Foreign Company Representative Office (KPPA- Kantor Perwakilan Perusahaan Asing) is an office incorporated by an overseas company to represent it-self in Indonesia. Foreign Company Representative Office has limited functionality and generally are prohibited from directly engaging in operational activities; signing contracts; issuing official invoices, receiving payments from its clients, and directly engaging in any other profit generating activities.
The functionality of KPPA is limited to:
Manage the parent company’s corporate interests and/or
Prepare the establishment and development of its business in Indonesia.
Required Documents
• Articles of Association of the foreign parent company including amendment(s) in English – Legalized by Notary and Indonesian Embassy
• Copy of registration at Chamber of Commerce of parent company – Legalized by Notary and Indonesian Embassy
• Copy of a valid passport of the head of the representative office
• Copy of identification card number and tax number/NPWP (of Indonesian national) if the chief are Indonesian
• Legalized Letter of Intent from the head of company
• Legalized Letter of Statement from the chief of the rep office about the willingness to live in Indonesia, and will not conduct other works or business besides the activity of the representative office.
• Legalized Letter of Appointment from the head of company
• Legalized Power of Attorney to sign the application if being represented by another party
PROCEDURES
Estimate Time (Working days)
• KP3A License from the Online Single Submission (OSS) including Business Identification Number (Nomor Induk Berusaha/NIB);
1
• Letter of Domicile of the representative office
3
• Tax identification number (NPWP)
2
• Company registration certificate (TDP)
14
Representative office is not allowed to :
Search for income from sources inside Indonesia, including carrying out activities or doing anything related to the engagement in and/or sales and purchases of goods or services with a company or individual inside Indonesia,
Participate in any form in the management of a company, a subsidiary or branch office in Indonesia
Important Note:
KPPA can only be incorporated in capital of Indonesian provinces (i.e. Jakarta, Bandung, Yogyakarta, Surabaya etc.)
The location of KPPA must be in office building.
KPPA permit is valid for 3 (three) years and can be extended 2 (two) times for 1 (one) year each.
After 5 years KPPA may be granted extension for different activities than before.
In case Representative Executive is foreigner, he/she must obtain KITAS and Work Permit to stay and work in Indonesia.
