What Kind of Company is Legal to Acquire Property in Bali?

Bali, the enchanting Indonesian paradise, offers an array of options for acquiring property, catering to the desires of foreign investors and business enthusiasts. However, navigating the complexities of buying property in Bali can be daunting, as some structures come with rules and regulations. 

Buying Property in Bali: Legal Company Structure Options

To facilitate a smoother buying and owning your own property in Bali, we’ll explore the various legal company structures available and provide a clear roadmap for your property ownership journey.

1. Local Limited Liability Company (PT)

Traditionally, a common choice among property investors in Bali is through a Local PT or a Local Limited Liability Company. However, recent stricter investigations by the BKPM have made this option more challenging. 

It’s essential to be aware of potential issues, particularly concerning income matching the property’s value. However, this practice can offer a legally binding agreement when executed correctly.

2. Foreign Limited Liability Company (PT PMA)

Establishing a Foreign Limited Liability Company (PT PMA) is a preferred route for property ownership in Bali. PT PMA allows foreign entities to have “Hak Milik,” or full freehold ownership, making it the most commonly chosen legal entity for foreign investors in Bali. 

To set up a PT PMA, you’ll need a well-drafted business plan, an active local bank account with the required investment capital, and ongoing business operations.

Acquiring property through PT PMA offers several advantages:

• Full freehold ownership is granted to foreigners.
• Legal agreements protect your rights.
• Disputes can be resolved in international courts.
• Unlike “Hak Pakai,” you can own or lease multiple assets within the company.
• You can obtain a right-to-build permit for property construction.
• Renting out or selling property to generate income is permitted.
• The PT PMA can receive payment.

Why Choose PT PMA for Property Acquisition

Acquiring property through PT PMA stands out as the preferred choice, and for good reason:

• Secure full ownership rights.
• Legal protection through robust agreements.
• Access to international courts for dispute resolution.
• Flexibility to own or lease multiple assets.
• Building permits for construction projects.
• The opportunity to generate rental or sales income.
• Capability for the PT PMA to receive payment.

InCorp Indonesia: Your Trusted Partner for Property Acquisition

Navigating the intricate laws and regulations surrounding property ownership in Bali can be challenging. Therefore, seeking expert guidance at various stages is crucial, from establishing your legal entity to purchasing or renting property on the island.

InCorp Indonesia is your ultimate business solution provider for Bali property acquisition needs. Our dedicated team of consultants is ready to work closely with you to understand your requirements and provide timely advice and solutions. Let us simplify your journey to property ownership in Bali.

Let’s start a conversation about your business needs. Fill out the form below, and we’ll guide you through every step of your property ownership venture in Bali.