How to Start a Business in Bali for Foreigners

Bali remains one of the most popular destinations in Indonesia to start a business. As Indonesia continues to reform its regulations, foreign investors, business owners, and companies should understand how these changes can positively or negatively impact your company set up in Bali.
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Options to Set Up a Company in Bali

Registering a Local PT Company in Bali

A Local Company is suited for investors starting a business in sectors that remain partially or fully closed off to foreign investments, contact us for more detailed information.

Start a Local PT

Setting Up a PT PMA Company in Bali

A foreign-owned company is the common company type or structure most foreign businesses and investors start in Indonesia. It allows you to have full ownership of your company, employ foreigners, and provide sponsorship for business visas, among many others.

Register a PT PMA

Establishing a Representative Office in Bali

A Representative Office (KPPA) is also commonly known as a Branch Office. This is designed for foreign investors or businesses who are interested in assessing market potential without sinking in a hefty amount of paid-up capital. Or, does not plan to have any sales/revenue-related activities (e.g.: call center).

The benefits of starting a Representative Office include zero investment plan, zero corporate income tax reporting, and being able to hire foreigners, among many others.

Establish a KPPA

Business Entity Options for Foreign Investors in Indonesia

  • Foreign-Owned Company (PT PMA)

  • Nature
    • Allows profit-generating business activities
    • Allows up to 100% foreign ownership
    • Ideal for business sectors not restricted to foreign investment
    Structure
    • Min. 2 shareholders (corporate/individual)
    • Min. 1 local director
    • Min. 1 comissioner (can be a foreign citizen with a work permit)
    Capitalisation
      Min. paid-up capital IDR 10 billion
    Benefits
    • Can sponsor work and stays permits for foreigns employees
    • Full foreign ownership, thus full control of business

  • Local Company (PT)

  • Nature
    • Allows profit-generating business activities
    • Allows only local ownership
    Structure
    • Min. 2 shareholders (corporate/individual)
    • Min. 1 local director (can be foreign/local)
    • Min. 1 comissioner (Indonesian)
    Capitalisation
      Min. paid-up capital for local PT as follows:

    • A micro-enterprise: less than IDR 1 billion
    • A small enterprise: IDR 1-5 billion
    • A medium enterprise: IDR 5-10 billion
    • A large enterprise: more than IDR 10 billion
    Benefits
    • Lower incorporation cost compared to PT PMA
    • No business restrictions

  • Representative Office (RO)

  • Nature
    • Not allowed to generate financial income
    • Ideal for testing the water before actual company incorporation
    Structure
    • No shareholder or director is required
    • One chief executive is sufficient
    Capitalisation
      No capital is required
    Benefits
    • Lower incorporation cost as no capiral is required
    • Can sponsor work and stays permit for foreign employees
Nature
  • Allows profit-generating business activities
  • Allows up to 100% foreign ownership
  • Ideal for business sectors not restricted to foreign investment
Structure
  • Min. 2 shareholders (corporate/individual)
  • Min. 1 local director
  • Min. 1 comissioner (can be a foreign citizen with a work permit)
Capitalisation
    Min. paid-up capital IDR 10 billion
Benefits
  • Can sponsor work and stays permits for foreigns employees
  • Full foreign ownership, thus full control of business
Nature
  • Allows profit-generating business activities
  • Allows only local ownership
Structure
  • Min. 2 shareholders (corporate/individual)
  • Min. 1 local director (can be foreign/local)
  • Min. 1 comissioner (Indonesian)
Capitalisation
    Min. paid-up capital for local PT as follows:

  • A micro-enterprise: less than IDR 1 billion
  • A small enterprise: IDR 1-5 billion
  • A medium enterprise: IDR 5-10 billion
  • A large enterprise: more than IDR 10 billion
Benefits
  • Lower incorporation cost compared to PT PMA
  • No business restrictions
Nature
  • Not allowed to generate financial income
  • Ideal for testing the water before actual company incorporation
Structure
  • No shareholder or director is required
  • One chief executive is sufficient
Capitalisation
    No capital is required
Benefits
  • Lower incorporation cost as no capiral is required
  • Can sponsor work and stays permit for foreign employees

Doing Business in Bali with InCorp

Find out first-hand, what it takes to do foreign investment into Indonesia and do business setup in Bali. InCorp has helped our clients rethink structure and cost to deliver on business ROI. While staying on top of regulations with tailor-made solutions.

  1. We provide 1-to-1 guided consultation
  2. Consultations are assisted by an in-house legal and compliance department
  3. Our aim is to deliver transparent quotes and pricing
  4. International consulting team with English-speaking local consultants
Book a Meeting Now

The Steps to Setting Up a Business in Bali

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Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

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