Procedures for Establishing a Representative Office of a Foreign Trading Company or KP3A Setting Up Process Indonesia

Corporate Secretary Service Indonesia – Indonesia holds a unique and strategic position along major international trade routes. With its abundance of natural resources and a large, growing population, the country offers strong economic potential that continues to attract global investors. These advantages have encouraged many foreign companies to explore ways to establish a local presence, often starting by opening a representative office in Indonesia.

A representative office, in this context, refers to an individual, either an Indonesian citizen or a foreign national, or a legal business entity that has received approval to act on behalf of a foreign company. This KP3A setting up process Indonesia allows the foreign business to operate within Indonesia’s borders, primarily for liaison and market development activities, without engaging directly in commercial transactions.

There are four types of representative offices in Indonesia:

1. Representative offices of foreign trading companies,
2. Representative offices of foreign companies,
3. Representative offices of foreign construction service companies,
4. Representative offices of foreign power support services.

A Representative Office of a Foreign Trading Company (KP3A) is a representative office of a foreign trading company established for management purposes. There are three types of KP3A:

1. Sales agents responsible for collaboration and promotional activities,
2. Manufacturing agents responsible for conducting market surveys,
3. Purchasing agents responsible for supervision and collaboration.

The primary function of the KP3A is to promote products owned by its parent company abroad in Indonesia. Like the KPPA, KP3As are prohibited from conducting trade and sales activities in Indonesia. KP3As can be established in office buildings in provincial, city, and regional capitals throughout Indonesia, and KP3As are permitted to open branches anywhere in Indonesia.

Read Also: Understanding RO Indonesia: Key Differences Between a Representative Office and PT PMA

To KP3A setting up process Indonesia, a risk-based permit must be obtained by accessing the website https://oss.go.id/. The requirements for obtaining a business license for a KP3A include:

• Principal office (KP3A) data
• Representative office data in Indonesia
• Representative office activity data in Indonesia
• Articles of Association (AoA) data
• Letter of Appointment (LoA) data
• Letter of Intent (LoI) data
• Letter of Reference (LoR) data
• Letter of Statement (LoS) data

This concludes the brief explanation of Foreign Trading Company Representative Offices (KP3A) and their establishment procedures. The regulations regarding risk-based business licensing services established by the Indonesian government through the Investment Coordinating Board (BKPM) have simplified the process for obtaining business licenses and facilitated investment for foreigners.

So, don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business, also when you need KP3A setting up process Indonesia. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!