Start with business facts, not entity labels
List customers, contract term, project location, people, equipment imports, revenue and future expansion. The structure must support delivery, not merely registration.
Understand the KDIPA process
The official KDIPA process includes application preparation, document and business-proposal assessment, decision and post-approval establishment. The investor should substantiate the proposal and maintain licence conditions.
Compare liability, control and exit
A branch commonly links liability more directly to the parent; a company can create separate governance and liability boundaries; a partner model requires stronger shareholder, deadlock and exit arrangements.
Align the route with the project contract
Customer eligibility, tendering, security, subcontracting, payment and commencement should align with when the entity can legally operate, using licensing conditions precedent where needed.
Action checklist
- 01Confirm activity, customers and project duration
- 02Verify KDIPA and alternative-route eligibility
- 03Compare parent liability, governance and foreign control
- 04Model approval, setup and operational timing
- 05Analyse tax, customs, people and premises
- 06Build licensing and exit into the contract plan
Common mistakes
- Assuming KDIPA automatically applies to every activity
- Using a branch without assessing parent liability
- Setting project commencement before licensed operations