How to Set Up a PT PMA in Bali: Step-by-Step 2026 Guide

Setting up a PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the only way for a foreign investor to legally own and operate a business in Bali. A straightforward PT PMA can be fully incorporated, tax-registered, and licensed to trade in 2–4 weeks through Indonesia’s Online Single Submission (OSS) system, at a total cost of around IDR 30–50 million in professional and government fees – excluding the declared minimum investment of IDR 10 billion.

This is the step-by-step guide our PPAT notaries use every week to set up foreign-owned companies in Bali, Jakarta, and across Indonesia. It is current as of 2026 and reflects the latest post-Omnibus-Law OSS workflow.

What is a PT PMA?

A PT PMA is an Indonesian limited liability company in which foreigners hold equity. It is a full Indonesian legal person – identical in legal capacity to a wholly Indonesian-owned PT – and can own property under HGB, employ staff, sponsor KITAS work permits for foreign directors and shareholders, enter contracts, and sue or be sued in Indonesian courts. A PT PMA is the only legal vehicle for sustained foreign commercial activity in Indonesia; using a tourist visa to run a business is a serious immigration and tax offence.

Before you start – key decisions

1. Choose the right KBLI code (business activity)

Every PT PMA must declare one or more KBLI codes – the 5-digit Indonesian Standard Industrial Classification codes that define what the business is allowed to do. The 2021 Positive Investment List (Perpres 10/2021 and its amendments) sets, for each KBLI, whether foreign investment is allowed, what percentage of foreign ownership is permitted, and what licensing tier applies (low, medium-low, medium-high, or high risk).

Most tourism, F&B, villa rental, consulting, e-commerce, and professional-services KBLIs allow 100% foreign ownership. Some – such as domestic air transport, local media, and certain retail activities – are restricted or require partial Indonesian ownership. Getting the KBLI wrong is the most common reason a PT PMA gets stuck at licensing, so confirm it with a lawyer before filing.

2. Decide your shareholders and directors

A PT PMA needs at least two shareholders (individuals or corporate entities, foreign or Indonesian), at least one director, and at least one commissioner. A single shareholder is not permitted. Common structures:

• Two foreign individuals (e.g., a couple or two partners).
• One foreign individual + one foreign or Indonesian company.
• 100% foreign corporate shareholder + one foreign individual.

3. Decide capital

The Positive Investment List sets a minimum investment value of IDR 10 billion per KBLI code per location, excluding land and buildings. This is the declared investment the company commits to realise, not necessarily the amount you must pay in on day one. Paid-up capital – the amount actually deposited into the company’s account – is typically IDR 2.5 billion, with the balance committed to be invested over time. Our firm structures capital realistically based on your real business plan.

4. Choose a registered address

The company must have a registered office in an approved commercial zoning area. For villa rental operators, the registered office can often be the operational villa. For service businesses, coworking addresses and virtual offices are acceptable in most KBLI codes. In Bali, Badung, Denpasar, and Gianyar regencies each have different zoning overlays, so the address must match the KBLI.

The 6-step incorporation process

Step 1 – Reserve the company name

File a name reservation with the Ministry of Law and Human Rights (Kemenkumham) via the AHU Online portal. The name must be three words minimum, unique, and comply with naming rules (no political figures, religious references, or reserved words). Reservation typically takes 1–2 business days. Tip: always have three name alternatives ready.

Step 2 – Draft and sign the Deed of Establishment

The Deed of Establishment (Akta Pendirian) is drafted by a notary and signed by all shareholders – in person or by power of attorney. It contains the company’s articles of association, KBLI codes, capital structure, shareholding breakdown, and the names of the directors and commissioners. Turnaround: 2–3 business days for a standard deed.

Step 3 – Obtain SK Menkumham (Ministry approval)

The notary submits the deed electronically to Kemenkumham, which issues the SK Menkumham – the formal legal certificate that the PT PMA exists as an Indonesian legal person. This usually arrives within 1–3 business days.

Step 4 – Register at OSS (Online Single Submission)

Once the company exists, the directors (or an appointed lawyer with a power of attorney) register it on oss.go.id. The system issues:

• NIB (Nomor Induk Berusaha – Business Identification Number). This is the company’s single business number, replacing the old TDP, API-U, SIUP, and customs number.
• Risk-based business license appropriate for the KBLI (low-risk is auto-issued; medium-low requires a Standard Certificate; medium-high and high risk require additional technical approvals).
• NPWP (tax identification number).

Step 5 – Tax registration (PKP if needed)

With NPWP in hand, the company should consider registration as a VAT taxable entrepreneur (Pengusaha Kena Pajak, PKP). PKP is mandatory once annual turnover exceeds IDR 4.8 billion but can be elected voluntarily earlier, which many B2B businesses do to reclaim input VAT. This usually takes 1 week.

Step 6 – Sector-specific operating licenses

Some activities require licenses beyond OSS. The most common in Bali:

• Tourism: TDUP (Tourism Business Registration) – mandatory for villa rental, hotel, restaurant, tour operator, spa, and event organiser KBLIs.
• Construction: SBUJK (Construction Service Business License).
• Food and beverage: BPOM certification for packaged food; halal certification where applicable.
• Education: Ministry of Education permits for schools, training centres, and language academies.

These add 2–8 weeks depending on complexity and the agency’s workload.

After incorporation – ongoing compliance

A PT PMA has substantial ongoing obligations. Our team manages these for most clients on a monthly retainer, but founders should at minimum know what is required:

• Monthly tax filings: VAT (if PKP), withholding taxes on employee salaries and service payments (PPh 21, 23, 26), and withholding on rental payments.
• Annual corporate income tax return: PPh Badan, due by end of April the following year. Corporate rate is 22% (11% for small businesses on the first IDR 4.8bn of turnover).
• Annual LKPM: Investment Activity Report, filed quarterly on OSS. Missing this is one of the top reasons foreign companies get their NIB temporarily suspended.
• Annual general meeting and shareholder resolutions.
• KITAS sponsorship: If foreign directors or shareholders want to live in Indonesia, the company sponsors their KITAS (separate fee of ~IDR 15–20 million per person per year).

Timeline and cost summary

Can I incorporate remotely?

Yes – the entire PT PMA incorporation process can be completed without the shareholders setting foot in Indonesia. Shareholders sign the Deed of Establishment at an Indonesian consulate or via a notarised power of attorney executed in their home country and apostilled or legalised. Our team handles the notarial logistics and collects all documents in one batch, which typically saves clients three to four weeks compared to flying to Bali to sign.

Common pitfalls when setting up a PT PMA

1. Choosing a KBLI that does not match the actual activity. Licensing failures and tax penalties follow.
2. Under-capitalising. Some KBLIs require evidence of paid-up capital before the operating license is issued.
3. Skipping LKPM reports. Quarterly investment reports are easy to miss and trigger OSS suspensions.
4. Registering the wrong address. Zoning overlays in Badung and Denpasar are strict; residential addresses fail tourism and F&B licensing.
5. Using personal accounts for company receipts. Always open a dedicated PT PMA bank account immediately after incorporation.