Trading Representative Office (KP3A)
A trading representative office (Kantor Perwakilan Perusahaan Perdagangan Asing or KP3A) is led by a Representative Executive which can be an Indonesian or Foreigner
Setting up a Trading Representative Office (KP3A)
A trading representative office (Kantor Perwakilan Perusahaan Perdagangan Asing or KP3A) is led by one or more foreigners or Indonesian citizens appointed by the parent company as Representative Executives in Indonesia.
The functionality of trading representative office (KP3A) is limited to:
- Introduce, promote and market the goods produced by a parent company, as well as providing information, or directions for use and importation of goods to companies/users in Indonesia
- Conduct market research and surveillance in Indonesia for domestic sales of goods produced by the parent company
- Conduct market research on the items required by the companies/users in Indonesia as well as providing information about the terms of the export of goods to companies in Indonesia
- Closing and signing of contracts for and on behalf of the company that is appointed by the parent company in Indonesia for the export of goods.
There are three types of trading representative office (KP3A), namely:
- Selling Agent, performing promotional or liaising activities
- Manufactures Agent, performing market survey activities
- Buying Agent, performing supervising or liaising activities
As with all representative offices, a trading representative office (KP3A) isn’t allowed to issue any invoices and all transactions should be under the parent company’s name. Trading representative office (KP3A) is allowed to open a branch office (this is not possible under a KPPA) and may be located in provincial capital cities or in any other city/district within Indonesia.
Basic Requirements of a Trading Representative Office (KP3A)
To apply for KP3A, a license called SIUP3A is required. There are several different kinds based on the function of your representative office.
Head Office SIUP3A – valid for 1 year from the date of issuance
- Original KP3A approval letter from Indonesia Investment Coordinating Board (BKPM)
Temporary SIUP3A – valid for 2 months from the date of issuance
- Letter of Appointment in regards to the Chief Representative Officer by the parent company
- Letter of intent concerning commitment to stay and work without any trading activities as well as selling transaction
- Letter of reference from a Commercial Attaché
- Representative Office Work Plan
- Head of Representative Office documents:
i) Curriculum Vitae or CV
ii) *If Foreign citizen:
– copy of passport or identity card
– copy of foreign work permit (IMTA)
iii) *If Indonesia citizen:
– copy of Personal ID (KTP)
– Tax ID (NPWP)
- Letter of domicile of KP3A from building management or local official
- Power of Attorney to sign the application if being represented by another party
Steps to Register a Trading Representative Office (KP3A)
|1||Apply for SIUP3A temporary license from Online Single Submission (OSS)|
|2||Obtain company Tax Payer Registration Number (Tax ID or NPWP) with the local tax authority|
|3||Obtain Single Business ID Number (NIB) from Online Single Submission (OSS)|
|4||Obtain SIUP3A permanent license from BKPM, if necessary|
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