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Company Registration Indonesia: Advisory on Legal Entities
When a foreign investor or business wants to register a company in Indonesia, there are 2 types of legal entities we can help with: Foreign Direct Investment Company and Representative/Branch Office.
Foreign Direct Investment Company (PT PMA)
Foreign Direct Investment Company (or Foreign Owned Company, as we like to call) is a legal entity that can be fully owned by foreign companies or investors. However, the maximum foreign ownership is determined by the business sector and business activities. The restrictions are listed in Indonesia’s Positive Investment List. This type of entity allows foreigners to earn revenue in Indonesia.
Representative/Branch Office (KPPA)
A Representative Office is also commonly referred to as a branch office, foreign companies or investors can fully own a Representative Office. This setup works best for non-sales-related business activities (e.g.: setting up call centers, design houses, market research). It is also an interim solution for preparing the establishment of PT PMA. KPPA cannot earn revenue in Indonesia but is able to hire employees and issue work permits.
