Liaison Office in Indonesia

Updated on Monday 27th November 2017

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Indonesia is a unique country from a company formation procedure point of view because of the types of structures available for foreign companies interested in setting up offices here. For example, foreign companies are allowed to establish subsidiary companies, but the branch office is not regulated by the local legislation. However, the Indonesian liaison office is governed by several laws and is accepted by the authorities.

Our company formation consultants in Indonesia can offer a detailed definition of the liaison or representative office.
 

Legislation related to the Indonesian liaison office

Foreign companies interested in setting up an establishment in Indonesia and choosing the representative office must comply with the Companies Act which provides for 3 types of liaison offices:

-          the general or foreign liaison office, shortly known as KPPA;
-          the liaison office for trading, known as KP3A;
-          the liaison office for foreign construction companies, also known as BUJKA.

Based on the type of representative office a foreign company decides to open in Indonesia, various types of activities can be performed by these. However, none of the offices is allowed to issue invoices. The licenses for liaison offices in Indonesia are issued for periods of minimum 2 months and up to 5 years.

Our Indonesia company incorporation agents can explain the legislation related to setting up a representative office.
 

How to set up a representative office in Indonesia

The Indonesian representative office must be registered with the Trade Register. The following documents must be filed upon the registration of a liaison office in Indonesia:

-          an application form;
-          letters of intent and statement for setting up the office;
-          a letter of appointment of the representative agent;
-          a reference from the Indonesian embassy in the country of the company opening the liaison office;
-          a work plan;
-          a letter from the Ministry of Manpower for the employees of the office;
-          a foreign employment license, if the parent company wants to transfer a foreign employee.

It should be noted that the Indonesian liaison office must have at least one employee.

For full information on the requirements to create a liaison office in Indonesia, please contact our local advisors. We can also help those interested in starting a business in Indonesia.
 

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