Representative Office: Efficient for Market Research
Establishment cost around $2,000 and takes about 2 months.
Why not consider establishing a representative office first?
- Do you want us to research the Indonesian market before establishing a company?
- Do you need to conduct research over the long term rather than short term?
- Do you want to know the procedures for establishing a representative office?
- Do you want to completely outsource the representative office establishment process?
Supporting Casual Entry into Indonesia
Representative Office Establishment Service
While you cannot conduct sales activities in Indonesia, establishing a representative office primarily for research purposes is highly effective as a preparation period before formally establishing a domestic or foreign corporation. If you are seriously considering future expansion into Indonesia, we recommend establishing a representative office.
Table of Contents(Click to jump to the section you want to read)
- 01
-
Benefits of Establishing a Representative Office
We explain the benefits of establishing a representative office, divided into four main categories.
- 02
-
Support Scope for Representative Office Establishment
A general overview of the services we provide.
- 03
-
Required Documents for Representative Office Establishment
Detailed explanation of each document required for establishment.
- 04
-
Questions About Representative Office Establishment
Introduction to common questions about the establishment process.
- 05
-
Schedule for Representative Office Establishment
A step-by-step explanation of the establishment procedure.
4 Benefits of Establishing a
Representative Office
The biggest advantage of a representative office compared to company establishment is the ability to easily reach the Indonesian market. While the Indonesian market is attractive, success is a separate matter, so we recommend first establishing a representative office to explore the possibility of success in Indonesia.
-
Speed
You can establish a representative office in about 2 months, without spending 4-5 months as required for foreign company establishment.
-
Cost
The cost of establishing a representative office is cheaper than company establishment, with setup costs of around $2,000.
-
Market Research
While a representative office cannot conduct sales activities, it offers flexibility for all other types of research.
-
Risk
This approach has significantly lower risk than immediately establishing a company in Indonesia, where market entry barriers are high.
Types of Representative Offices
| Commercial Representative Office | Foreign Company Representative Office | Construction Representative Office | |
|---|---|---|---|
| Purpose | Market research and promotion | Preparation for establishing foreign investment companies | Preparation for construction services in Indonesia |
| Jurisdiction | Ministry of Commerce | Investment Coordinating Board | Ministry of Public Works |
| Permitted Activities | ・Introduction of foreign company products ・Market research for promotion and sales |
・Supervision of subsidiaries and affiliates in Indonesia ・Coordination with overseas headquarters ・Preparation for establishing foreign investment companies |
・Participation in bidding for construction projects, contract signing, implementation of construction work |
| Prohibited Activities | ・Direct trading or sales activities in Indonesia ・Participation in tenders ・Contract signing, etc. |
・Business operations of subsidiaries/affiliates beyond supervision and coordination ・Activities generating revenue |
・Activities generating revenue |
| Officers | 1 Indonesian or foreign person | 1 Indonesian or foreign person | 1 Indonesian or foreign person |
| Capital | No requirement | No requirement | No requirement |
| Bank Accounts | Both company and employees can open accounts | Both company and employees can open accounts | Both company and employees can open accounts |
| Notes | ・Need to employ 1 Indonesian for each foreign worker ・Foreign workers must have at least a bachelor’s degree or equivalent and a minimum of 3 years experience in their field |
・If the director is a foreigner, Indonesian workers must be employed according to regulations | ・Construction license from the Ministry of Public Works is required when accepting construction work |
Support Scope for Representative Office Establishment
-
Drafting Application Documents
We prepare the documents that you need to fill out.
-
Application Procedures in Home country
We provide guidance on procedures at the Indonesian Embassy that you need to complete.
-
Application Procedures in Indonesia
Our tax consultant will handle the application procedures on your behalf in Indonesia.
Documents Obtained After Establishing a Representative Office
・Representative Office Establishment Approval Letter (Surat Persetujuan Pendirian KPPA)・Corporate Taxpayer Identification Number (NPWP)
Required Documents for Representative Office Establishment
| Submission To | Required Documents | Person in Charge |
|---|---|---|
| Indonesian Embassy in Your country | ・Application Letter ・Original and one copy of Letter of Appointment ・Original and one copy of Letter of Intent ・Original and one copy of Letter of Statement ・Certificate of Company Registration (Complete Historical Corporate Registry or Current Corporate Registry) (English translation not required) |
Client |
| Indonesian Embassy in Indonesia | ・Resume of the Representative Office Chief and apostilled graduation certificate (in English) ※If the Representative Office Chief is Indonesian, resume/graduation certificate is not required |
Client |
| PT. TRICRUISE MARKETING INDONESIA | ・English translated and apostilled Certificate of Company Registration and Articles of Association (Complete Historical Corporate Registry or Current Corporate Registry) |
Client ※If there have been changes to the Articles of Association, both the original and amended versions are required |
| PT. TRICRUISE MARKETING INDONESIA | ・Copy of passport if the Representative Office Chief is a foreigner ・Copy of residential registration and taxpayer identification number if Indonesian |
Client |
| PT. TRICRUISE MARKETING INDONESIA | ・Representative Office rental agreement/certificate of residence/building permit | Client (If the address is in Jakarta, we can arrange the contract on your behalf: additional fee) |
| PT. TRICRUISE MARKETING INDONESIA | ・Representative Office Incorporation Form | Client |
The following information is also required
・Purpose of establishing the representative office・Residential information of the representative
Questions About Representative Office Establishment
-
What types of representative offices are available in Indonesia?
-
In Indonesia, there are “Commercial Representative Offices” for market research and promotion, “Foreign Company Representative Offices” for establishing and developing foreign investment companies, and “Construction Representative Offices” for preparing construction services in Indonesia.
-
What are the characteristics of each type of representative office?
-
Commercial Representative Offices require the employment of 1 Indonesian for each foreign worker. For Foreign Company Representative Offices, if the director is a foreigner, Indonesian workers must be employed according to regulations. Construction Representative Offices require obtaining a construction business license from the Ministry of Public Works when accepting construction work.
-
Are there any requirements for officers when establishing a representative office in Indonesia?
-
When establishing a representative office in Indonesia, you need to appoint one officer who can be either Indonesian or foreign.
-
How much capital is required to establish a representative office?
-
No capital is required. However, you will need funds for costs incurred after establishment, such as recruitment and various research expenses.
Schedule for Representative Office Establishment
-
Document Preparation
You will need to prepare the necessary documents for the application.
-
Document Submission
You will submit (mail) the documents to the Indonesian Embassy.
-
Document Receipt
You will receive the authenticated documents from the Indonesian Embassy (delivered to you).
-
Document Sharing
You will share the authenticated document data with our company.
-
Document Filing
Our tax consultant will apply online with the documents you provided.
-
Result Report
The representative office establishment is complete (approximately 10-15 business days after application).
Time required for establishment: About 1.5 to 2 months
※It may take longer if preparing the necessary documents requires more time.Back Office Support After
Company Establishment in Indonesia
-
Accounting & Finance Outsourcing
- Tax Filing Services (Monthly)
- Tax Filing Services (Annual)
- Bookkeeping Services
- Accounting Services
-
HR & Labor Affairs Outsourcing
- Payroll Processing
- Attendance Management
- Expense Management
- Company Policy Development
-
General Affairs & Secretarial Outsourcing
- Restaurant and Shop Reservations
- Various Research Services
- In-house Interpretation and Translation
- Communication with Government Agencies
-
Legal Affairs Outsourcing
- Contract Drafting
- Contract Review
- Correspondence with Relevant Ministries
- Other Legal Support
Case Studies of Clients Who Established
Representative Offices in Indonesia
-
We were happy to have established a representative office prior to full-fledged expansion.
Web/IT Company
The more we researched the appeal of the Indonesian market, the more we felt its significant advantages. However, the quantity and quality of information were insufficient to make a decision about actually entering and competing in the market. Therefore, we decided to establish a representative office to advance our market research.
-
We appreciate the smooth, efficient, and supportive establishment of our representative office.
Cosmetics Manufacturer
Establishing a representative office was an entry format that was easier to consider than establishing a foreign corporation, both in terms of speed and cost. When entrusting this task, what made us glad we chose TRICRUISE MARKETING INDONESIA was that their staff person was careful to maintain thorough communication and reporting practices.
We are experts for Entering the Indonesian Market
-
Research
EOR / VISA
Formation
Supporting foreign companies in expanding to Indonesia.
