mistakes when starting a business in bali

New Entrepreneurs in Bali, Start Right by Not Making These 5 Silly Mistakes

InCorp Editorial Team

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Tropical climate, natural forests, sunshine beaches and laid-back lifestyle are among the things that make Bali a paradise for entrepreneurs interested in starting a business on the island.

Known as the Island of God in Indonesia, Bali has shown a rapid increase in the number of tourists and foreign startups. Driven entrepreneurs strike out on their own to turn their ideas into reality by launching their dreams on this beautiful island.

However, not everyone who has come here can make their dreams come true. It’s not about Bali itself, it’s about the mistakes that most entrepreneurs commit when they are new to the scene.

Therefore, in this article, we have prepared a list of mistakes you should avoid if you want to have a long and successful business in Bali.

Avoid Making These 5 Mistakes when Starting a Business in Bali

starting a business in bali

1. Register a New Company without a Business Plan

A lot of entrepreneurs want to start a company in Bali without a good business plan. A business plan is critical because it clearly states your business activities and classification (KBLI) before you go ahead with the company registration.

Without a refined business plan, you’re risking paying significant amounts of money for changing licenses, which may cost the same as a new company registration.

2. Work without a KITAS

One of the most common mistakes committed by new entrepreneurs in Bali is to work illegally. In other words, you work without a work visa and stay permit or KITAS from the Ministry of Manpower.

The process of acquiring a KITAS can be challenging due to the change of regulations and foreigner’s unfamiliarity to the laws. Working illegally without a KITAS can make you lose your business, get fined or even get deported from Indonesia. A consultation with a visa specialist is highly recommended before application.

3. Engage in an Unsafe Special Purpose Vehicle Arrangement

It can be extremely risky if you use professional shareholder/director/commissioner services (make Special Purpose Vehicle arrangements) with family or friends when you start your business in Bali. You may lose total control of your company with such an unofficial structure.

Special Purpose Agreement can be beneficial to your business only when you do it properly through a licensed firm. A licensed firm can ensure that you will have agreement that is legit under the Indonesian Laws.

4. Use an Unqualified Company Registration Service Provider

In the business world, it is vital to understand who you’re dealing with when it comes to working together. New entrepreneurs in Bali are often more susceptible to fall into the trap of unprofessional agents who claim to be able to help them with company registration.

More than often, these deceitful agents do not have the knowledge of the current legislation and do not know the difference of various legal entities foreigners can choose from.

So, you must find a company registration agent whom you have gone through proper checks and research.

5. Lease Property without Due Diligence

Before leasing a property for your business in Bali, it is highly recommended for you to hire a professional to perform the due diligence – to check all property documentation to make sure they comply with Indonesian legal requirements.

For instance, your building permit (IMB) must be the kind that is appropriate for your company registration in Bali.

How Cekindo can be of Assistance

Cekindo is a business consulting firm dedicated to assisting entrepreneurs to build competitive and sustainable companies, giving startups the highest probability of long-term success in Bali.

We have the tools and resources needed to start your new endeavors with your startups in the shortest period of time

Furthermore, with years of professional experience through assisting businesses of diverse industries, our experts at Cekindo can help you run a successful business and guide you on an experiential journey towards sustainable business growth.

We offer full support in company registration and other business solutions for various business sectors.

For full information on how to establish a thriving company in Bali, please contact us through the form below.

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.

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