Company registration in Bali

Bali
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Registering a company in Bali opens access to a market with unique prospects for endeavour enhancement in among the popular and dynamically developing regions of Indonesia. The island has long gone beyond the boundaries of a well-known tourist destination and is rapidly turning into a key platform for proprietors who are using the growing prospect of the Indonesian economy. The stable growth of the information tech and communications field, which last year amounted to 9.15%, emphasizes the region's prospects for high-tech and innovative projects. Together with the support of local authorities, Bali is becoming a strategic center for those seeking new horizons for business.

Why open a business in Bali?

Starting a business in Bali presents proprietors unique chances due to the combination of favorable pecuniary criteria and a developed and supportive trade sphere.

Stable political and pecuniary situation
Indonesia has a sustainable pecuniary growth, and Bali, as part of it, offers a stable environment that reduces the perils of pecuniary downturn. From the Organization for Economic Cooperation and Development, Indonesia is projected to have a GDP growth of 5.2% in 2025, confirming its position as among the prime dynamic economies in the territory. Political stability for SME trades provide supplemental guarantees for financiers, minimizing the perils associated with pecuniary downturn or political uncertainty.
A hub for digital nomads
Digital nomadism in Indonesia is becoming increasingly popular among professionals from all over the world, as the island has a thriving community of entrepreneurs and skilled workers, allowing for the exchange of experiences and the expansion of trade contacts. Coworking spaces such as Hubud and Outpost have become magnets for those seeking a productive work environment combined with a tropical atmosphere. Indonesia introduced a digital nomad visa for remote workers, making Bali even more attractive and creating additional chances for hiring skilled workers.
Prospect of remote firm formation
The process of starting a company in Bali is simplified and can be done remotely, saving financiers time and resources. Financiers can go through all the steps without leaving their home country, this approach saves time and reduces costs, making starting a company in Bali more open to transnational financiers.
English as a Business Language
English is widely used in the trade field in the territory, which asserts free interaction with expat associates and access to necessary resources. The introduction of bilingual indentures and contracts reduces language barriers and simplifies work for international organizations.
Progressive tourism industry
Bali remains one of the most popular tourist destinations in Asia, creating a steady flow of customers for trades in the tourism and related industries.
Favorable migration policy
The Indonesian government is executing immigration programs in Bali that supply the mandatory work chances for expat traders, which affects the relocation and trade sequences. Initiatives such as long-term visas for financiers and digital nomads make the relocation sequence more accessible. This allows entrepreneurs not only to develop their business but also to live comfortably on the island. Also, the programs include additional benefits for investors in Bali, such as access to long-term land leases and simplified regulatory procedures related to employment.
Low cost of living and operating expenses
The comparatively low cost of living and doing business in Indonesia, including affordable rents and high labor productivity, helps keep costs down. The average monthly cost of living for one person in Bali is around US$800-1000, including rent, food, and transportation. This attracts not only tourists but also foreign professionals willing to work for competitive rates.
Long-term land lease for foreigners
Recent legislative changes provide translational financiers with the opportunity to lease land on preferential terms, which allows for long-term planning and business development.
State aid for investments
The Indonesian government actively drives translational financing by supplying levy incentives and simplifying regulatory procedures. Entrepreneurs have access to subsidy and grant programs aimed at developing infrastructure, green techs and the tourism industry.

Bali business structures guide

Business development in Bali supplies entrepreneurs with a range of organizational structure options, the technologies of which have their own characteristics, advantages and limitations.

Limited Liability Company (PT)

This firm bears personal responsibility for the speculation trade, implies a more formal organization and larger initial financings, while providing enhanced protection to the proprietors. This form is created for companies centered on the regional trading field and planning to expand or attract additional capital. The establishment of a PT in Indonesia is available only to its residents.

The base stake capital is contingent on the trade category and its size. For SME enterprises, it ranges from Rp 50 million to Rp 500 million, and for large organizations, it starts at Rp 10 billion.

To establish an LLC in Bali, you need at least two originators, who must be individuals or licit firms.

Company with translational financings

A Foreign Investment Entity permits expats to possess shares in a business in Bali. It gives more management and control chances than a PT.

The prime merits of PT PMA include the option of employing translational specialists, which allows the firm to sponsor work visas and trade visas for associates and clients. The base limit for the founding capital of a foreign-invested enterprise in Bali is Rp 10 billion (approximately USD 630,000). In addition, Indonesian statute sets the percentage of translational proprietorship contingent on the industry, which is reflected in the Negative Investment List.

When establishing a PT PMA in Bali, a minimum of two founders, who are participants or licit enterprises, as well as a commissioner and a director are necessitated. The commissioner’s main task is to supervise the work of the supervisors and control their schemes.

Representation

Translational organizations that are not ready to immediately begin full-fledged commercial schemes can open a representative office in Bali. Its main purpose is to study the market, establish business contacts and propel the brand, but without the right to study commercial schemes and acquire revenue. This form is useful for firms that want to minimize perils and test the region before launching a business in Bali.

For example, an IT company can open a representative office of the organization to meet with clients and find local specialists, without selling its services. This structure also consents for lower costs and simplification of the production sequence on the market, while remaining under the control of the parent firm.

The representative office must be fully controlled by the parent company registered outside the polity. The head is appointed as the chief representative, who can be either a translational citizen or a local resident. However, foreigners are necessitated to get an appropriate work visa and permit.

Also, such organizations are not engaged in commercial schemes and do not receive revenue.

Joint venture

A Joint Venture is a form of organization in which translational and local financiers pool resources to jointly conduct business in Bali. This structure consents translational financiers to partake in the oversight of the firm while maintaining abidance with local statutes.

In such a trade structure, the proprietorship stakes are cut between translational and external associates in abidance with the undertakings and prerequisites of Indonesian statute. In some fields, constraints on the share of translational participation are applied, which is reflected in the Negative Investment List.

Joint ventures in Indonesia usually take the form of LLCs or translational -invested firms.

The minimum authorized capital prerequisites are determined by the chosen form of organization and the scope of schemes. For PT PMA in Bali, the authorized capital is 10 billion Indonesian rupiah (approximately 630,000 USD).

For a JV, a minimum of two pioneers are required, who can be licit enterprises or participants. Additionally, it is necessary to select an authorized representative and a manager.

Key industries for doing business in Bali

The island offers chances for starting a trade, providing preferential conditions for both opening new trades and financing in existing firms.

Trade

This field remains among the key fields for financiers. In recent years, there have been prime alterations in legislation, including an expansion of the list of fields open to translational capital. Translational financiers can now fully own firms in a range of fields, which was previously limited.

Retail trade remains particularly popular, as growing interest in imported products among locals and tourists drives demand. Bali is an ideal platform for launching trades related to the import of clothing, electronics, leisure goods and premium products. Moreover, the island’s strategic location and access to ports make it a convenient base for trade both within Indonesia and with transnational markets.

Tourism

Tourism forms a significant share of the island's GDP. Every year, Bali is visited by millions of tourists from distinct countries, which creates a steady demand for services in the hotel, restaurant and excursion business.

Bali's popularity as a tourist destination is due to its natural beauty, unique culture and developed infrastructure. For entrepreneurs, this opens up a variety of chances: from opening boutiques, resorts and restaurants to creating specialized excursion programs such as yoga retreats, eco-tourism or gastronomic tours.

The government actively aids the enhancement of the field via subsidy and grant programs, as well as attracting financiers to infrastructure projects, which makes speculations in the tourism business in Bali especially profitable.

Real estate

The Bali real estate trading field is showing steady growth, remaining among the most profitable sectors for investment. The steady demand for residential and commercial real estate is provided by both tourists and expats, who increasingly choose the island for living and working.

Investments in real estate in Bali are often associated with the creation of infrastructure for the tourism business, which makes them even more promising. The stable growth of land and rent prices guarantees high returns on such investments.

The island is becoming a center for the development of environmentally friendly production and tourism.

The development of the fashion, art and IT sectors provides additional chances for international companies that want to integrate into the local market.

Bali is an important player in Indonesia's agricultural field, offering speculation chances in organic production, export crops and processing.

Algorithm for establishing a company in Bali

Starting a business in Bali requires careful abidance with all lawful sequences. To do this, you must go through a number of mandatory steps.

The first step is to define the structure of the enterprise according to its type of activity. Then you should convey an enrollment for consent of the company name. The application should include at least three options so that the regulatory authorities can choose the best one.

After the name is approved, the firm draws up a list of constituent indentures, including the charter and the memorandum of association, and submits the papers for registration. They must be drawn up in Indonesian and certified by a notary.

The next step is to enroll the firm with the Ministry of Justice and Human Rights, during which it acquires the status of a legal entity.

Next, you need to contact the Tax Administration to obtain a TIN number, which is required for performing financial schemes and fulfilling levy onuses.

The next phase is to enroll with the Online Single Submission system to obtain a Business Identification Number. This serves as the primary permit for performing business and replaces a number of other licenses. Depending on the type of activity, additional permits may be required.

Once all permits have been obtained, it is necessary to open an account at a local bank. The authorized capital, which is contingent on the type of organisation and the industry, is deposited into this account.

The process of establishing a company in Bali requires strict abidance to all legal directives and the preparation of a large amount of documentation. To avoid mistakes and delays, it is recommended to consult a lawyer.

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How much does it cost to start a business in Bali?

Initiating a trade in the polity requires a significant initial investment and regular monthly expenses that vary according to business models. Setting up a PT will cost between USD 64,000 and USD 316,500, a PT PMA will cost between USD 631,200 and USD 631,650, starting a joint venture, depending on the shares, will cost from USD 631,200, and a representative office will cost from USD 500 to USD 1,000. This amount includes the paid-up capital of the enterprise, which depends on its structure, the costs of reserving the company name and preparing indentures.

Given the prime initial and progressive costs, it is important for prospect financiers to develop a detailed business plan in advance that takes into account not only the main expenses but also possible unexpected expenses. For example, the cost of rent and utilities may vary contingent on the location of the office and the level of energy consumption.

It is also worth understanding that the salary of employees can aid the expansion of the trade and the recruitment of more qualified personnel. Also, abidance with the prerequisites of the regional regulator requires regular inspections and monitoring, which may be associated with general expenses.

Bali tax system

Every legal entity is mandated to obtain a Tax Identification Number (NPWP). It is required for paying taxes, submitting monthly and annual tax returns, and fulfilling other tax obligations in Indonesia.

The corporate income tax rate in Indonesia is 22% of the company's profit. Standard VAT rate in Indonesia — 10%. This tax applies to most goods and services provided within the country.

Banking infrastructure for business in Bali

Indonesia's financial system is part of the endeavour sphere that provides firms with access to a variety of services. Commercial banks are available on the island, providing all the necessary services: lending, deposit products, cash management, and translational exchange transactions.

Among the key banks in Bali that work with corporate clients are Bank Negara Indonesia, Bank Central Asia, Bank Mandiri, and Bank Rakyat Indonesia. These organizations operate in the form of basic as well as specialized services that help trades effectively manage their financial flows.

How to open a bank account in Bali?

To open a national bank account in Bali, it is necessary to provide the company's incorporation indentures, including the articles of association, approved tax number, certificate of registration and licenses issued in accordance with the international standard and fill out banking forms indicating information about the company, its founders, supervisors and beneficiaries.

Next The financial institution will check the indentures provided and, if necessary, request additional information. After successful verification, the account will be opened.

Banks' requirements for companies

Banks located in Bali have the following requirements for firms wishing to open a corporate account:

  • the organization must be officially enrolled and possess the appropriate license to operate in the polity;
  • availability of a TIN digit;
  • a physical office within the polity, which proves the reality of the trade.

Accounting and reporting responsibilities for companies registered in Bali

Establishing an organization in Bali requires compliance with Indonesian accounting laws and other regulations.

All companies registered in Indonesia are required to submit financial statements to local tax authorities each year, which include the following sections:

  • balance sheet;
  • statement of fiscal position;
  • cash flow record;
  • alterations in capital.

Fiscal records must include information for the current and previous year and be shown in a comparative format.

Regular pecuniary records are prepared in Indonesian and, if necessary, in a translational language. However, for SME enterprises, the use of a foreign language is not mandatory.

All accounting records must be maintained in Indonesian rupiah. To use the US dollar as the functional currency, approval must be obtained from the Indonesian tax authorities. This application must be conveyed at least three months before the start of the new financial year.

Requirements for public companies in Indonesia

According to the Capital Markets Act, translational firms are authorised to list their shares on the Indonesian Stock Exchange. However, they must first be audited by an auditor recognized by the Financial Services Authority (OJK), the prime overseer of the pecuniary sector in the polity. The annual pecuniary report must be filed with the OJK and made publicly available not beyond the termination of the third month following the date of the annual report. Periodic financial reports must be filed through the OJK's E-reporting system.

Public firms in the polity are obligated to form an internal audit team and set up an internal audit team and appoint a corporate secretary. The audit committee assists the board of overseers in asserting the reliability and effectiveness of the reporting and internal oversight of the firm. In addition, the committee evaluates the threat oversight measures implemented by the team of supervisors and monitors the execution of recommendations from internal and external auditors.

Investment programs and incentives in Bali

Indonesia's investment policy, including Bali, is aimed at attracting financiers to key pecuniary sectors. In 2024, the focus was on programs supporting the development of infrastructure, tourism, agriculture, and innovative technologies. These initiatives will remain relevant in 2025.

Investment incentive programs

The island has several policies that provide benefits to organizations working in priority sectors. Projects aimed at sustainable development and job creation receive special support. The programs provide for simplified administrative procedures, accelerated permitting, and access to government grants.

Levy incentives for business in Indonesia

Companies registered in Bali's special economic zones, such as Kura Kura Bali and Sanur, receive significant levy breaks. There is also a VAT exemption on imports of materials and equipment required for project implementation, and in some cases, an exemption from customs duties.

The Indonesian government actively supports SME trades by providing incentives in the form of a reduction in corporate tax to 0.5% of turnover for organizations with annual income of less than Rp 4.8 billion.

Companies implementing projects in the field of renewable energy, green construction and waste management can count on additional tax incentives. They are provided with accelerated depreciation of assets, reduced income tax and VAT exemption on equipment used for environmental purposes.

As part of Indonesia's long-term strategy to lure financings, incentives for digital tech and research companies are planned to be further expanded.

Trade name requirements in Indonesia

It is necessary to comply with certain rules regarding a firm’s name, formed by the Ministry of Justice and Human Rights. The main criteria are:

  • the title must consist of at least three words;
  • the name must not coincide with or be similar to existing firms (the Legal Entities Information System is used to check uniqueness);
  • It is prohibited to use combinations of letters and numbers that do not carry meaning; the name must reflect the company's schemes and correspond to its goals;
  • For local companies the name must be in Indonesian, translational companies can use English or other languages;
  • the moniker must begin with an indication of the licit form, for example, “PT” for Perseroan Terbatas;
  • It is prohibited to use words that are contrary to morality, as well as names similar to government agencies or existing organizations.

Permits and licenses required for business in Bali

Field of activity

Required license/permit

How to get

All trade organizations

Commercial license

Apply through the OSS online system by providing the incorporation indentures, NIB and trade details.

Companies that use land plots

Location license

Register in the OSS system. You need land indentures (ownership or lease), design documentation.

Construction

Construction license

Appeal to regional authorities (Dinas Pekerjaan Umum). Project indentures and approvals from local authorities are required.

Organizations that impact the ecosystem

Environmental permit

Submit indentures for environmental assessment through the Ministry of Environmental Protection or regional environmental authorities.

Tourism

License for tourism schemes

Registration through OSS or the Ministry of Tourism. Incorporation indentures and proof of abidance with industry standards are needed.

Pecuniary services

Licensed by the Financial Services Authority

Submit an application through OJK, attaching information about the organization and its financial transactions.

Medicine

License from the Ministry of Health

Registration through OSS or local health authorities. indentures proving compliance with health standards are required.

International treaties and agreements affecting trade registration in Bali

Setting up a company in Bali, as in any other region of Indonesia, is regulated not only by national legislation, but also by a number of international agreements in which the country participates. They perform an important function in ensuring the legal security of translational financiers, facilitating international trade operations and creating profitable conditions for trading.

Among the most significant international agreements is the Double Taxation Agreements (DTAs) that Indonesia has concluded with various countries around the world. They are aimed at preventing the same income from being taxed in two jurisdictions at the same time, thereby reducing the tax burden on companies and stimulating international investment. Thanks to the DTAs, organizations registered in Bali can benefit from more favorable tax conditions, making the region attractive to translational investors.

Indonesia is also a party to a number of multilateral agreements of the World Trade Organization, which provide access to global markets and facilitate trade for endeavours. These agreements set the rules for transnational trade, help reduce tariff and non-tariff barriers, and provide a mechanism for resolving trade disputes. For endeavours, this means a more predictable and stable environment for trading of goods and services, as well as the opportunity to participate in international tenders and projects.

An important aspect is the bilateral investment treaties that Indonesia has concluded with countries to protect and encourage translational investment. These agreements provide translational investors with guarantees for the safety of their investments, including protection from expropriation, freedom to repatriate profits and capital, and access to fair and impartial judicial proceedings in the event of disputes. Thus, establishing a company in Bali creates an additional level of confidence in the safety of investments and encourages long-term cooperation with international partners.

Also worth considering are the free trade agreements that Indonesia is a party to. They aim to deepen pecuniary integration between participating countries by simplifying trade procedures, reducing tariffs, and harmonizing standards. The state’s participation in such agreements opens up access to expanded markets, facilitates exports, and helps reduce the costs of international transactions.

Equally important are the intellectual property undertakings that the country has signed through the World Intellectual Property Organization and other international fora. These agreements provide protection for the IP prerogatives of foreign trade in Bali, including patents, trademarks, copyrights, and industrial designs. Strong IP protection encourages innovation and creativity, allowing firms to confidently sponsor novel products and technologies, knowing that their intellectual achievements are safeguarded by law.

Also worth noting is Indonesia’s participation in various international standards and certification systems, which impact the sequences of registering and doing business in Bali. Adopting transnational standards for quality, safety, and environmental responsibility allows firms to meet global prerequisites, making them more competitive in international markets. These requirements include ISO compliance, product certification, and environmental compliance, which is especially relevant for firms performing in the tourism, manufacturing, and tech fields.

Indonesia also actively partakes in regional organizations such as the Asia-Pacific Economic Cooperation (APEC) and the Association of Southeast Asian Nations (ASEAN). Participation in these organizations helps harmonize regulations, simplify enrollment sequences, and create a single pecuniary space for trades. For entrepreneurs, this means easier access to regional markets, the opportunity to participate in joint projects, and cooperation with partners from neighboring countries.

It is also important to note that Indonesia has concluded agreements on mutual recognition of qualifications and licenses, which facilitates the process of hiring and interacting with local specialists. This is especially important for organizations operating in high-tech and specialized industries that require qualified personnel. Such undertakings aid in improving the quality of services and products, and also speed up the sequence of adaptation of foreign specialists to local conditions.

For entrepreneurs planning to open a company in Bali, knowledge of these agreements is an important aspect of strategic planning and successful trade schemes in the international context. Active use of the advantages provided by international agreements allows not only to effectively develop in the local market, but also to confidently enter the global level.

Liquidation of a company in Bali

Closing a business in Bali is the sequence of formally ending its existence, which is overseen by Indonesian laws, including the Companies Act and the Bankruptcy and Moratorium of Payments Act.

The process has several stages, each of which requires careful adherence to established procedures and interaction with various government agencies.

Process initiation
The initial phase in liquidating a company in Indonesia is to make a decision to close the business. It must be authorised at a general meeting of the founders or financiers of the organization. The minutes of the meeting confirming the decision to liquidate are lawfully drawn up and certified by a notary.
Notification of government agencies
Once the decision has been made, it is necessary to notify the Indonesian Ministry of Justice and Human Rights of the intention to reorganize the firm. Notifications must also be sent to the levy authority, the Department of Commerce, and other regulatory bodies, contingent on the form of scheme of the organization.
Designation of liquidator
A liquidator is designated to handle the process. This may be one of the founders of the firm, an external legal body, or a specialized firm partook in reorganization. The liquidator assumes responsibility for managing the company's assets, settling accounts with creditors, and settling all fiscal duties.
Inventory of assets and dues
The next step is to prepare a detailed report of the company's holdings and dues. The liquidator analyzes the pecuniary documentation, evaluates the property, and determines what obligations must be fulfilled before closing. This includes settlements with employees, repayment of loans, payment of levies, and fulfillment of contractual obligations to associates and users.

Settlement of debt obligations

The company is obliged to settle all its debts and obligations. The liquidator contacts creditors to agree on the procedure and terms for repaying debts. It is also important to settle accounts with the company's employees, fulfilling all obligations for wages and compensation.

Liquidation balance

After all the prerequisites have been met, the liquidator draws up a liquidation balance sheet. This document confirms that the firm no longer has any financial obligations. The balance sheet must be consented at a general meeting of founders and financiers, and then conveyed to the Ministry of Justice and other regulatory bodies.

Exclusion from the state register

The organization then files an application for closure with the state registry. This is the final stage of the sequence, after which the firm is officially excluded from the list of active licit enterprises.

Accounting for tax liabilities

An important part of closing a company in Bali is settling tax liabilities. The firm must file all required excise returns, remunerate levies, and get confirmation from the Tax Authority that it has no outstanding debts.

Deadlines and challenges

The sequence of liquidating a company in Indonesia can range up to a year, contingent on the complexity of the company's fiscal structure, the number of assets and liabilities, and interactions with government agencies.

Legal support when establishing a company in Bali

Starting a company in Bali requires compliance with many licit sequences and directives. Legal support asserts abidance with all prerequisites and reduces perils for entrepreneurs.

Objectives of legal support

Legal services are essential at every stage of setting up a business in Bali. Specialists assert abidance with local statutes and directives, minimize perils associated with possible fines or refusals, optimize the sequence of getting warrants, and defend the interests of trade owners in relations with local partners, tenants and government agencies.

Lawyers help determine which form of enterprise is best suited to a particular trade model. This is prime to assert abidance with licit prerequisites and to maximize available merits.

Legal support may include preparing the prime indentures, comprising the charter, memorandum of association, and enrollment for name approval. They also coordinate the sequence of conveying enrollments to the prime government agencies.

If a venture in the polity requires renting or purchasing commercial real estate, specialists ensure that indentures for the property are checked, contracts are concluded, and all legal sequences are abided.

Why do you need legal support at the stage of a trade scheme?

Subsequent to forming of the firm, licit services remain prime because companies face various issues related to staffing workers, abidance with work statutes, and concluding undertakings with suppliers and customers.

The specialists help to draft employment contracts, provide advice on immigration legislation to get work visas and temporary occupancy permits for foreign workers. In addition, they represent the interests of entrepreneurs in case of disputes or inspections by regulatory authorities.

Benefits of Working with Law Firms in Bali

Companies functioning on the island have a deep comprehension of local legislation and administrative procedures. They supply prompt and high-quality support for all processes, which allows entrepreneurs to focus on developing their business.

With professional support, entrepreneurs can minimize perils and speed up trade launches, while receiving assurances that their organization will operate in strict abidance with Indonesian statutes.

Common mistakes when registering a company in Bali

Financiers often encounter a number of errors that can lead to delays, additional costs, or even the impossibility of carrying out trade schemes. Let's consider the main ones.

  • Wrong choice of form of organization

Transnational financiers are mandated to enroll a firm in the form of PT PMA. Attempting to circumvent this prerequisite, for example by registering a local entity with nominee local shareholders, may result in invalidation of the firm.

  • Wrong choice of schemes

The Indonesian Classification of Economic Activities (KBLI) determines which schemes are activated to expat financing and to what extent. Some schemes are completely closed to foreigners, while others have ownership restrictions. Incorrect selection or inappropriate KBLI codes may result in rejection of registration or the need to make changes to the trade structure.

  • Absence of local director

The overseer of an expat-invested organization by statute must be a resident of Indonesia. If the overseer is an expat, he or she must get a work permit and a levy number. Failure to have a local director or to abide with these requirements may result in fines or cancellation of registration.

Conclusion

Establishing a company in Bali supplies admittance to among the promising trading fields in Southeast Asia. The growing flow of tourists and emigrants asserts a stable demand for aids and items, and supplies broad prospects for entrepreneurs. Low levy rates and government support stimulate trade development and transnational financing.

If you would like to comprehend the prospects of trading in Bali or would like a personal consultation, we are always ready to offer solutions to help you achieve your goals.

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