Establishing a Representative Office in Indonesia
If your company is a multinational corporation planning to expand into Indonesia, establishing a representative office is the right choice. A representative office allows you to monitor and coordinate business activities, conduct market research, and build networks without requiring a significant upfront investment.
Representative Office
A Preliminary Solution for Business Expansion
A representative office is an ideal option for companies looking to explore the Indonesian market without significant financial commitment. Although a representative office cannot engage in commercial activities such as selling goods or services, importing, or exporting, you can still :
- Arrange Work Permits for expatriate managers who will lead the representative office.
- Obtain Multiple Entry Business Visas for business visits related to representative office activities.
Why Choose a Representative Office ?
Many companies opt to establish a representative office during the market research phase or when they want to test the feasibility of a business concept before establishing a foreign investment company (PMA). Here are some of the key benefits of establishing a representative office :
- Simple Establishment Process
The requirements for establishing a representative office are relatively straightforward compared to other types of entities. - No Large Investment Required
There is no obligation to deposit a minimum capital amount, giving the company more flexibility in managing resources. - Simplified Documentation
You only need to report employee income tax and office space tax, reducing administrative burden.
How to Establish a Representative Office in 3 Easy Steps :
- Obtain a Representative Office Business License
Submit your application through the Online Single Submission (OSS) system provided by the Indonesian government. - Obtain a Tax Identification Number (NPWP)
The NPWP serves as the taxpayer identification required for all tax transactions in Indonesia. - Obtain a Business Identification Number (NIB)
The NIB functions as a business identity and is required for various other administrative purposes.
Entrust Your Representative Office Establishment Documents to Harmony
By following these steps, your company can quickly begin to leverage business opportunities in Indonesia through a representative office. Harmony is ready to assist you at every step of this process, ensuring that all administrative and legal requirements are met efficiently.