The Ultimate 2025 Guide to Setting Up a PT PMA in Bali – Establish Your Foreign-Owned Company Legally and Easily

Bali has become one of Indonesia’s most attractive destinations for entrepreneurs, investors, and business owners who wish to expand their ventures in Southeast Asia. With its booming tourism industry, growing digital economy, and strategic connection to the global market, setting up a business in Bali is a dream for many. However, for foreign investors, the right way to do it legally is by establishing a PT PMA (Perseroan Terbatas Penanaman Modal Asing) — a Foreign-Owned Limited Liability Company in Indonesia.

At The Bali Lawyer, we specialize in helping international clients navigate Indonesia’s legal framework to establish PT PMA companies efficiently, ensuring compliance with all local regulations. In this comprehensive guide, you’ll learn everything you need to know about how to set up a PT PMA in Bali, including requirements, steps, and practical tips to start your business successfully.

What Is a PT PMA?

A PT PMA (Foreign Investment Company) is the legal business entity that allows foreign nationals or companies to conduct commercial activities and generate profits in Indonesia. It is recognized and regulated by the Indonesia Investment Coordinating Board (BKPM) under the country’s investment laws.

The PT PMA structure provides foreign investors with official ownership rights, business permits, and legal protection under Indonesian law. It can operate across a wide range of industries, from tourism and hospitality to digital technology, manufacturing, and consulting.

Unlike a local PT company, a PT PMA can have partial or full foreign ownership, depending on the industry’s restrictions under Indonesia’s Positive Investment List.

Why Set Up a PT PMA in Bali

Bali is not just a tourist paradise; it’s also a dynamic business hub with diverse opportunities for foreign investors. Here’s why establishing a PT PMA in Bali is a smart decision:

  1. Strategic Location
    Bali connects Indonesia’s local markets with international opportunities. Its strong tourism, hospitality, and digital sectors make it an ideal location for businesses targeting both local and global audiences.

  2. Legal Foreign Ownership
    Through a PT PMA, foreign investors can legally own and manage a business in Indonesia without needing a local nominee.

  3. Long-Term Business Stability
    PT PMA companies have long-term operational rights and can hire both local and foreign employees.

  4. Visa and Residency Benefits
    Business owners and key employees can obtain a KITAS (Temporary Stay Permit) sponsored by the company, allowing them to reside and work legally in Bali.

  5. Access to Banking and Licensing
    A PT PMA can open business bank accounts, obtain import/export licenses, and engage in legally binding contracts.

Requirements for Setting Up a PT PMA in Bali

Before starting the establishment process, you must prepare the necessary legal requirements. The Bali Lawyer assists in handling all legal documentation and compliance needs, but here’s what’s generally required:

  1. Business Activities and Classification (KBLI Code)
    Determine your business scope under Indonesia’s Standard Business Classification (KBLI). Each business type must align with approved categories.

  2. Company Structure
    A PT PMA must have at least:

    • Two shareholders (individuals or legal entities)

    • One director

    • One commissioner
      These roles can be filled by foreigners or Indonesians.

  3. Registered Business Address
    The company must have a valid business address in Bali, typically in a commercial or office zone. Residential addresses are not permitted for company registration.

  4. Company Name Approval
    The name must be unique, containing at least three words, and approved by the Ministry of Law and Human Rights.

  5. Articles of Association
    The company’s Articles of Association (Akta Pendirian) must be drafted by a public notary in Indonesian and legalized by the authorities.

  6. Business Identification Number (NIB)
    The NIB serves as the company’s main registration number, used for tax, import-export, and licensing purposes.

  7. Investment Plan
    A PT PMA must present an investment plan, which is submitted to the BKPM to show your business intentions and structure.

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

The process of establishing a PT PMA involves several legal and administrative stages. Working with a professional law service like The Bali Lawyer ensures every step complies with Indonesian regulations.

Step 1: Define Your Business Scope and Structure

Determine your main business activity and corresponding KBLI code. It’s crucial to select the right category, as this affects your licenses and investment approval. Then, decide on the company’s shareholders, directors, and commissioners.

Step 2: Check Foreign Ownership Limits

Indonesia’s Positive Investment List specifies which industries allow 100% foreign ownership and which require local partners. Our legal team helps identify your eligible ownership percentage.

Step 3: Company Name Reservation

Submit your preferred company names (at least three options) for approval through the Ministry of Law and Human Rights. The name must be unique and not previously registered.

Step 4: Draft the Deed of Establishment (Akta Pendirian)

A notary will prepare the Articles of Association, outlining the company’s objectives, capital structure, and shareholder information. The document is signed by all parties and legalized officially.

Step 5: Obtain Legal Entity Approval

After the notary process, the company must be registered with the Ministry of Law and Human Rights to receive official legal entity status.

Step 6: Register for the Business Identification Number (NIB)

The NIB functions as your company’s identification number, tax number, and import/export license under the Online Single Submission (OSS) system.

Step 7: Apply for Business Licenses and Permits

Depending on your business activity, you may need specific permits such as a tourism license, retail license, or professional license.

Step 8: Register for Taxes

Once your PT PMA is established, it must register for corporate taxation with the local tax office.

Step 9: Open a Corporate Bank Account

A corporate bank account is required to operate legally, receive payments, and pay operational expenses.

Step 10: Apply for Work and Stay Permits (if needed)

Company owners and key employees can apply for KITAS permits sponsored by the company to live and work legally in Bali.

Advantages of Setting Up a PT PMA in Bali

A PT PMA offers numerous advantages for foreign investors seeking to establish a legitimate and profitable presence in Indonesia:

  1. Full Legal Protection
    Operate under Indonesia’s business law with recognized ownership and investment rights.

  2. Access to the Local Market
    You can sell products or services directly to Indonesian consumers or collaborate with local companies.

  3. Repatriation Rights
    Profits can be legally transferred abroad according to Indonesia’s financial regulations.

  4. Hiring Flexibility
    PT PMA companies can hire both local and foreign staff, offering flexibility for business operations.

  5. Long-Term Operation
    A PT PMA provides a stable foundation for permanent business activities without constant visa renewals or informal arrangements.

Common Mistakes When Setting Up a PT PMA

Many investors make avoidable mistakes during the setup process, which can delay or even jeopardize their business operations. The most common issues include:

  • Choosing the wrong business classification (KBLI).

  • Using a residential address for company registration.

  • Incomplete or incorrectly translated documents.

  • Failure to comply with foreign ownership restrictions.

  • Delays in applying for mandatory licenses.

By consulting with The Bali Lawyer, you can avoid these errors and ensure a smooth registration process. Our experienced legal professionals handle every detail — from name registration to licensing — giving you peace of mind.

After Your PT PMA Is Established

Once your PT PMA is legally registered, there are ongoing legal and administrative obligations to maintain compliance:

  • Annual tax reporting.

  • Company domicile updates (if you move offices).

  • Regular financial audits (depending on your business scale).

  • Timely license renewals.

Failing to maintain compliance can result in penalties or business suspension. The Bali Lawyer offers ongoing corporate legal support to ensure your company remains in good standing with Indonesian authorities.

Why Work with The Bali Lawyer

Setting up a PT PMA in Bali involves detailed procedures and strict regulatory requirements. At The Bali Lawyer, we provide professional assistance to simplify the entire process.

Our services include:

  • Company formation and registration.

  • Legal document preparation and notarization.

  • BKPM and OSS submissions.

  • Business licensing and tax registration.

  • Legal consultation for investment and immigration matters.

We work closely with clients from the first consultation to post-registration compliance, ensuring your business operates legally and efficiently.

Business Opportunities in Bali

Bali’s economy continues to evolve beyond tourism, presenting new opportunities in various sectors. Investors can explore:

  • Hospitality and Real Estate – Hotels, villas, and resorts.

  • Technology and Startups – Software, digital marketing, and e-commerce.

  • Wellness and Lifestyle – Yoga studios, spas, and fitness centers.

  • Sustainable Ventures – Eco-friendly products and renewable energy.

  • Education and Training – Language schools and professional courses.

A PT PMA provides the flexibility and legal structure to engage in any of these sectors while complying with local business laws.

Establishing a PT PMA in Bali is the most secure and legitimate way for foreign investors to conduct business in Indonesia. While the process involves several legal and administrative steps, the benefits — including full ownership rights, operational flexibility, and legal protection — make it an excellent investment for the future.

At The Bali Lawyer, we are committed to guiding you through every phase of your business setup. From choosing the right structure to obtaining the necessary licenses, our expert legal team ensures your PT PMA is established efficiently, correctly, and in full compliance with Indonesian law.

If you are ready to start your business journey in Bali, contact The Bali Lawyer today. We’ll provide professional, transparent, and reliable legal support to help turn your business vision into reality.

The Bali Lawyer
Your Trusted Legal Partner in Bali
Professional Assistance for PT PMA Setup, Visa, and Corporate Law in Indonesia