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Representative Office Registration (KPPA)
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Setting up a Representative Office (RO) in Indonesia can be a practical way for foreign companies to explore business opportunities and establish a presence without fully committing to establishing companies that generate income in Indonesia.
While the actual business transactions and revenue generation remain the responsibility of the parent company abroad. a representative office allows to supervise and coordinate business or do market research without the risk of large investments. This may be an ideal option for businesses that are exploring business opportunities in the Indonesian market.
What a Representative Office in Indonesia Can Do
- Conduct market research
- Promote the parent company’s products or services
- Provide liaison and support services to the parent company
- Prepare for the establishment of a foreign investment firm in Indonesia
- Act as a coordinator, supervisor, or connector for the parent company
- Ensure regulatory compliance
What a Representative Office in Indonesia Cannot Do
- Engage in any commercial activities or generate revenue
- Sell goods or services to Indonesian customers
- Execute agreements or contracts on behalf of the parent company
- Issue invoices or participate in the management of a parent company’s branch or subsidiary
- Apply for an import license
- Participate in any form of management of a subsidiary or branch office in Indonesia
- Import or export goods
What are the main benefits of setting up a Representative Office in Indonesia?
- A representative office in Jakarta is a cost-effective solution for foreign companies exploring business opportunities in
- Indonesia. It allows business entities to establish a presence in the country without setting up a legal entity.
- There is no need for large investments or paid up capital
- There is significantly less paperwork as you will only need to report income tax for the employees as well as office space tax
Document Requirements
- Business license of foreign parent company
- Articles of Association of the foreign parent company, including amendment(s) in English
- Letter of Appointment from the foreign parent company
- Letter of Intent – signed by the Director with the company stamp
- Letter of Statement – signed by the Chief Representative, mentioning the willingness to live in Indonesia and will not conduct other works/business beside the activity of the Representative Office
- Reference Letter from Indonesian Embassy Representative in the principal country
- Representative Business Plan
- Lease Agreement of Office in Indonesia
- Other required document
Set Up a Representative Office in Indonesia with LMI Consultancy
- Consult your inquiry with our professional consultant
- Submit necessary document
- Proceed with the payment
- Application process
- Receive the complete document
Other Popular Company Registration Services in Indonesia
Setup a Business in Indonesia with LMI Consultancy
Established in 2016, LMI Consultancy has been supporting countless individuals in understanding the intricacies of visas, business setup, tax & accounting, and property investment in Indonesia, providing a comprehensive and dependable service.
We take pride in being an ethical and innovative company that places a strong emphasis on exceptional customer service and strives to set a new standard in our industry, guaranteeing a smooth and encouraging experience for our clients.
FAQ
What's the minimum initial capital investment that PT PMA shareholders need to contribute?
Specifically, shareholders need to provide a capital of IDR 10 billion (about USD 660,000). This plan outlines how the company will allocate its capital and resources for its operational activities.
Who can represent the ownership of the foreign investment company?
Determining ownership representation in Indonesian foreign investment companies is complex, varying based on specific regulations. Although some nominee arrangements offer flexibility, restrictions apply, particularly to sectors on the Negative Investment List. To properly address this, you should seek advice from legal and business professionals with Indonesian law expertise.
Do Indonesian PTs, PT PMAs, and other business types face the same tax requirements?
No, the tax burden isn’t uniform across all business types in Indonesia. The tax responsibilities of PT PMAs and PTs include corporate income tax, withholding tax, and VAT, additionally include LKPM for PT PMA. Meanwhile, the Representative office only files withholding tax and LKPM report.
Disclaimer : Our services in LMI Consultancy provide consulting services focused on ensuring client compliance with applicable immigration and legal regulations in Indonesia. We do not provide or facilitate the production of official government documents, nor do we offer any expedited or preferential access to government services.
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