Starting a Business in Indonesia by Setting up a Foreign Representative Office.
To start a business in Indonesia, a foreign entrepreneur, in addition to establishing a limited liability company, can also initially establish a Representative Office for certain activities in accordance with investment law in Indonesia. The following are several options that can be considered.
Based on Ministry of Trade (MoT) Regulation No. 10 Year 2006,KP3A is prohibited from engaging in trading activities and sales transactions from the beginning until the end, such as filing tender,signing contract, and settling claims. It can only act as a selling and/ or manufactures and/or buying agent.
The risk-based business licensing of KPPA shall be classified as a low risk-based business, which only requires an NIB submitted through the OSS system. A KPPA is chaired by a chief of representative office who must reside in Indonesia, does not carry out activities outside the KPPA activities, and does not hold concurrent positions as head of the company and/or for more than 1 (one) representative office.
Like a construction company, BUJKA will be required to obtain an NIB as its business license, and obtain certification in the form of a Business Entity Certificate (Sertifikasi Usaha Konstruksi/SBU) as its commercial license.
Pursuant to Government Regulation No. 25 Year 2021 (GR 25/2021), JPTLA is one of the private business entities that carry out business activities in the field of electricity supporting services, that must obtain a business license and Business Entity Certificate for the electric power support services business (SBU untuk badan usaha JPTLA/SBU BUJPTLA). JPTLA’s business licensing shall be granted to the following types of business:
For further information about setting up a Representative Office in Indonesia,Please contact us now. We are ready to help you.
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