Representative Office License Indonesia: Validity and Requirements
Corporate Secretary Service Indonesia – Foreign companies entering Indonesia often choose a Representative Office structure. This arrangement allows market presence without full commercial operations. Your representative office license Indonesia serves as the primary authorization for these activities.
What is a Foreign Company Representative Office?
A Representative Office (KPPA) acts as a liaison for foreign companies in Indonesia. Major corporations like Google and TikTok use this structure. The office can perform specific non-revenue generating activities:
- Supervising company interests
- Coordinating with affiliated companies
- Preparing for future foreign investment
- Conducting market research
The Indonesian government regulates these offices through BKPM Regulation No. 4 of 2021.
Types of Representative Offices
Indonesia recognizes four categories:
- Foreign trading company representative offices
- Foreign company representative offices
- Foreign construction service representative offices
- Foreign electricity support service representative offices
Each type has specific permitted activities. Choose the category matching your business objectives.
License Validity Period
Your representative office license Indonesia remains valid as long as your office operates in Indonesia. There is no fixed expiration date. However, you must maintain compliance with all regulations. The license falls under Indonesia’s low-risk business category, requiring only a Business Identification Number (NIB).
Application Process
Follow these steps to obtain your license:
- Access the OSS RBA system at https://oss.go.id/
- Log in with your credentials
- Select the Representative Office menu
- Choose Application
- Complete all required data fields:
- Principal office information
- Indonesian office details
- Activity descriptions
- Supporting documentation
- Submit required documents:
- Articles of Association
- Letter of Appointment
- Letter of Intent
- Letter of Statement
- Letter of Reference
- Review and confirm your self-declaration
- Issue your business permit
Ongoing Compliance Requirements
After obtaining your representative office license Indonesia, you must:
- Report activities to BKPM every six months
- Maintain office presence in a provincial capital
- Avoid commercial transactions in Indonesia
- Refrain from managing local subsidiaries
Benefits of the Representative Office Structure
This arrangement offers advantages:
- Faster establishment than full foreign investment
- Lower compliance requirements
- Market testing capabilities
- Relationship building opportunities
Common Challenges
Companies often encounter:
- Document preparation complexities
- Understanding activity restrictions
- Reporting obligation management
Professional services help navigate these challenges while maintaining compliance.
Key Considerations
Before establishing your office:
- Verify your business qualifies for representative office status
- Ensure understanding of activity limitations
- Prepare all required documentation in advance
- Establish systems for semi-annual reporting
Your representative office license Indonesia provides market access while complying with local regulations. Proper maintenance ensures continuous operation without legal complications.
For companies seeking Indonesian market presence without immediate commercial activities, this structure offers an optimal solution. The indefinite validity period provides stability for long-term planning and relationship development.
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