How to Open a Company in Bali and Indonesia: A Comprehensive Guide by The Bali Lawyer

Starting a business in Bali or elsewhere in Indonesia offers a wealth of opportunities, thanks to the region’s booming tourism industry, rich culture, and growing economy. However, navigating the legal landscape can be challenging. At The Bali Lawyer, we specialize in helping entrepreneurs establish their companies smoothly and efficiently. This guide provides a step-by-step overview of the process, ensuring you have all the information you need to succeed.


Why Open a Company in Bali and Indonesia?

Indonesia, the world’s fourth most populous country, offers a dynamic market with vast potential. Bali, in particular, is a hotspot for tourism and hospitality, making it an ideal location for businesses in these sectors. Other benefits of setting up a company in Bali and Indonesia include:

  • Growing Economy: Indonesia’s GDP growth consistently ranks among the highest in Southeast Asia.
  • Strategic Location: Positioned between the Pacific and Indian Oceans, Indonesia is a key gateway for global trade.
  • Diverse Market: With a large and young population, there is a high demand for new products and services.
  • Tourism Hub: Bali attracts millions of tourists annually, providing a steady stream of potential customers for your business.


Steps to Open a Company in Bali and Indonesia

  1. Determine Your Business Structure

    • PT PMA (Foreign-Owned Company): Suitable for foreign investors, allowing 100% foreign ownership.
    • Local PT (Local Company): Requires at least two Indonesian shareholders.
    • Representative Office: Ideal for market research and networking, without engaging in commercial activities.
  2. Name Your Company

    • Ensure the name is unique and complies with Indonesian naming regulations.
    • Conduct a name search through the Ministry of Law and Human Rights.
  3. Prepare the Required Documents

    • Articles of Association: Outlines the company’s structure, purposes, and internal regulations.
    • Identification Documents: Copies of passports for foreign shareholders and IDs for local shareholders.
    • Business Plan: Describes the business activities, financial projections, and operational strategies.
  4. Notarize the Deed of Establishment

    • A notary public will draft and notarize the Deed of Establishment, which includes the Articles of Association.
  5. Obtain the Approval from the Ministry of Law and Human Rights

    • Submit the notarized Deed of Establishment to the Ministry for approval.
  6. Register for Tax Identification Number (NPWP) and Business Identification Number (NIB)

    • Register with the tax office to obtain an NPWP.
    • Apply for an NIB through the Online Single Submission (OSS) system.
  7. Obtain Business Licenses and Permits

    • Depending on your business activities, you may need additional licenses and permits from relevant government authorities.
  8. Open a Corporate Bank Account

    • Choose a reputable bank in Indonesia to open a corporate account for your business transactions.
  9. Hire Employees and Register for Social Security

    • Hire local or foreign employees and register them with the Social Security Administration (BPJS).


Legal Requirements and Compliance

  • Minimum Capital Requirements: For a PT PMA, the minimum paid-up capital is USD 175,000.
  • Local Content Requirements: Certain industries have regulations on the proportion of local and foreign ownership.
  • Annual Reporting: Companies must submit annual financial reports and tax returns to the relevant authorities.
  • Employment Regulations: Adhere to Indonesian labor laws, including minimum wage, working hours, and employee benefits.


Common Challenges and How to Overcome Them

  • Bureaucratic Processes: The Indonesian bureaucracy can be complex and time-consuming. Partnering with a local legal expert like The Bali Lawyer can streamline the process.
  • Cultural Differences: Understanding local customs and business etiquette is crucial for smooth operations.
  • Language Barrier: While many Indonesians speak English, official documents are often in Bahasa Indonesia. Professional translation services are recommended.


Why Choose The Bali Lawyer?

At The Bali Lawyer, we offer comprehensive legal services to help you navigate the intricacies of establishing a business in Bali and Indonesia. Here’s why you should partner with us:

  • Expertise in Indonesian Law: Our team of experienced lawyers specializes in corporate law, ensuring full compliance with local regulations.
  • Personalized Service: We provide tailored solutions based on your unique business needs and goals.
  • End-to-End Support: From initial consultation to obtaining all necessary licenses and permits, we handle every step of the process.
  • Local Knowledge: With extensive knowledge of the local market and business environment, we help you avoid common pitfalls and make informed decisions.



John D., Entrepreneur:
“The Bali Lawyer made the entire process of setting up my business in Bali seamless and stress-free. Their expertise and dedication were evident at every step.”

Sarah L., Investor:
“I highly recommend The Bali Lawyer for anyone looking to start a company in Indonesia. Their professionalism and local knowledge are unparalleled.”


Contact Us

Ready to start your business in Bali or Indonesia? Contact The Bali Lawyer today for a consultation. Let us help you turn your business vision into reality.


Frequently Asked Questions (FAQs)

Q: Can a foreigner own 100% of a company in Indonesia?
A: Yes, through a PT PMA (foreign-owned company), foreigners can own 100% of the business, depending on the sector.

Q: What are the main sectors open to foreign investment in Indonesia?
A: Key sectors include tourism, manufacturing, mining, agriculture, and services. However, some sectors have restrictions on foreign ownership.

Q: How long does it take to establish a company in Indonesia?
A: The process typically takes 1-2 months, depending on the complexity of the business and the efficiency of document processing.

Q: Do I need a local partner to open a business in Bali?
A: It depends on the business structure. For a local PT, a local partner is required. For a PT PMA, no local partner is needed.

Q: What is the minimum capital requirement for a PT PMA?
A: The minimum paid-up capital for a PT PMA is USD 175,000.