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Representative Office

Establishment Of Representative Office

Besides establishing a PT in Indonesia, you can also establish a representative office in Indonesia. Establishing a Representative office in Indonesia is easier compared to establishing a local PT or PMA (Froeign Direct Investment).

For this reason, Indo-Ned Consultancy provides services for the establishment of representative offices in Indonesia. The following is a further explanation of the types of representatives in Indonesia:

Benefits on setting up Representative Office

There are several benefits from the establishment of a Representative Office in Indonesia by Foreign Companies:

1. No Capital Requirement

Unlike a Foreign-owned Limited Liability Company, Foreign Representative Offices are not required to make any capital commitments. Investors don’t have to comply with regulations concerning minimum amount of capital.

2. Capability to Handle Sales and Delivery

Foreign Representative Offices are allowed to do the sales and delivery of their products and/or services, with the limitation that they need to charge their clients from the Parent Company. Investors can use this to prepare the establishment of a Foreign Direct Investment (FDI) Company (Perusahaan Modal Asing) in Indonesia by gathering a strong client portfolio prior to the establishment.

3. Rights to Obtain Non-Permanent Stay Permit (KITAS)

Foreign Representative Offices are allowed to hire Foreign Citizens (Expatriates) as experts and apply for Non-Permanent Stay Permit (KITAS) so that they will be able to legally stay and work in Indonesia. However, KITAS only be given by the rule that for each foreign national working at the Representative Office, there has to be at least 3 (three) Indonesian citizen employees.

If you want to set up a Representatice office in Indonesia or start doing business in Indonesia Contact us for more details.

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