Company Setup in Bali, Indonesia
Expert Legal Support for Foreign & Local Business Registration in Bali. Over 20 Years of Experience Helping Entrepreneurs Launch Successfully in Indonesia.
Comprehensive Legal Services for Your Bali Business Setup
Company Formation & Registration
We guide you through every step of registering your business in Indonesia, from choosing the right legal entity (PT PMA, PT PMDN, CV, or Representative Office) to securing your company deed, obtaining Tax ID (NPWP), and registering with the Ministry of Law and Human Rights via the OSS (Online Single Submission) system.
Document Drafting & Legal Review
Our lawyers draft and review all essential corporate documents including Articles of Association (Anggaran Dasar), Deed of Incorporation (Akta Pendirian), shareholder agreements, investment agreements, and partnership contracts, all fully compliant with Indonesian corporate law.
Business Licensing & Permits
Indonesia requires specific licenses depending on your business activity. We handle all permit applications through the OSS-RBA system, including NIB (Business Identification Number), location permits, environmental permits, building permits (IMB), and sector-specific operational licenses for tourism, F&B, retail, consulting, and more.
Foreign Investment Advisory (PT PMA)
Planning to invest in Bali as a foreigner? We specialize in PT PMA (Penanaman Modal Asing) setup, the legal structure that allows foreign nationals to own and operate a business in Indonesia. We advise on minimum capital requirements (IDR 10 billion authorized capital), ownership structures, the Positive Investment List (DNI), and BKPM approval procedures.
Tax Registration & Compliance
We register your company for all required tax obligations including NPWP (Tax ID), VAT registration (PKP), and monthly/annual tax reporting. Our team ensures your business stays compliant with Indonesian tax regulations, helping you navigate corporate income tax, withholding tax, and value-added tax requirements from day one.
Choosing the Right Business Entity Is the Most Important Decision You Will Make in Indonesia
Types of Companies You Can Register in Bali & Indonesia
PT PMA, Foreign-Owned Limited Liability Company
Best for: Foreign entrepreneurs and investors who want full ownership of a business in Indonesia.
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the most common legal structure for foreigners doing business in Bali. It allows up to 100% foreign ownership in most sectors.
Key requirements:
- Minimum authorized capital: IDR 10 billion (approx. USD 625,000)
- Minimum paid-up capital: IDR 2.5 billion
- At least 2 shareholders (individuals or companies)
- At least 1 director and 1 commissioner
- Registered office address in Indonesia
Timeline: 4-8 weeks from document submission to full operational status.
PT PMDN, Local Limited Liability Company
Best for: Indonesian nationals or businesses with 100% domestic ownership.
A PT PMDN is a domestically-owned company with simpler registration requirements and lower capital thresholds.
Key requirements:
- Minimum authorized capital: IDR 50 million
- At least 2 Indonesian shareholders
- At least 1 director and 1 commissioner
Timeline: 2-4 weeks.
CV, Commanditaire Vennootschap (Limited Partnership)
Best for: Small-to-medium Indonesian-owned businesses and partnerships.
A CV is a limited partnership with active partners (who manage) and silent partners (who provide capital). Only available to Indonesian nationals.
Key features:
- No minimum capital requirement
- Simpler tax structure than a PT
- Cannot receive foreign investment
- Not a separate legal entity
Timeline: 1-2 weeks.
Representative Office (KPPA)
Best for: Foreign companies wanting a presence in Indonesia for market research or promotion, without revenue-generating activities.
A KPPA allows a foreign company to have a legal presence in Indonesia but cannot generate revenue or sign commercial contracts.
- Must be sponsored by a foreign parent company
- Permit valid for 1-3 years (renewable)
- Limited to marketing, liaison, and coordination
Branch Office (Kantor Cabang)
Best for: Foreign companies in regulated sectors (oil & gas, banking, construction) that need to generate revenue in Indonesia.
A Branch Office operates as an extension of the foreign parent company and can conduct business operations.
- Can generate revenue (unlike a representative office)
- Only available in specific regulated sectors
- Parent company bears full liability
- Requires sector-specific government approval
Starting a business in Indonesia requires careful legal planning. Whether you are a foreign investor setting up a PT PMA or a local entrepreneur registering a CV, our experienced lawyers in Bali will guide you through every step, from entity selection and registration to licensing and ongoing compliance. Book a free consultation today.
Frequently Asked Questions About Company Setup in Bali
Can a foreigner own a company in Bali?
Yes. Foreign nationals can establish a PT PMA (Foreign-Owned Limited Liability Company) in Indonesia, which allows up to 100% foreign ownership in most business sectors. The Positive Investment List (DNI) defines which sectors are open to foreign investment. Our lawyers will advise you on the best structure for your specific business activity.
How much does it cost to set up a company in Bali?
The cost varies depending on the type of entity. A PT PMA typically requires IDR 10 billion in authorized capital (approximately USD 625,000), though actual paid-up capital requirements are lower. Professional service fees typically range from USD 2,000 to USD 8,000 depending on complexity. Contact us for a detailed quote.
How long does it take to register a company in Indonesia?
A PT PMA registration typically takes 4 to 8 weeks. A local PT (PMDN) can be completed in 2 to 4 weeks. A CV (limited partnership) takes approximately 1 to 2 weeks. Timelines depend on document readiness and government processing times.
What is the difference between PT PMA and PT PMDN?
A PT PMA allows foreign shareholders and is regulated under the Foreign Investment Law, with higher minimum capital requirements. A PT PMDN is domestically-owned with all Indonesian shareholders and lower capital thresholds. The choice depends on your nationality, business goals, and sector.
What licenses do I need to operate a business in Bali?
All businesses need a NIB (Business Identification Number) through the OSS system. Depending on your activity, you may also need sector-specific licenses such as a tourism license, restaurant permit, trading license (SIUP), or construction permit. Our team handles all license applications.
Do I need a local partner to start a business in Bali?
Not necessarily. With a PT PMA, foreigners can own up to 100% of the company in most sectors. Some restricted sectors may require a local Indonesian partner. Our lawyers will review the Positive Investment List and advise you on the best ownership structure.
Can I open a company in Bali remotely?
Yes, much of the registration process can be handled remotely with our legal team. You will need notarized documents and powers of attorney from an Indonesian embassy or consulate. We manage the entire process on your behalf via WhatsApp or video call.
Get a Personal Consultation
Bali Office
Ngurah Gentuh, Jl. Kerobokan Kelod Gg. Lotus, Canggu, Kec. Kuta Utara, Kabupaten Badung, Bali 80361
Jakarta Office
ASG Tower, 15th Floor, Jakarta, Indonesia
Contact
+62 877-9626-0478(Whatsapp)
Open Hours
Monday-Saturday 8 am - 6pm
Sunday 11am - 4pm
What changed, and why 2024 advice is now wrong
Between October 2025 and June 2026 the rules changed four times. If a quote you are holding mentions Rp 10 billion paid-up capital, a low-risk registration issued in days, or the 0.5% small business tax, it describes a system that no longer exists.
| What changed | When | Now |
|---|---|---|
| Paid-up capital | Oct 2025 | Rp 2.5 billion, down from Rp 10 billion |
| Business licensing regulation | Jun 2025 | PP 28/2025 replaced PP 5/2021 |
| Bali sector restrictions | May 2026 | 64 classification codes blocked to foreign companies |
| Business classification system | Jun 2026 | Rebuilt, old codes converted automatically |
| 0.5% turnover tax | Apr 2026 | Removed for ordinary companies |
The check to do before anything else
Confirm your intended business activity is still available to a foreign company at your intended Bali location, under the current classification system. Blocked categories now include cafés, budget hotels, star hotels under 6,000 m², owned or leased real estate, management consulting and vehicle rental. This single check has saved clients from committing capital to something that could not be licensed.
Structure basics
- Two shareholders minimum, and both may be foreign. No Indonesian shareholder is required in sectors open to full foreign ownership.
- One director and one commissioner minimum. Both may be foreign, though in practice you need someone resident with a tax number for banking and filings.
- Business actors now register through OSS, which is integrated with SIMBG for building permits. Individuals building privately still use SIMBG directly.
The villa trap
Homestay and villa accommodation classifications are reserved for Indonesian citizens and small local businesses. A PT PMA cannot hold the short-stay accommodation licence. It can own and lease property, but ownership and licensed operation must be separated. Since May 2026, owned and leased real estate is itself blocked in Bali.
Anyone telling you a PT PMA can simply obtain a villa rental licence is describing something that does not exist.
Nominee shareholding is void, not risky
Holding shares through an Indonesian nominee is prohibited outright. Article 33 of the investment law declares such agreements void by operation of law, meaning void from the outset with no court action needed. You have no enforceable claim to the shares or to what they own.
What you must keep doing afterwards
This is where foreign-owned companies in Bali most often come unstuck, and it is now grounds for revocation.
- Quarterly investment reports, deadlines on the 15th of April, July, October and January
- Monthly tax filings and an annual return by 30 April
- Bookkeeping in Indonesian, in rupiah, kept in Indonesia for ten years
- Social security registration once you have staff
Hundreds of Bali companies had their registration revoked during 2025 for failing investment commitments.
Full detail: starting a business in Bali in 2026 and what it costs.
General information as at August 2026, not legal advice. A replacement regulation on investment business fields is in the government legislative programme. Verify current requirements before acting.