSS) system STEP 7: COMPANY REGISTRATION CERTIFICATE (TDP) ACQUISITION After, you can apply for additional licenses (if required) Starting a Local Company with Cekindo If you are not sure what type of company is suitable for your business, contact us via the form below or visit us in one of our offices located in Jakarta, Semarang and Bali. Cekindo will assist you to establish your local company in Indonesia based on your needs.