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.
