Indonesia Offshore Company Registration Requirements
If you do decide to incorporate an offshore company in Indonesia, you should know certain things prior to the incorporation.
Indonesia has two business entities open to foreigners:
Foreign Investment Limited Liability Company (PT PMA)
Representative office (KPPA)
A PT PMA company or also known as Perseroan Terbatas Penanaman Modal Asing in Bahasa Indonesia is a deal for companies that wants to engage in commercial activities in Indonesia. While foreign investors who seek to engage in market research, networking, or feasibility studies, opting for a representative office (KPPA) is the ideal business route.
However, do note that foreign investors would also be required to comply with the Positive Investment List laid down by the Indonesian government.
A KPPA company or also commonly known as Kantor Perwakilan Perusahaan Asing (KPPA) in Bahasa Indonesia allows foreign investors to create a market presence in Indonesia and similar to PT PMA, a KPPA is usually set up for management reasons. However, its roles are limited to managing, coordinating, supervising, liaising, and representing the main company.
As a KPPA Company, it is important to note that you are not allowed to receive any revenue.