Representative Office (KPPA) Formation
When a foreigner wants to engage in market surveillance, networking, explore business opportunities or provide other managerial support in Indonesia to the parent company abroad, he needs to establish a (general) foreign representative office (in Indonesian: Kantor Perwakilan Perusahaan Asing, abbreviated KPPA).
Find Out About Representative Office (KPPA)
Indonesia regulates KPPA technically in Investment Coordinating Board Regulation Number 4 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities (BKPM Regulation 4/2021).
It frequently occurs that a foreign investor opens a representative office in Indonesia first in order to ‘get to know the market’. If his findings are positive, then he can open a PT PMA. The advantage of opening a representative office first is that it requires no large capital investment and it is a relatively easy and quick way to establish a legal entity in Indonesia.
Based on BKPM Regulations, KPPA is allowed to hire foreign executives to serve as representatives in Indonesia, in addition KPPA can sponsor business visas for KPPA guests or clients who are interested in coming to Indonesia.
KPPA applies the following restrictions:
1. as supervisor, liaison, coordinator, and managing the interests of the company or its affiliated companies;
2. Preparing for the establishment and business development of PMA companies in Indonesia or in other countries and Indonesia;
3. Located in an office building in the provincial capital;
4. Not seeking any income from sources in Indonesia including not allowed to carry out activities or conduct any commercial sales and purchase of goods or services with companies or individuals in the country; and
5. Not participate in any form in the management of a company, subsidiary or branch company in Indonesia.
Registration Of Representative Office (KPPA) with Accura Indonesia
Accura Indonesia will help you to set up for KPPA. For your reference, we provide KPPA formation Planning Assistance is as follows:
- Letter of Appointment of Chief of Representative Office.
- Letter of Statement by Parent Company
- Power of Attorney by Parent Company.
- Obtaining the Business Identification Number (Nomor Induk Berusaha) or NIB
- Obtaining the Tax Id KPPA
- Opening Bank Account Assistance
- Advice: Add Working permit and Kitas for chief of KPPA
How To Set Up Representative Office (KPPA)
To provide a complete business consultation, Accura Indonesia will help you set up a KPPA Document. You can consult with our expert to get the tailored services you need. Here are the steps that you need to understand to prepare the required documents for Set Up KPPA in Indonesia.
Why Choose Us
Your business matters will be handled accordingly and professionally.
The service provided by Accura Indonesia is effective and efficient, tailored to your KPPA’s strategic goals.
We streamline the setup company for approximately 10 working days to keep the focus on your business strategies.
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