Andhyka CONSULTING 

INDONESIAN COMPANY FORMATION AND REGISTRATION SERVICES 

Indonesian Company Formation and Registration Services

 
 

Foreign Company Representative Office 

A foreign company representative office (KPPA) is open to all kinds of business activities outside the financial sector and should be established with the approval of the Head of BKPM.

 

A foreign company representative office is a useful first step to develop the business interests of a principal foreign company (or foreign group of companies) in Indonesia and prepare for the establishment a new company in Indonesia (usually by way of a PMA Company). 


The foreign company representative office shall be led by one or more Indonesian or foreign citizens considered to be the representative office executive. The appointment of a representative office executive shall be based on the letter of appointment from the relevant foreign company or groups of foreign companies. In order to obtain the license for this type of representative office, the application must be submitted to the Indonesian Investment Coordinating Board (“BKPM”).

 

Business Activities 

The critical limitation of a Representative Office is that they are not allowed to generate income, conduct direct sales and cannot issue Bills of Lading, all transactions will be handled by the parent company.

 

Activities of Foreign Company Representative Office is permitted to:

 

Its role as supervisor, connector, coordinator, and to manage the interest of the company or affiliated companies in Indonesia an/or overseas;

Looking for business partners and establish good relationships with prospective clients in Indonesia on behalf of a foreign company headquarters.

Looking for new business opportunities and / or explore the possibility of establishing new company in the form of foreign investment or PT-PMA.

 
 
 

License and Permits

To establish a Foreign Representative Office, the followings are the permits/licenses shall be obtained; 

 
No
License and Permits
Issued by
1
Approval of Foreign Company Representative Office (KPPA) as main license
Investment coordinating board - BKPM
2
A Domicile letter  as the company address
Local government or district office
3
A tax payer registration number (NPWP)
Tax office or KPP-kantor pelayanan pajak
4
A company registration certificate (TDP)
The local government in accordance with the location address of the company
 
 

Preparations to establish a representative office in Indonesia

At the beginning of establishing Representative Office, the following are important things proposed to be mentioned in the application for approval;

 

Where the address of the representative office in Indonesia?

Determine the location of the business is very important because any change of address must be accompanied by changes to all existing company license and of course this will take time and cost.


Business location and address of the company must be located in commercial locations such as office buildings, industrial area or other location that is can be used as a place of business or office. This means can not use the house / apartmentor as the official address of the company.

 

Who will become the Head of Representative Office?

Foreign companies must determine who will be the head of the representative office ofa foreign company in Indonesia. Can be Indonesian citizens or foreign nationals. 


If the company appointed a head of a representative office is a foreign citizen, he has to have a place to stay in Indonesia and must have a residence permit (visa) and a work permit and of course this will require an additional fee.

 

Employee/or manpower plan

Foreign Representative Office must recruit and employ at least three Indonesian national experts and / or administrative staff. This requirement is commonly referred to as "3: 1 ratio" (3 Indonesia: 1 Expatriate). So if you want to recruit and employ two foreign workers then you should employ six Indonesian workers.

 

The main requirements to open a representative office in Indonesia

 
No
 The main requirements
Provided by
1
Copy of Articles of Association of the foreign company represented and any amendment(s) in English or its translations in Bahasa from sworn translator.
Foreign company
2
Letter of appointment from the foreign company represented to whom which will be proposed as a Head of Representative Office.  This letter must be stamped and signed by the company management (Directors) on company letterhead.
Foreign company
3
Letter of statement concerning the willingness to stay, and only work in the position as the Representative Executive without doing other business in Indonesia.  This letter must be stamped and signed by the company management (Director) on company letterhead.
Foreign company
4
Power of Attorney to sign the application if the management of the foreign company represented by another party.  This letter must be stamped and signed by the company management (Directors) on company letterhead.
Foreign company
5
Copy of valid passport (for foreigner) or copy of identification card number (for Indonesia) who will be proposed as a Representative Executive.
The head of representative office
6
Curriculum Vitae (original) & copy of certificate of the Head of Representative Office
The head of representative office
 
 
 
Procedure and Requirements;
 
No
Procedure
Responsibilty
Average Timeline
1
Complete Application Form for The Establishment of a representative office in Indonesia.

In order to obtain the license for this type of representative office, the application must be submitted to the Indonesian Investment Coordinating Board (“BKPM”). Application for the establishment of a foreign representative office in Indonesia
Client
Depends on you

Instructions for completing the application form, click here

2
Send us the supporting documents (Original and Copy), that are provided by the overseas principal company in English or its translations in Bahasa from sworn translator.
Client
Depends on you
3
Make first payment for our fee (50%) of the total cost,  after we send the invoice to you
Client
Depends on you
-
Upon completion of the above:
 
 
1
Reviewing the application and supporting documents, that are provided by the foreign company
Our Team
1-2 days
2
Submitting the application form (attached with the supporting documents) to BKPM
Our Team
1-2 days
3
Monitoring the license approval process
Our Team
Every 2 days
4
Approval of foreign company representative office (KPPA) license from BKPM
BKPM
10 days
-
Upon completion of the above:
 
 
1
We will send you the copy of approval by email.
Our Team
0,5 days
2
Send us photocopy of the contract or lease an office.  This is required to process the company's domicile
Client
Depends on you
3
Applying for a letter of domicile of company from the local government ( (attached with the supporting documents).
Our Team
2 days
4
Applying for a tax registration number (NPWP).  (attached with the supporting documents)
Our Team
1 days
5
Tax registration number (NPWP) 
KPP - Tax Office
3 days
-
Upon completion of the above;
 
 
1
Make second  payment for our fee (50%) of the total cost  after we send the invoice to you after we send the invoice to you by email.
Client
Depends on you
2
Applying for a company registration certificate (TDP) from the Company Registration Office  (attached with the supporting documents).
Our Team
1 days
3
Approcal of TDP
Local goverments
10 days
-
Once the process is complete;
 
 
1
We will send a company's documents (original) to the company address or any other address as instructed by you.
Our Team
2 - 5 days
 
 
 
 
UA-55767628-1