Company Setup in Bali, Indonesia
Updated November 2026
Short answer: To set up a PT PMA in Bali you check that your business activity (KBLI code) is open to foreign ownership, sign a deed of establishment before a notary, get the company approved by the Ministry of Law, then register on OSS RBA to receive your NIB business number and any licences your risk level needs. You need at least two shareholders, one director and one commissioner, a Bali business address in a zone that allows your activity, and paid-up capital of at least IDR 2.5 billion under BKPM Regulation 5 of 2025.
Key points
- Legal basis: Law 40 of 2007 on limited liability companies and Law 25 of 2007 on investment.
- Minimum paid-up capital: IDR 2.5 billion since 2 October 2025 (BKPM Regulation 5 of 2025). The investment plan must still exceed IDR 10 billion per five-digit KBLI per project location, and the capital is locked in the company account for 12 months except for permitted uses.
- Licensing: risk-based through OSS RBA under Government Regulation 28 of 2025.
- After set-up: quarterly LKPM investment reports, monthly and annual tax filings, and BPJS for staff.
- Bali restriction: since the third week of May 2026 OSS has closed 18 KBLI codes to new foreign-owned companies in Bali, including 55110 and 55120 hotels under 6,000 m2, 55900 other accommodation, 68111 own or leased real estate, 77100 car rental, 77311 motorbike rental, 56303 cafés and drinking houses, and 93116 fitness centres (Bali provincial government with the Ministry of Investment, announced 23 July 2026).
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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 (PBG, which replaced the 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 (at least IDR 2.5 billion paid-up capital and an investment plan of more than IDR 10 billion per KBLI under BKPM Regulation No. 5 of 2025), 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:
- 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:
- 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 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
Jl. Raya Anyar No.15, Kerobokan, Kec. Kuta Utara, Kabupaten Badung, Bali 80361
Jakarta Office
ASG Tower, 15th Floor, Jakarta, Indonesia
Contact
+62 877-9626-0478(Whatsapp)
Open Hours
Monday to Friday 9:00 to 17:00
Saturday 9:00 to 12:00
Sunday closed
What changed, and why 2024 advice is now wrong
Between October 2025 and June 2026 the rules changed four times.
| What changed | When | Now |
|---|---|---|
| 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.
What affects the cost
The total depends on the documents you already have, how many parties are involved, the government charges that apply at the time, and how much drafting or follow-up the matter needs. Government charges are set by regulation and change from time to time, so we confirm the current figures in writing before you commit. Contact us for an exact quote.
What are the steps to set up a PT PMA in Bali?
- Check the KBLI codes. Confirm each activity is open to foreign investment and the maximum foreign share under the positive investment list.
- Choose the structure. Shareholders (individuals or companies, at least two), directors, commissioners, capital and the share split.
- Notary deed. A Bali notary drafts and signs the deed of establishment with the articles of association.
- Ministry of Law approval. The notary files the company with AHU and receives the legal entity approval.
- OSS RBA registration. The company receives its NIB and tax ID, and applies for the standard certificate or licence its risk level needs.
- Bank account and capital. Open the company account and deposit the paid-up capital.
- Office and zoning. Use an address whose zoning allows your activity. A virtual office only works for some activities.
- Visas and staff. Directors and investors apply for KITAS through the company.
What documents do foreign shareholders need?
- Passport copy for every individual shareholder, director and commissioner.
- For corporate shareholders: articles, certificate of incorporation and board resolution, usually apostilled and translated.
- Proposed company name options and business activities.
- Business address details and a lease or office agreement.
- Indonesian tax ID details for any Indonesian director or commissioner.
How long does PT PMA set-up take?
Most of the time goes into preparing documents and choosing the right KBLI codes. Once the documents are ready, the deed, Ministry of Law approval and NIB usually follow quickly for low-risk activities. Medium-high and high-risk activities need verification or a licence from the sector ministry, which takes longer. We give you a written timeline for your activities before you start.
Questions people ask about setting up a PT PMA
Can a foreigner own 100% of a PT PMA in Bali?
Yes, for most activities. Each KBLI code has its own rule under the positive investment list, and a few sectors cap or close foreign ownership, so the codes must be checked first.
What is the minimum capital for a PT PMA?
Since 2 October 2025 the minimum paid-up capital is IDR 2.5 billion under BKPM Regulation 5 of 2025. The investment plan must still exceed IDR 10 billion per KBLI per project location.
Can a PT PMA be set up by one person?
No. A PT needs at least two shareholders. They can be two individuals, two companies or one of each.
Do I need to be in Bali to set up a PT PMA?
Not always. Shareholders can sign through a notarised and apostilled power of attorney, but a director will need to be available for bank and tax steps.
Can a PT PMA own land in Bali?
A PT PMA cannot hold freehold (Hak Milik). It can hold HGB (right to build) and, in some cases, Hak Pakai, or lease land.
Sources: OSS RBA licensing system; Ministry of Investment and Downstreaming / BKPM; Directorate General of General Legal Administration (AHU); ANTARA Bali: 18 business fields closed to PMA in Bali (23 July 2026); BPK regulation database (full texts of laws). Checked November 2026.