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Visa Services and Business Consulting in Bali > Blog > Advices > Representative Office in Indonesia — Why to Set It Up?

Representative Office in Indonesia — Why to Set It Up?

Establish company in Indonesia

Many entrepreneurs do not make a point of the representative office establishment because PT PMA companies do not require it. Nevertheless, it is worth noting that there are many benefits to overseas office formation. 

A limited liability company can stand to gain from the representation of their corporation abroad. See why numerous foreign companies think of the representative office setting up overseas. Especially, it refers to the Indonesian location. The list of advantages is presented below.

Absence of Any Capital Requirement

According to the main regulations, all PMA companies should obtain a specified paid-up capital. Foreign-owned establishments in Indonesia have to perform at least $175,000 of a paid share capital (it equals 2.5 billion of Indonesian rupiah).

At the same time, representative offices are free from this requirement because all the regulations are centered on the overseas capital of the parent company. Therefore, the PMA representation brings lower costs to entrepreneurs in an absolutely legal way.

Permit for a Bank Account Opening

The overseas office affords grounds for the bank account setting-up that brings more comfortable and faster transactions. Any financial operations are possible between an Indonesian billing address and the account of the parent company.

Local Sales & Delivery Permission Note

The overseas office is not only an official representation of the foreign-owned company, but the way of representation of services and product items in Indonesia. Note that the legal model of such a goods provision is to serve customers under the name of the holding corporation. 

This is the only limitation to take into account. It is worth noting that it is a great chance to form a powerful Indonesian-based client portfolio and increase market outreach.

Allowed Employment

The PMA representation office allows the use of KITAS for hiring a head and a head assistant at a time. If entrepreneurs would like to sign on foreign workers, one more KITAS application is required. 

As can be seen, the overseas office increases business opportunities and brings profit to the PMA establishment, staff, and the parent company as well.

How much does it cost?

For your convenience, we have made an approximate calculation of opening a base Representative office in Indonesia. Please download our current quotation below.

Assistance and Consultancy

Do not hesitate to contact us for consultations regarding all the peculiarities of the Indonesia-based investing campaign establishment. We will be pleased to assist you in your business endeavors.

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