Home Blog Prospective Sectors To Start A Small Business in Bali in 2025 Bali | Business Setup | Company Registration Prospective Sectors To Start A Small Business in Bali in 2025 InCorp Editorial Team 11 September 2024 7 minutes reading time Table of Contents Can Foreigners Start A Business in Bali? Cost of Starting A Small Business in Bali Type of Businesses You Can Open in Bali The Guide to Starting A Small Business in Bali Start Your Small Business in Bali with InCorp Bali offers exciting opportunities for entrepreneurs starting a small business in 2025. As the island continues to attract tourists and expatriates alike, now is the perfect time to explore the most promising sectors for starting a small business in Bali. Can Foreigners Start A Business in Bali? Yes, foreigners can start a business in Bali, but there are certain restrictions on the types of businesses they can establish. Foreign investment is allowed only in sectors that are open to foreign ownership. Cost of Starting A Small Business in Bali Starting a small business in Bali for foreigners involves various costs, including initial setup expenses and ongoing operational costs. How much does it cost to start a business in Bali? The exact amount will depend on the business type, scale, and specific requirements. Initial Setup Costs Company Registration: Costs vary depending on the business entity chosen. Legal Fees: Hiring a lawyer for the registration process and providing legal advice. Office Space: Rental costs vary based on location and size. Equipment and Supplies: Costs depend on the business’s needs. Ongoing Costs Taxes: Corporate income tax, VAT, and other taxes apply. Permits and Licenses: Fees for obtaining necessary permits. Salaries and Wages: Costs for hiring employees. Utilities: Costs for electricity, water, and internet. Marketing and Advertising: Costs for promoting your business. Other Considerations Living Expenses: Costs for accommodation, food, transportation, and healthcare. Contingency Planning: Plan for unexpected expenses. Type of Businesses You Can Open in Bali With a diverse market fueled by tourism, local culture, and digital innovation, foreigners can open several businesses in Bali. Here’s a look at the key business sectors where you can start a small business in Bali. Hospitality and Tourism There is a high demand for services catering to the millions of visitors to Bali each year. This includes accommodation providers such as hotels, resorts, villas, food and beverage establishments, transportation services, and other tourism-related businesses. Whether opening a guesthouse or launching a tour company, opportunities in this sector are vast and varied, making it a promising area for entrepreneurial ventures. Creative Industries With the island’s rich cultural heritage and a growing number of events, there is a strong demand for creative professionals in areas like design, photography, videography, and art. Entrepreneurs with skills in these fields can tap into Bali’s thriving artistic scene, collaborating with local and international clients on projects ranging from weddings to brand campaigns and positioning their businesses for long-term success in this dynamic sector. Online Businesses The rise of the internet and digital technologies has opened up immense opportunities for foreigners to start small businesses in Bali from home and anywhere in the world. With its solid expatriate community and growing digital infrastructure, Bali is an attractive location for digital entrepreneurs, whether they run e-commerce stores, offer online services, or create digital content. READ MORE:Starting a Lifestyle Business in Bali: A Simple GuideStarting a Business in Bali the Right Way without These 5 Mistakes Short-term Property Rental Investors in this sector are banking on “revenge travel”—where people vacation after being cooped up—to kick in. While vaccination programs are being rolled out globally, investors are taking this opportunity to capitalize on low rental prices and cheaper buildings. One reason the property remains a popular option for foreigners is its flexibility—the property can be used to draw in passive income as a short-term rental on Airbnb or as a holiday home when visiting Bali. Property maintenance and access to water, electricity, and Wi-Fi are easy. However, renting land or property can be complex due to land and property ownership regulations. As an investor, it’s important to ensure that all necessary documents are in order, including land titles, zoning regulations, certifications, and proof of ownership. Investing in a piece of land is no small feat and a long-term commitment. Although due diligence and background checks are rare in Bali, they are affordable services you should engage in before making any long-term commitment. F&B Services The culinary industry offers many opportunities for starting a small business in Bali. That said, the competition in this sector is stiff, which has attracted many daring entrepreneurs and seasoned restauranteurs to set up shop. Despite this intensity, Bali continues to attract culinary enthusiasts worldwide with new business ideas, from food trucks to cloud kitchens and coffee drive-thru. In addition to establishing a company to run the restaurant, new owners often require advice on KITAS, land and property ownership, and hiring their first few staff. Please find out how opening a restaurant in Bali speeds up outsourcing administrative and regulation-heavy tasks. Retail: Fashion, FMCG & Services Bali’s retail industry has suffered more than the F&B sector—most closed businesses (along with popular shopping belts in Seminyak and Canggu) are in the retail industry. With so many foreclosures, this could be a rare opportunity for new brands to enter the market. But will Bali’s retail be so different post-pandemic? Or will shop space give rise to a new type of tenant? Pieter Levels, who runs nomadlist.com, has projected that the global Digital Nomad community will reach one billion by 2035. The rise in the digital nomad population and the possibility of a digital nomad visa in Indonesia could shape the type of shops and services that would fill up vacant units in Bali. Prospective business owners planning to set up a shop in Bali might need to cater to both travel and local consumers when deciding on the types of products and price points. Trade & Export With abundant natural resources, land, and human capital, exports are a key contributor to Indonesia’s economy. Indonesia—SEA’s biggest economy—has recorded a monthly trade surplus since May 2020 as coronavirus-related restrictions in the sector started to ease, and trade players were rushing to catch up. Josua Pardede, an economist with Bank Permata, predicts Indonesia will sustain a post-trade surplus for some time due to high commodity prices. Furniture, handicrafts, artifacts, gems, and apparel remain the top few exports for Bali and Indonesia. New trade actors planning to enter Bali must start a Trading Company. READ MORE:4 Tips for Maximizing ROI for Your Bali PropertyHow to Apply for a Multiple Entry Business Visa in Bali, Indonesia? The Guide to Starting A Small Business in Bali Here are the steps for establishing your business in Bali and navigating the legal and administrative processes efficiently. Choose Your Business Activity Research permitted business activities for foreigners on the Investment Coordinating Board (BKPM) website. Choose an activity that aligns with your interests and goals. Determine the Legal Entity PT PMA (Foreign-Owned Limited Liability Company): PT PMA Bali is the most common choice for foreigners, offering full ownership and the ability to employ foreign staff. Local PT Company: Requires all shareholders to be Indonesian citizens. Register Your Business Register your business with the Ministry of Law and Human Rights in Bali. Choose between online or in-person registration. Obtain A Business License Secure a business license from the local government. Get A Tax Identification Number (NPWP) Register for an NPWP at the nearest tax office. This is essential for managing your business’s taxes. Open A Business Bank Account Establish a dedicated business bank account. Your NPWP will be required for this step. Secure A Business Visa If you plan to work within your business, obtain a business visa from the Indonesian Immigration Office. This visa ensures compliance with immigration regulations. Guide to Doing Business in Bali & Lombok Mailchimp Free eBook Bali & Lombok Updates Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Download Start Your Small Business in Bali with InCorp Doing business in Bali requires expert guidance to navigate local regulations, ensure legal compliance, and streamline the setup process. This makes managing the administrative, tax, and licensing requirements easier. InCorp Indonesia offers a comprehensive range of services to help you navigate the complexities of setting up a business in this tropical paradise. Our key services include: Company Registration: We’ll handle all the paperwork and formalities to ensure your company is registered efficiently and legally. Business License: We will assist you in obtaining the necessary business licenses and permits. Working KITAS: We’ll guide you through securing a working KITAS for you and your foreign employees. Business Visa: We’ll help you obtain the appropriate business visa to enter and operate your business in Bali. Investor KITAS: If you’re investing in Bali, we can assist with obtaining an investor KITAS. Fill out the form below to turn your Bali business dreams into reality. Read Full Bio Verified by David Susandi Branch Manager – Bali Office at InCorp Indonesia Holding 11 years of experience in various roles, including project manager, operational manager, and corporate strategist, David Susandi is a prominent figure for many entrepreneurial organizations expanding in Indonesia. Frequently Asked Questions What kind of license does a PMA company need to get? In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types: Business Identification Number (NIB) Low-risk businesses needing only an NIB Standard Certification Standard Certification is necessary for medium-low and medium-high-risk businesses Licenses/Permits High-risk businesses require licenses/permits Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM). Can a foreigner become a director or commissioner of a company in Indonesia? Yes, in a foreign-owned (PT PMA) company, a foreigner can be a director or a commissioner Are there investment facilities provided for foreign investors in Indonesia? A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances. Import facilities Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production. Tax holiday The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status. Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy. Tax allowance For companies in certain designated areas or regions, the government may provide the following tax concessions: Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration. Accelerated depreciation and/or amortisation deductions An extension of tax losses carried forward for a maximum of ten years A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents The applicant eligible has to meet high-level-criteria for the above tax facilities: High investment value or for export purposes High manpower absorption High level of local content Investment allowance The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project. Super deduction This facility could be granted to certain businesses, such as: 60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame. Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities. Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia. Can an individual or a business organization be a shareholder in a PMA company, and is there a minimum number required? A limited liability corporation is required by Indonesian company law to have two or more shareholders, who may be either a legal entity or an individual. The foreign investor must find a second shareholder to own shares in the PMA firm for investments that are 100% open, which could be an affiliated party. Get in touch with us. Lead Form Subscribe Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. 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