Registering a Representative Company in Indonesia

Representative Office (KPPA) provides a solution for foreign companies to establish their presence in Indonesia without opening a physical office. Representative office also can be utilized for activities such as sales, marketing, market research, and others.

The Benefits of Representative Office in Indonesia

Low Incorporation Cost

A Representative Office is a cost-effective alternative for foreign entrepreneurs who want to enter the Indonesian market. If you are still uncertain about your target market or business partners, a Representative Office can help you to comprehend the Indonesian market.

Visa Sponsorship

Representative Offices in Indonesia have the capability to sponsor both residence and work permits for foreign employees. Furthermore, they can also act as business visa sponsors for business partners who intend to visit Indonesia for business purposes.

Organizational Structure

Representative Office can be an alternative for employers with a more flexible organizational structure, where only one chief executive is required.

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Representative Office Registration Process in Indonesia

The process of registering a representative office in Indonesia involves various stages, such as documentation administration and specific requirements in accordance with the applicable regulations.

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Obtaining A Representative Office (KPPA) License

Representative office permits can be obtained by submitting an application to the Ministry of Law and Human Rights of the Republic of Indonesia (Kemenkumham RI), then registering at the local Tax Service Office (KPP) and the Investment Agency and Integrated Licensing Services (BPMPT).

Domicile Letter

Foreign investors must provide a domicile letter to indicate the location of your business.

Registration of Tax ID (NPWP)

A valid NPWP is required for securing other companies’ licenses, banking activities, and fulfilling tax obligations.

Company Registration Certificate (TDP) Acquisition

After that, you can apply for another permission (if needed).

Representative Office Registration with InCorp Indonesia

InCorp Indonesia offers services throughout the representative office formation process, starting from document administration, determining the best type of representative office, and carrying out company incorporation.

With experienced professional consultants, InCorp Indonesia helps you to focus on business cores and leaves administrative and licensing issues to the experts. Currently, there are four types of Representative Offices in Indonesia, including:

  • KPPA: Foreign Company Representative Office
  • KPPPA (or KP3A/K3PA): Foreign Trading Company Representative Office
  • BUJKA: Foreign Construction Services Business Entity
  • KPPA MIGAS: Representative Office of Foreign Oil and Gas Companies

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