Representative Office
Foreign Representative Offices (KPPA) in Indonesia serve as non-commercial entities that allow foreign companies to conduct market research, build networks, and coordinate activities without conducting direct transactions. The establishment of KPPA offers various benefits, including a deeper understanding of the local market, reduced risk, and ease of business network building. KPPA is a strategic step for foreign companies to prepare for business expansion in Indonesia with more manageable risks and simpler administrative processes
What is KPPA?
Representative Office in Indonesia
Acknowledged as Business Entity – Decree of Trade Ministry No. 10/M-DAG/PER/3/2006 with its amendment Decree of Trade Ministry No. 49 of 2020
As commonly know to KPPA (Kantor Perwakilan Perusahaan Asing), this type of entity in Indonesia is to provide foreign investors to study the market before establishing a Company in Indonesia. A KPPA can be registered from various fields or industry.
If the Mother Company has trading business as their main activity, then the Representative Office can act as a sales agent for the Company. It plays a role in conducting market research, building networks with local businesses and preparing marketing strategy for the company’s products or services. By establishing Representative Office, foreign investors can understand the dynamic of Indonesian market, reduce business risks and prepare the ground for potential business expansion more efficiently and effectively.
KPPA IS BENEFICIAL FOR THE INVESTORS
Before entering a new market in a foreign country, it is common for investors to understand and study the diversification of demands. KPPA in Indonesia helps business owners to easily access the local market, expand their presence and explore more business opportunities. There is no capital requirements for KPPA and all activities of the Representative Office is being managed and controlled by the financial management of the principal company overseas.
STEPS AND REQUIREMENTS to establish a KPPA in Indonesia
Legal Documents requirements from the principal company
Certain documents and legalizations are required before establishing the Representative Office or KPPA in Indonesia.
Preparation of Application Documents
To submit an application of KPPA establishment, the principal company must prepare Letter of Intent, Letter of Appointment and Letter of Statement.
Appoint a Chief of Representative Office
A KPPA in Indonesia is managed by a Chief of RO to later act as representative of the KPPA in various activities. The appointment can be to local/foreign individual.
Acquire Letter of Reference
This is crucial as the Letter of Reference will be submitted at once with all application letters through the OSS (Online Single Submission) Indonesia.
Business Registration Number / Nomor Induk Berusaha - NIB
Submitted through the Online Single Submission System (OSS) Indonesia.
Tax Identification Number (TIN/NPWP)
From the Local Tax Office and KPPA can only be established within the provincial city in Indonesia.
Benefits of using our service in Representative Office:
Local Representation
With our legal assistance, you can establish local connection without being physically presence in the country during the process.
Legal Compliance Guidance
Navigate the complexity of requirements with our guidance and experiences in the field.
Hassle-Free and Easy
Our experts aim to facilitate you to gain the simplest yet most effective ways to start your business expansion.