A Representative Office (RO) is a legal entity in Indonesia that can be established by a foreign company to conduct non- commercial activities, such as market research, promotion and liaison activities. A RO cant engage in any commercial activities, such as buying or selling goods or services, or signing contracts.
Here are some important points to note about Representative Offices in Indonesia:
- Purpose
The primary purpose of a RO is to support and promote the business interested of the parent company in Indonesia. This can include market research, product promotion, and establishing business contacts with potential partners and costumer.
- Non Commercial activities : A RO cant engage In any commercial activities in Indonesia. This means that it cannot generate any revenue or profit, or enter into any contract or transactions with third parties.
- Limited scope : A RO only permitted to engage in a limited scope of activities, as specified in its establishment permit. Any activities outside of this scope may requires the establishment of a separate legal entity, such as Limited Liability Company (LLC) or a Joint Venture.
- Staffing : A RO is allowed to employ staff in Indonesia, but it is subject to restrictions on the number of foreign employees it can hire. The RO must also ensure that its employees have the appropriate.
PROS to having Represntative Office in Indonesia :
Cost Effective — This is because a RO is subject to fewer legal and regulatory requirements and does not have to engage in commercial activities.
Business Networking — A RO can also help foreign companies to establish and maintain relationships with potential partners, customers, and stakeholders in Indonesia. This can help to build trust and establish a positive reputation in the local market.
Market Research —A RO can help foreign companies to conduct market research and gather information about the local market and potential business partners. This can help companies to make informed decisions about entering the Indonesian market
Only logged in customers who have purchased this product may leave a review.
Reviews
There are no reviews yet.