What You Must Know About Representative Office License Extension Rules

Corporate Secretary Service Indonesia – Foreign construction companies operating in Indonesia through BUJKA representative offices must understand the representative office license extension rules. These regulations govern how construction service representative offices maintain their legal status beyond the initial three-year period.

Understanding BUJKA Representative Offices

BUJKA (Construction Services Business Agency) representative offices allow foreign construction companies to operate in Indonesia. These offices can provide construction consulting, design services, and project supervision. They cannot directly perform construction work but serve as important liaison offices between foreign parent companies and Indonesian partners.

License Validity Period

Initial BUJKA representative office licenses remain valid for three years. Companies must apply for extension before the expiration date. The extension process follows specific representative office license extension rules established by Indonesian authorities.

Extension Requirements

To qualify for license extension, companies must meet these requirements:

Performance Evaluation

• Submit activity reports for the previous license period
• Demonstrate positive contribution to Indonesian construction sector
• Show compliance with all regulatory requirements
• Provide evidence of proper tax payments

Business Commitment

• Maintain valid Business Business Unit (SBU) qualifications
• Show continuous operation during license period
• Demonstrate ongoing market development activities
• Provide parent company support guarantees

Documentation Requirements

• Complete extension application form
• Previous license copies
• Updated company documents
• Tax compliance certificates
• Activity reports for entire license period

Application Process

The extension process follows these steps:

Preparation Phase

• Gather required documentation 90 days before expiration
• Conduct internal compliance audit
• Prepare activity and financial reports
• Obtain necessary certificates

Submission Phase

• Submit application through OSS system
• Pay applicable processing fees
• Provide additional information if requested
• Track application status regularly

Evaluation Phase

• Authorities review company performance
• Verify compliance with regulations
• Assess business activities and contributions
• Make extension determination

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Key Considerations

Timing Requirements

Submit extension applications at least 60 days before license expiration. Late applications risk operational interruptions.

Compliance Record

Maintain clean compliance history throughout license period. Violations may affect extension approval.

Business Activity

Demonstrate active and legitimate business operations. Inactive offices may not qualify for extension.

Common Reasons for Rejection

Applications may face rejection for these reasons:

• Non-compliance with regulations
• Incomplete documentation
• Poor performance record
• Late application submission
• Tax payment irregularities

Extension Approval Factors

Authorities consider these elements when evaluating extensions:

• Economic contribution to Indonesia
• Knowledge transfer to local workforce
• Compliance with construction standards
• Positive business track record
• Commitment to future investment

Post-Extension Requirements

After successful extension, companies must:

• Continue regular activity reporting
• Maintain compliance with all regulations
• Renew necessary certifications
• Prepare for next extension cycle

Professional Assistance

Consider professional like PortCorp help for extension processes. Experts understand the representative office license extension rules and can ensure proper documentation and timely submission.

Strategic Planning

Develop a license management strategy that includes:

• Calendar reminders for key dates
• Document preparation timelines
• Compliance monitoring systems
• Relationship management with authorities

Understanding the representative office license extension rules ensures continuous operation of your BUJKA representative office in Indonesia. Proper planning and compliance management make the extension process straightforward and successful.

Always monitor regulatory changes that might affect extension requirements. Indonesian authorities occasionally update policies and procedures for foreign representative offices.

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 understanding the representative office license extension rules. 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!