A representative office is an office set up by a company, usually in a foreign country. Representative offices handle the parent company’s business in its location.
Indonesia has several types of representative offices and one type is the general representative office (KPPA).
It can perform tasks to support its parent company and can act as a liaison or coordinator for the parent company in Indonesia.
Some business functions KPPAs can do include:
Another reason for a company to open a representative office is to create business relationships and better understand a foreign market it wishes to enter. Opening a KPPA is a suitable option for companies who want to do market research or conduct feasibility studies in Indonesia.
This type of legal entity may only conduct activities for the interest of its parent company or companies affiliated with the parent company. There are limits to the activities a KPPA can do.
Should you wish to do any of the above activities, you will have to open a limited liability company with direct foreign investment (PT PMA).
There is no minimum capital requirement for KPPAs so the parent company can open one with any reasonable amount relevant to the planned business activities of the office. However, the parent company must meet the following prerequisites to set up a KPPA in Indonesia:
Setting up a KPPA is simpler and does not take as long as setting up a limited liability company. In the table below, you will see a list of the documents obtained in the process to set up the KPPA along with how long it takes for Emerhub to gather them.
|Documents obtained||Timeline in working days|