How to Launch a Business in Bali: Legal Services by The Bali Lawyer re

Launching a business in Bali can be one of the most exciting and rewarding decisions you make. With its thriving tourism industry, growing international market, and attractive lifestyle, Bali offers a welcoming environment for entrepreneurs and investors. However, setting up a business in Indonesia involves several legal and administrative procedures that must be carefully followed to ensure compliance with local laws and regulations.

At The Bali Lawyer, we are a trusted legal service based in Bali, helping foreign and local entrepreneurs navigate the legal processes of launching a business in Indonesia. Our legal team provides step-by-step support from business registration to licensing, tax compliance, and immigration matters. This page outlines everything you need to know about starting a business in Bali.

Why Choose Bali for Business

Bali is more than just a popular travel destination; it’s an emerging hotspot for small to medium enterprises, digital nomads, and international investors. Here’s why many entrepreneurs choose Bali to establish their ventures:

  • Strategic location in Southeast Asia

  • Growing expat and tourist market

  • Increasing demand for services, products, and hospitality businesses

  • Affordable operational costs

  • High-quality lifestyle with modern infrastructure and global connectivity

Whether you’re opening a villa rental business, a café, a digital agency, or an import-export company, Bali offers tremendous opportunities. However, to operate legally and efficiently, it’s crucial to set up your business correctly from the beginning.

Legal Structures for Foreign-Owned Businesses

Before launching your business in Bali, you must choose the right legal structure. The most common options for foreigners are:

1. PT PMA (Foreign-Owned Company)

A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the only legal structure that allows full or partial foreign ownership in Indonesia. It is suitable for a wide range of business activities such as tourism, hospitality, consulting, digital services, and more.

Advantages:

  • Legal business entity

  • Eligible to sponsor work and stay permits (KITAS)

  • Can open a corporate bank account

  • Recognized by Indonesian law for contracts and operations

2. Local PT Company (Nominee Structure)

A local PT company is an Indonesian-owned business. In some cases, foreigners enter into agreements with Indonesian partners to hold shares on their behalf. This is often referred to as a nominee setup, but it carries legal risks and should only be done with legal consultation.

3. Representative Office (KPPA)

For companies that want to establish a presence in Bali without conducting direct business operations, a KPPA is an option. It allows market research and brand representation but not direct revenue generation.

Step-by-Step Guide to Launching Your Business in Bali

At The Bali Lawyer, we simplify the process of launching a business in Bali. Here’s an overview of the legal process:

Step 1: Business Consultation and Planning

We start by understanding your goals, business model, and plans. This helps us advise on the best legal structure and licensing requirements specific to your industry.

Step 2: Name Reservation and Deed of Establishment

We assist you in selecting an available business name and drafting the Deed of Establishment through a licensed notary. This document includes details of shareholders, company structure, and capital investment.

Step 3: Approval from the Ministry of Law and Human Rights

Once the notarial deed is complete, we submit it for approval to the Ministry of Law and Human Rights, making your business a legal entity under Indonesian law.

Step 4: Business Domicile and Tax Registration

To proceed, a business address in Bali is required. We help arrange a legal domicile letter and register your company with the local tax office to obtain a Taxpayer Identification Number (NPWP).

Step 5: Business Identification Number (NIB)

The NIB is your company’s primary business license issued through the Online Single Submission (OSS) system. It enables import/export, employment, and other regulated activities.

Step 6: Sector-Specific Licenses and Permits

Depending on your industry, additional licenses may be needed—such as a tourism license (TDUP), food and beverage license, or environmental permits. We handle all applications and submissions on your behalf.

Step 7: Employment and Work Permits

If you plan to work in your business, we help you obtain a work permit (IMTA) and residence permit (KITAS). Your PT PMA is eligible to sponsor these permits for directors and foreign employees.

Step 8: Ongoing Legal Compliance

Once your business is operational, we provide ongoing legal support for tax reporting, employee contracts, visa renewals, and business compliance to keep your company in good standing.

Types of Businesses You Can Launch in Bali

Foreign entrepreneurs can establish a wide range of business types in Bali. Some popular and legally accessible sectors include:

  • Tourism and hospitality (villas, hotels, tour operators)

  • Food and beverage (restaurants, cafés, catering)

  • Creative and digital industries (marketing agencies, IT services)

  • Health and wellness (yoga studios, spas, retreats)

  • Import and export (fashion, handicrafts, food products)

  • Retail and e-commerce (boutiques, online stores)

  • Consulting and education (language schools, training centers)

We ensure your business falls within the permitted investment sectors and assist in structuring your operations accordingly.

Compliance and Legal Risk Management

Running a business in Indonesia comes with specific regulatory requirements. Failure to comply may result in penalties, license suspension, or visa cancellation. The Bali Lawyer provides full legal assistance to help you stay compliant with:

  • Corporate tax and financial reports

  • Manpower regulations and employee documentation

  • Immigration laws and foreigner reporting

  • Annual business license renewals

  • Regulatory changes and updates

Our team monitors all compliance deadlines and manages legal filings, so you can focus on growing your business.

Immigration and Visa Services for Entrepreneurs

In addition to business licensing, The Bali Lawyer provides full visa support for investors, directors, and employees. Whether you need an Investor KITAS, Work KITAS, or Business Visa, we manage the process from start to finish.

As a business owner, obtaining the correct visa is essential for legal residence and work authorization in Indonesia. We also assist with visa renewals, family KITAS for dependents, and overstay resolutions if necessary.

Why Choose The Bali Lawyer

Starting a business in a foreign country can be overwhelming. At The Bali Lawyer, we simplify the legal process, protect your interests, and help you make informed decisions at every stage. Here’s what sets us apart:

  • Experienced legal team based in Bali

  • Clear guidance tailored to your business type

  • Transparent, step-by-step process

  • Compliance-focused legal services

  • Fast turnaround and communication

Whether you’re launching a startup or expanding your operations, we are here to support your journey in Bali from idea to reality.

Ready to Launch Your Business in Bali?

If you’re ready to turn your business vision into a legal, operational enterprise in Bali, contact The Bali Lawyer today. We provide full legal support to set up your company, obtain necessary licenses, and stay compliant with Indonesian regulations. Start with a consultation and let us help you build your dream business on the Island of the Gods.