Home Blog Registering a Representative Office in Indonesia Registering a Representative Office in Indonesia InCorp Editorial Team 19 June 2024 3 minute reading time Table of Contents The Benefits of Representative Office in Indonesia Representative Office Registration Process in Indonesia Representative Office Registration with InCorp Indonesia 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. 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. 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: Indonesia recognizes four types of Representative Offices: Foreign Company Representative Office (KPPA) This type of Representative Office is established by a foreign company to oversee and manage its interests in Indonesia. It serves as a liaison for the foreign company’s activities and is involved in coordination and supervision. Foreign Trade Company Representative Office (KP3A) KP3A is a Representative Office specifically designated for foreign trade companies. Its primary role is to represent and manage the interests of foreign trade-oriented businesses in Indonesia. Representative of Foreign Construction Company (PBUJKA): PBUJKA is a Representative Office set up by a foreign construction company. Its activities include overseeing and managing the interests of the foreign construction company in Indonesia, potentially preparing for future construction projects. Representative Office of Foreign Oil and Gas Company (KPPA Migas): KPPA Migas is established by foreign oil and gas companies. This type of Representative Office is dedicated to representing and managing the interests of foreign companies in the oil and gas sector within Indonesia. It may involve activities related to exploration, production, and development in the oil and gas industry. Establish a Representative Office
Home Blog How to Set Up a Local PT Company in Indonesia How to Set Up a Local PT Company in Indonesia InCorp Editorial Team 18 June 2024 2 minute reading time Table of Contents Advantages of Establishing a PT in Indonesia for Foreign Citizens Registration Process of a Local PT Company in Indonesia Local PT Company: The Establishment Process Start a Local PT Company with InCorp Indonesia Advantages of Establishing a PT in Indonesia for Foreign Citizens Although other legal entities, such as PT PMA and Representative Offices, are explicitly created for foreign nationals, establishing a local company can offer more advantages for certain foreign entrepreneurs. Lower Incorporation Costs The capital needed for local companies is significantly lower than PT PMA, with a range of IDR 50,000,000 to over IDR 10,000,000,000. The amount of capital will determine the size of the company and its eligibility to sponsor work permits for foreign workers. Therefore, local companies are categorized based on their capital amount. Small: IDR 50,000,000 – 500,000,000 Medium: IDR 500,000,001 – 10,000,000,000 Large: above IDR 10,000,000,001 Unrestricted in Certain Business Fields The Positive Investment List regulates foreign ownership in different business sectors. Certain business activities may be entirely closed for foreign investors, while others may have partial restrictions. On the other hand, local companies have no limitations and may be the sole option for starting a business in Indonesia in the desired sector. Registration Process of a Local PT Company in Indonesia Local PT Company: The Establishment Process 1. Approval of Company NameThe requirement is for three words that are neither vulgar nor obscene. 2. Deed of IncorporationTo adhere to the regulations, including an Article of Association and having a notary present is necessary. 3. Domicile LetterYou must provide a domicile letter to indicate the location of your business. 4. Registration of Tax ID (NPWP)A valid NPWP is required for securing other companies’ licenses, banking activities, and fulfilling tax obligations. 5. Application of NIBAlong with the NIB, business permits, and location, permits will also be issued one day after registration through OSS. 6. Company Registration Certificate (TDP) AcquisitionAfter that, you can apply for another permission (if needed). Talk to our expert Start a Local PT Company with InCorp Indonesia InCorp Indonesia provides a comprehensive range of services, from document management to obtaining business licenses, supported by experienced and professional consultants. By partnering with InCorp Indonesia, you can concentrate on your business operations while leaving the administrative and licensing tasks to the experts. Start a company