Starting a business in Bali by opening a coffee shop is a good choice because of its simplicity and the handsome profit that will come with it. Plus, who doesn’t like coffee? You can do this in major parts of the island. The good news is, opening a coffee shop in Bali will not require huge start-up capital.
We know many foreigners planning on opening a coffee shop in Bali have no idea how to start at first. Basically, all you need to do is to register your business as a small business and acquire the necessary licenses. However, as simple as it sounds, you’re still going to work through a significant amount of paperwork and regulations, which might put you on the fence for a second.
But don’t worry, because Cekindo will help you through this in the following guide so that you can be your own boss without hassles in the shortest period of time. Read on.
Starting A Business in Bali: Opening A Coffee Shop is A Profitable Business
Starting a coffee shop in Bali can be simple with the right assistance from a professional, but it is never that easy. If it was, everyone would be doing it. However, the profits you get at the end of the day will be worth the effort you put in.
The thriving economy in Bali, exotic atmosphere, and a burgeoning number of tourists in all seasons are definitely some contributing factors to why it is heaven to open a coffee shop on the island.
But, there are more reasons, as you can see in the following:
- Ingredients, equipment, workers, and other materials are affordable in Bali
- Affordable living expenses make your venture in Bali cost less
- Prices tourists pay in a coffee shop in Bali are the same rates they are used to paying elsewhere, thus you can make bigger profits, benefiting from the lower Indonesian currency rate.
- Rental is much lower than that of western countries
- Wages are also lower compared to other Asian countries, making hiring employees very affordable
How to Set up a Coffee Shop in Bali
Starting a coffee shop in Bali allows you to have the best of both worlds as you can basically enjoy life on the island while at the same time working towards your business success.
The very first step to fulfill this goal is to choose the right entity for your coffee shop in Bali. In general, there are two common legal entities available for business establishment on the island:
PT (Local Company)
PT stands for Perseroan Terbatas in the Indonesian language; it is a local company that has to be fully owned by Indonesian. Though the setup is simple, it is often not the most preferred choice for foreigners who would like to expand their business to Bali. Or in your case, opening a coffee shop or a small cafe.
PT PMA (Foreign-owned Company)
PT PMA, also known as Perseroan Terbatas Penanaman Modal Asing in the Indonesian language, is a limited liability company that is most commonly established by foreign investors. PT PMA allows a foreigner to be the owner of the coffee shop.
The good news for foreign investors is that, according to the latest Negative Investment List under the Indonesian Law, foreigners can own 100% of their coffee shops in Bali.
Once you have established your PT PMA, you will need to apply for different permits from the Ministry of Culture and Tourism in order to run your coffee shop in Bali.
The first permit you will need to obtain is the Tanda Daftar Usaha Pariwisata (TDUP). In general, the validity of a TDUP is 5 years.
Isn’t it a good idea to also sell alcohol and play music in your coffee shop in Bali in order to attract more customers? If you are interested in doing so, then you will need to apply for special permits called SIUP-MB and/or NPPBKC for selling alcohol and intellectual property licenses for playing music with copyright.
How Cekindo Can Assist
Do you need more details regarding the licenses you need before you can open your coffee shop or do you have questions related to company registration or business incorporation procedure in Bali?
Our team of professional consultants and legal experts can help you. Get in touch with us today by filling in the form below or visit our office in Badung. You can also stop by our other offices in Jakarta and Semarang if you happen to be there.