How to Open a Company in Bali Legally as a Foreigner: Complete 2025 Guide

Opening a company in Bali as a foreigner has become a common goal for many entrepreneurs, investors, and digital nomads seeking to tap into Indonesia’s vibrant economy and Bali’s tourism-driven market. Whether you want to launch a business in hospitality, wellness, tech, or consulting, understanding the legal process and regulatory environment is critical to ensuring a successful and compliant operation.

This comprehensive 2025 guide will walk you through everything you need to know to legally establish your company in Bali as a foreigner, including the legal entities allowed, the required documents, licensing procedures, and practical tips to ensure full compliance with Indonesian laws.

We are a legal service based in Bali called The Bali Lawyer, and we assist clients from all over the world with company formation and compliance services.

Why Bali is an Attractive Location for Foreign Business Owners

Bali is more than a tourist paradise. Over the past decade, it has evolved into a dynamic hub for entrepreneurs, start-ups, and global companies seeking to establish a presence in Southeast Asia. The strategic location, skilled workforce, and international community make Bali an ideal place for foreign direct investment.

Key sectors attracting foreign investment in Bali include:

Hospitality (hotels, villas, resorts)
Food & beverage (cafes, restaurants, beach clubs)
E-commerce & digital services
Wellness & retreats
Creative industries (fashion, art, design)
Consulting and professional services

Can Foreigners Legally Open a Business in Bali?

Yes, foreigners can legally open and operate a business in Bali through a foreign-owned company, known in Indonesia as a PT PMA (Perseroan Terbatas Penanaman Modal Asing). This is the legal entity specifically designed for foreign investors under Indonesian law.

A PT PMA allows partial or full foreign ownership depending on the business sector. The company must be established in accordance with regulations governed by the Indonesian Investment Coordinating Board (BKPM) and must comply with operational and licensing rules under various government departments.

Step-by-Step Process to Open a Company in Bali as a Foreigner

1. Determine Business Classification and Ownership Rules

Indonesia has a Positive Investment List that outlines which business sectors are open to foreign ownership, restricted, or closed. Before proceeding, you need to determine:

If your business sector is open to foreign investment
The maximum percentage of ownership allowed

For example:

Restaurants and consulting businesses can be 100% foreign-owned
Certain tourism businesses may require local partnership

2. Reserve Your Company Name

Your business name must be unique and comply with Indonesia’s naming regulations. It typically takes 1–2 days for name approval by the Ministry of Law and Human Rights.

3. Establish the PT PMA Company

To register a PT PMA, you will need:

At least two shareholders (individuals or entities)
A board of directors and commissioners
A registered address in Indonesia
An official business purpose and objectives (in line with KBLI codes)

Minimum capital investment requirements vary depending on the business field, but for most PT PMA setups, a minimum of IDR 10 billion (approx. USD 650,000) in total investment is required. This includes paid-up capital and planned operational capital.

4. Obtain Company Registration (NIB – Business Identification Number)

After legal establishment, you must register your company through the OSS (Online Single Submission) system to receive your NIB. The NIB functions as your company’s official business license and includes:

Company registration certificate
Import-export license (if applicable)
Customs access rights

5. Apply for Sector-Specific Licenses

Depending on your business type, additional licenses may be required:

Tourism License (TDUP) for hotels, spas, and travel agencies
Restaurant operational permits
Construction licenses
Environmental approvals

The Bali Lawyer ensures all licenses are secured based on your exact business category.

6. Register for Tax and Open a Bank Account

Your company must obtain a NPWP (Tax Identification Number) and register for applicable tax obligations including VAT, income tax, and monthly reporting.

Next, open a corporate bank account in an Indonesian bank. This is required for capital injection and business transactions.

7. Hire Staff and Comply with Employment Law

When hiring Indonesian staff, ensure they are under proper employment agreements and registered with BPJS (Indonesia’s social security system). For foreign employees, you’ll need:

Work permit (RPTKA & IMTA)
Limited stay permit (KITAS)

The Bali Lawyer can assist with all necessary permits and legal HR compliance.

Timeline for Setting Up a Company in Bali

On average, it takes between 4 to 8 weeks to fully establish a PT PMA in Bali, depending on the business sector and licensing requirements.

Approximate timeline breakdown:

Name reservation: 1–2 business days
Legal establishment: 5–7 business days
NIB & licenses: 10–15 business days
Tax registration & bank account: 7–10 business days
Sector-specific permits: 2–4 weeks

Estimated Cost to Open a Company in Bali

Costs can vary depending on legal services, business sector, and licensing needs. However, you should prepare a minimum budget of:

Legal fees for PT PMA setup: starting from IDR 30–50 million
Notary and translation fees
Government licensing fees
Paid-up capital requirements
Office rental and staffing

The Bali Lawyer provides customized packages with transparent pricing to match your business goals.

Common Mistakes to Avoid

Using a nominee company: While some foreigners try to use Indonesian nominees to bypass ownership restrictions, this practice is illegal and risky.
Skipping proper licensing: Operating without correct permits can result in heavy fines, closure, or even deportation.
Unclear business classification: Misalignment with KBLI codes can cause delays in licensing or future expansion.
Ignoring tax obligations: Late or improper tax filing leads to penalties and legal issues.

Why Work with The Bali Lawyer?

Navigating Indonesia’s legal and bureaucratic landscape can be challenging without the right local support. The Bali Lawyer is a trusted legal partner offering:

Full legal setup of PT PMA companies
Regulatory and tax compliance
Licensing and permit acquisition
Local address and virtual office solutions
Legal HR and work visa assistance

We simplify every step of your business journey in Bali, saving time, avoiding legal risks, and ensuring you are 100% compliant with the law.

FAQs

Q: Can I own 100% of my business as a foreigner in Bali?
A: It depends on the business sector. Many fields such as consulting or IT allow 100% foreign ownership, while others may require a local partner.

Q: How much capital do I need to open a business in Bali?
A: The standard investment requirement is IDR 10 billion, but this includes both operational capital and paid-up capital. You can inject the paid-up capital gradually.

Q: Can I live in Bali after opening a business?
A: Yes, you can apply for a KITAS (limited stay permit) based on your status as a company director or shareholder.

Q: What if I want to buy property under my company?
A: A PT PMA can legally hold property for business use. We help structure property ownership to ensure compliance.