Set Up a PT PMA Company in Bali as a Foreigner: A Step-by-Step Legal Guide

Starting a business in Bali is a dream for many international entrepreneurs. With its thriving tourism, rich culture, and growing economy, the island is a top choice for investors. However, setting up a business in Bali as a foreigner requires understanding the local legal landscape. One of the most effective and legal ways to establish a foreign-owned company in Indonesia is by setting up a PT PMA (Perseroan Terbatas Penanaman Modal Asing) — a Foreign Investment Limited Liability Company.

At The Bali Lawyer, we specialize in assisting foreigners to set up PT PMA companies legally and efficiently in Bali. This comprehensive guide explains every essential step, requirement, and benefit to ensure your business starts on solid legal ground.

What is a PT PMA?

A PT PMA (Foreign Investment Company) is a legal entity established in Indonesia for foreign investors to run business operations and hold shares. It allows foreign individuals or entities to have partial or full ownership of a company operating in Indonesia, including Bali.

Unlike local companies (PT Lokal), PT PMA entities are subject to different regulations but provide the legal right for foreigners to operate a business under Indonesian law.

Why Set Up a PT PMA in Bali?

There are several compelling reasons why a PT PMA is the preferred legal structure for foreign entrepreneurs in Bali:

Full or partial foreign ownership allowed
Legal permission to earn revenue and profit in Indonesia
Eligible to sponsor foreign work permits (KITAS)
Ability to lease or own property (under specific legal frameworks)
Reputation and credibility with local and international partners
Access to Indonesia’s rapidly growing economy and domestic market

Industries Open to PT PMA

Indonesia maintains a Positive Investment List, which outlines the business sectors open to full or partial foreign ownership. Many industries in Bali are open to PT PMA structures, such as:

Hospitality (hotels, villas, resorts)
Restaurants and cafes
Tourism services and travel agencies
Construction and architecture
Creative services and digital marketing
Trading and retail (with conditions)
Real estate development and management

Before starting the process, it is crucial to ensure that your intended business activity is legally open to foreign ownership.

Step-by-Step Guide to Setting Up a PT PMA in Bali

1. Define Business Activities and Check Ownership Limits

First, determine your intended business activities and confirm their eligibility on the Positive Investment List. Some sectors allow 100% foreign ownership, while others require a local partner.

2. Choose a Business Location

Your company must have a legitimate business address in Bali. Residential addresses are not permitted for company registration. You’ll need an office or virtual office with the correct zoning classification.

3. Reserve Your Company Name

Choose a unique company name that adheres to the Ministry of Law and Human Rights regulations. The name must consist of at least three words and cannot resemble existing company names.

4. Prepare Legal Documentation

You must prepare the following documents:

Copy of passports of shareholders and directors
Company structure and ownership details
Articles of Association (Akta Pendirian)
Notary deed of establishment

All documents must be in Indonesian and legalized by a notary.

5. Obtain Deed of Establishment and Legal Entity Status

After the notarial deed is completed, the company must be registered with:

The Ministry of Law and Human Rights (to obtain legal entity status)
The Online Single Submission (OSS) system for further business licenses

6. Obtain a Tax ID (NPWP) and Register with the Tax Office

Your company must have a Tax Identification Number (NPWP) and register for tax obligations. This step is necessary to open a corporate bank account and for invoicing purposes.

7. Obtain Business Identification Number (NIB)

The NIB is issued through the OSS system and serves as the company’s business license, import license, and registration number for BPJS (health and social security).

8. Apply for Operational Licenses

Depending on your industry, additional licenses may be required, such as:

Tourism license
Restaurant or F&B permit
Construction permit (SBU/SKA)
Real estate management license

Each license must comply with local government regulations and is necessary before commencing operations.

9. Open a Corporate Bank Account

Once your company is officially registered, you can open a bank account in the company’s name with any Indonesian bank. This is essential for capital investment and transactions.

10. Inject Capital

The minimum capital requirement for a PT PMA is IDR 10 billion (~USD 650,000), but not all of it needs to be immediately deposited. A portion must be realized and reported to meet legal requirements.

11. Apply for Work and Stay Permits (KITAS)

Once your PT PMA is operational, it can sponsor foreign directors or employees through KITAS (Limited Stay Permits), allowing you to live and work legally in Bali.

Capital Requirements for PT PMA

The Indonesian government mandates the following investment structure for foreign-owned companies:

Minimum paid-up capital: IDR 2.5 billion (~USD 160,000)
Minimum total investment: IDR 10 billion (~USD 650,000)
Shareholder structure: Minimum of two shareholders (can be both foreign individuals or entities)

Note that these are government requirements, and compliance is essential to avoid penalties or issues with immigration and taxation.

Can You Own Property Through a PT PMA?

Yes, a PT PMA is one of the few legal methods for foreigners to lease or control property in Bali for business purposes. The company can obtain Right to Build (HGB) or Right to Use (Hak Pakai) land titles. These allow legal long-term control over commercial property — such as villas, hotels, or offices.

Benefits of Using The Bali Lawyer

Navigating Indonesian bureaucracy and language barriers can be daunting for foreign entrepreneurs. That’s why working with a professional legal consultant is essential. At The Bali Lawyer, we offer:

Complete PT PMA company setup packages
Legal documentation and compliance support
Tax and operational licensing assistance
Local zoning and land use advice
Immigration and KITAS support
Ongoing legal consulting and business advisory

Our team has years of experience helping foreign investors enter the Indonesian market safely and legally. We ensure you avoid costly mistakes, delays, or regulatory complications.

Common Mistakes Foreigners Make When Setting Up a PT PMA

Using a nominee arrangement – Illegal and risky; the government has increased enforcement.
Choosing the wrong business classification – Can result in rejection or restrictions.
Undercapitalizing the company – Failure to meet capital requirements can lead to license revocation.
Not understanding zoning laws – Operating in residential zones can lead to shutdowns.
Ignoring tax and employment laws – Heavy fines for non-compliance.

Let The Bali Lawyer guide you through the legal way — from start to success.

Start Your Business Journey in Bali the Right Way

Establishing a PT PMA in Bali offers a legally secure, long-term, and profitable way to run your business in Indonesia. From tourism to real estate, hospitality to retail — your opportunities are vast if you take the correct legal path.

Whether you’re a solo entrepreneur, a foreign investor, or an international brand, The Bali Lawyer is your reliable legal partner in Bali. We simplify the process, ensure compliance with the latest laws, and give you peace of mind as you focus on growing your business in paradise.