The Complete Guide to the Cost of Starting a Business in Bali
Bali is a prime destination for entrepreneurs and investors looking to start a business. With its booming tourism industry, affordable living costs, and favorable investment climate, many see Bali as the perfect place to establish a company. However, understanding the cost of starting a business in Bali is crucial before making any commitments.
Legal Structure and Business Entity Options
The cost of setting up a business in Bali varies depending on the type of business entity you choose. The most common business structures include:
1. Foreign-Owned Company (PT PMA)
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company that allows foreign ownership. The setup costs include:
Company registration: $2,500 – $5,000
Minimum capital investment: $50,000 (can be injected over time)
Notary and legal fees: $500 – $1,500
Company domicile (virtual office or physical space): $500 – $2,000 per year
2. Local-Owned Company (PT)
A PT (Perseroan Terbatas) is a locally owned company that can only be fully owned by Indonesian citizens. Foreigners can operate under this structure by using a nominee agreement, but this requires legal consultation.
Company registration: $1,000 – $3,000
Legal service fees: $500 – $1,500
Office space: $500 – $2,000 per year
3. Representative Office (KPPA)
A KPPA is a legal entity for market research and promotional activities without engaging in direct business transactions. The estimated costs include:
Registration and permits: $2,000 – $4,000
Office rental costs: $3,000 – $10,000 per year
Licenses and Permits
Every business in Bali requires various licenses and permits. The cost depends on the nature of the business and its location. The primary permits include:
Business Identification Number (NIB): $100 – $500
Operational permits (depends on industry): $500 – $3,000
Tourism licenses (for hospitality businesses): $1,000 – $5,000
Environmental and health permits: $500 – $2,000
Import/export licenses (if applicable): $1,000 – $3,000
Office and Commercial Space Costs
Finding the right office or commercial space in Bali depends on your business needs. Some options include:
Co-working spaces: $100 – $500 per month
Small office rental: $300 – $1,500 per month
Retail space: $500 – $5,000 per month
Restaurant or café space: $1,000 – $10,000 per month
Employment and Payroll Costs
Hiring employees in Bali comes with various costs, including salaries, social security contributions, and other benefits.
Minimum wage in Bali: Approximately $200 – $300 per month
Skilled professionals (marketing, IT, management): $500 – $2,000 per month
Work visa (KITAS) for foreign employees: $1,000 – $2,500 per year
Social security contributions (BPJS Ketenagakerjaan & BPJS Kesehatan): 5-10% of salary
Taxation and Financial Considerations
Understanding the tax structure in Bali is essential for long-term business success. The key taxes include:
Corporate income tax: 22% (for PT PMA and PT businesses)
Personal income tax: 5-35% (depending on income bracket)
Value Added Tax (VAT): 11%
Tourism tax (for hospitality businesses): 10%
Annual financial report and auditing fees: $1,000 – $5,000
Visa and Work Permits for Foreign Entrepreneurs
Foreign entrepreneurs planning to manage their business in Bali must obtain the appropriate visa. Options include:
Investor KITAS: $1,500 – $2,500 per year
Business visa (social visa for initial visits): $250 – $500
Multiple-entry business visa: $500 – $1,000 per year
Marketing and Business Promotion Costs
Building brand awareness is crucial for business success in Bali. The estimated marketing costs include:
Website development: $500 – $5,000
Social media marketing: $300 – $2,000 per month
SEO and digital advertising: $500 – $5,000 per month
Traditional advertising (banners, flyers, billboards): $200 – $2,000
Unexpected Costs and Contingency Planning
Starting a business in Bali comes with potential hidden expenses. It is recommended to have a contingency budget of at least $5,000 – $10,000 to cover unforeseen costs such as:
Legal disputes or compliance issues
Additional permit requirements
Unforeseen operational expenses
Starting a business in Bali offers significant opportunities but requires careful financial planning. Costs vary depending on business type, location, and operational requirements. Working with a professional legal service such as The Bali Lawyer ensures compliance with local regulations and smooth business setup.
If you need expert guidance on setting up a business in Bali, contact The Bali Lawyer today for professional legal support.
The 2026 numbers, and what each one actually is
Three figures get quoted interchangeably and they are completely different things. Getting them confused is why quotes vary so wildly.
| Figure | Amount | What it really is |
|---|---|---|
| Paid-up capital | Rp 2,500,000,000 | Your money. Deposited into the company account. Not a fee. Reduced from Rp 10bn in October 2025 |
| Investment value | Over Rp 10,000,000,000 | A commitment, not a deposit. Excludes land and buildings. Assessed per business code per location |
| Setup fees | Roughly Rp 30-50 million | What you actually spend: notary, government charges, professional fees |
The paid-up capital is not a cost. It stays in your company and can be spent on fixed assets, construction or operating costs consistent with your investment plan. Since 2025 it must remain in the company account for twelve months, but it does not have to sit idle. Anyone presenting Rp 2.5 billion as a fee is either confused or not being straight with you.
What actually leaves your pocket
| Item | Type |
|---|---|
| Notarial deed of establishment | Capped by law. Notary honorarium scale |
| Ministry of Law approval | Government fee |
| NIB and business licensing via OSS | Government, generally no charge for the NIB itself |
| Tax registration (NPWP) | Free |
| Domicile and virtual office | Commercial, annual |
| Professional and agent fees | Unregulated. Widest variation |
| Accounting and quarterly reporting | Ongoing, monthly or quarterly |
Published packages run roughly USD 1,700 to USD 8,000 depending on sector and licensing complexity. Treat those cautiously, they come from firms selling the service. Ask for government charges to be itemised separately from professional fees.
The Bali restriction that changes the whole calculation
In May 2026, at the Bali provincial government's request, 64 business classification codes were blocked to foreign investment companies in Bali and hardcoded into the licensing system. It applies to Bali only and has no expiry date.
Blocked categories include cafés and drinking houses, budget hotels, star hotels under 6,000 m², owned or leased real estate, management consulting, vehicle and motorbike rental, and several retail categories.
Still open but now requiring central ministry verification and a physical site inspection: restaurants and bars, medical spa, property brokerage, and hotels above 6,000 m². That process takes months, not the two to four weeks that used to be standard.
This is the cheapest mistake to avoid. Confirming your intended activity is still available at your intended Bali location costs nothing and has saved clients from committing capital to a structure that could not be licensed.
Ongoing costs people forget
- Quarterly investment reports. Deadlines moved to the 15th of April, July, October and January. Sanctions now include administrative fines, escalating to revocation. Hundreds of Bali companies had registrations revoked in 2025.
- Monthly tax filings. Instalments, employee withholding, withholding on services and rent.
- Bookkeeping in Indonesian, in rupiah, retained in Indonesia for ten years. Mandatory regardless of size.
- Social security once you have staff. Employer contributions run roughly 6.2% to 7.7% of wages.
- Work permits. USD 100 per foreign position per month, paid in advance for the approved period.
The tax change that caught companies out
From 22 April 2026, ordinary companies including PT PMA lost access to the 0.5% final tax on turnover. It now applies only to individuals, single-shareholder companies and cooperatives.
A company now pays 22% corporate tax on net profit, with an effective 11% on the portion attributable to the first Rp 4.8 billion of turnover. If your budget assumed 0.5%, it needs redoing.
Common questions
How much does it cost to start a business in Bali in 2026?
Professional and government fees for a straightforward incorporation typically run around Rp 30 to 50 million. Separately you must deposit Rp 2.5 billion in paid-up capital, which is your own money held in the company, not a fee.
Is the Rp 2.5 billion a fee I lose?
No. It is share capital deposited into your company account. It must stay there twelve months but can be spent on assets, construction or operations consistent with your investment plan.
What is the difference between paid-up capital and investment value?
Paid-up capital is Rp 2.5 billion actually deposited. Investment value is a commitment exceeding Rp 10 billion per business classification code per project location, excluding land and buildings. They are separate requirements.
Can I still open a café or small hotel in Bali as a foreigner?
Not through a foreign investment company. Since May 2026, 64 classification codes are blocked to PT PMA in Bali, including cafés, budget hotels and star hotels under 6,000 square metres.
How long does company setup take now?
Two to four weeks was standard before 2026. In Bali the remaining open sectors require central ministry verification and physical inspection, so plan in months.
For the full picture see starting a business in Bali in 2026 and PT PMA setup costs.
General information as at August 2026, not legal or tax advice. This area changed four times between October 2025 and June 2026 and continues to move. Verify current requirements before committing funds.