Bali’s investment landscape has shifted significantly in 2026, demanding strict adherence to the OSS-RBA (Online Single Submission Risk-Based Approach) and MOLHR (Ministry of Law and Human Rights) protocols. While the island offers immense opportunities, the regulatory framework—specifically capital declarations and zoning—has tightened, making the “nominee” shortcuts of the past a dangerous liability for serious entrepreneurs.
Foreign investors must now navigate a transparent but rigorous path to establishing a PT PMA (Perseroan Terbatas Penanaman Modal Asing). Missteps in your investment structure or business classification (KBLI) within the OSS-RBA system can lead to immediate operational blocks or future audits by the MOLHR or investment board.
This guide outlines the seven essential steps for a safe company setup in Bali, ensuring your venture complies with the latest MOLHR requirements and BKPM regulations via the OSS-RBA portal. oss.go.id
Table of Contents
- Confirm Eligibility and Foreign Ownership Rules
- Plan Capital and Investment Requirements
- Choose Structure, Domicile, and Directors
- Notarization and MOLHR Approval
- Register in OSS-RBA for NIB
- Post-Establishment Banking and Tax Compliance
- Align Visas and Work Permits
- Real Story: The "Nominee" Trap That Cost Millions
- FAQ's about Company Setup
Confirm Eligibility and Foreign Ownership Rules
The first step in a successful Bali business registration is to verify if your intended business sector is open to foreign investment. Under the latest Positive Investment List (Daftar Prioritas Investasi), most sectors in Bali, such as wellness, trading, and hospitality, allow for 100% foreign ownership via a PT PMA. However, certain strategic industries remain restricted or require local partnerships.
You must also meticulously select your KBLI codes (Indonesian Standard Classification of Business Fields). Your KBLI defines your business scope and risk level within the OSS-RBA system. A mismatch between your actual activities (e.g., running a villa) and your registered KBLI (e.g., management consulting) is a primary trigger for sanctions in 2026.
Plan Capital and Investment Requirements
In 2026, financial compliance is non-negotiable for any Indonesian company formation. To establish a PT PMA, you must submit an investment plan exceeding IDR 10 billion per KBLI (excluding land and buildings). While the paid-up capital requirement has been adjusted under BKPM Regulation No. 5/2025 to approximately IDR 2.5 billion, the total commitment remains high to ensure only serious investors enter the market.
This capital must be declared strictly through the OSS-RBA system. Investors are often required to make a “self-declaration” (pernyataan mandiri) confirming their financial capability. Providing false data to the OSS-RBA regarding your capital is risky, as the government monitors realization through quarterly reports.
Choose Structure, Domicile, and Directors
Selecting the right structure is vital for a safe incorporation process in 2026. While nominee arrangements were once common, they are increasingly scrutinized and legally insecure. The PT PMA structure offers full legal protection and control. You will also need a registered office address in a commercial zone; using a residential villa in a Green Zone as your company domicile is often rejected during OSS-RBA licensing verification.
Additionally, a PT PMA must appoint at least one director and one commissioner. The appointment of these officers must be formally reported to the MOLHR database. For practical purposes, having a resident director (foreign or local) facilitates banking and tax processes, which often require in-person biometric verification.
Notarization and MOLHR Approval
Once your structure is defined, a notary will draft the Deed of Establishment (Akta Pendirian). This document outlines your Articles of Association, shareholding structure, and business purposes. It is then submitted to the MOLHR for legal vetting. This is a critical checkpoint in your investment realization.
Upon approval, you will receive a Decree (SK MOLHR) conferring legal entity status to your company. This MOLHR Decree is the “birth certificate” of your business and is required for all subsequent licensing steps. Without this specific MOLHR validation, your company cannot legally enter contracts or register in the OSS-RBA.
Register in OSS-RBA for NIB
With your Deed and MOLHR SK in hand, you must register on the OSS-RBA platform. This system issues your NIB (Business Identification Number), which acts as your registration certificate, importer ID, and customs access number. The OSS-RBA has become the central nervous system for business licensing in 2026.
For low-risk businesses, the OSS-RBA allows the NIB to serve as the final license. However, for medium-to-high risk sectors—common in tourism—the OSS-RBA will issue a “risk-based” license that requires further verification of technical standards before you can fully operate. The OSS-RBA system is directly integrated with the MOLHR database, so any discrepancy in data will block your business establishment.
Post-Establishment Banking and Tax Compliance
After obtaining your NIB via OSS-RBA, you must open a corporate bank account in Indonesia to inject your paid-up capital. Banks will require your full set of legal documents, including the MOLHR Decree, and often the physical presence of the director.
Simultaneously, you must register for a corporate tax ID (NPWP) and, if your revenue is projected to be high, a VAT (PKP) registration. A critical ongoing obligation is the LKPM (Investment Activity Report), which must be submitted quarterly via the OSS-RBA dashboard. Failure to submit LKPM is the number one reason for license revocation in 2026. For specialized assistance with these filings, many investors turn to a trusted tax management company like Bali Accountants.
Align Visas and Work Permits
Finally, ensure your immigration status matches your business role to complete your corporate establishment. Owning shares in a PT PMA does not automatically grant you the right to work. If you are a foreign director performing management duties in Bali, you must obtain a Work KITAS and the associated work permit (Notifikasi).
Attempting to run a foreign-owned entity while staying on a tourist visa is illegal. Immigration authorities regularly audit foreign-owned companies to ensure that all active personnel—as listed in the MOLHR records—hold the correct stay permits.
Real Story: The "Nominee" Trap That Cost Millions
“Liam, an investor from Perth, thought he had outsmarted the system. By using a local nominee for his Uluwatu surf retreat, he bypassed the IDR 10 billion capital requirement, relying on a ‘side agreement’ drafted by a freelance agent. For two years, it worked—until the Uluwatu cliffs became the hottest real estate in Bali. When Liam went to renew his permits in early 2026, his ‘trusted’ nominee suddenly stopped answering WhatsApp.
When they finally met, the nominee didn’t ask about the business; they asked for a 50% ‘equity gift’ to keep the land title in place. Liam realized his ‘contract’ was legally unenforceable under Indonesian investment law. He was a guest in his own multi-million dollar business. It took a grueling six-month legal rescue operation to migrate his assets into a compliant PT PMA. Liam’s lesson was expensive: In Bali, if you don’t own the company on paper, you don’t own the business at all.”
FAQ's about Company Setup
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What is the minimum capital for a PT PMA in 2026?
The investment plan must exceed IDR 10 billion (excluding land and buildings), with a paid-up capital requirement of approximately IDR 2.5 billion reported in OSS-RBA.
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Why do I need MOLHR approval?
MOLHR approval grants your company legal entity status. Without the MOLHR Decree (SK), your company does not legally exist and cannot open bank accounts or sign contracts.
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Can a foreigner own 100% of the shares in Bali?
Yes, for most business sectors in Bali, 100% foreign ownership is permitted under the current Positive Investment List.
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What is the role of the MOLHR in company setup?
The MOLHR validates your Articles of Association and issues the official decree that legalizes your PT PMA structure.
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What happens if I don't report my LKPM in 2026?
The Ministry of Investment (BKPM) may issue written warnings via OSS-RBA, suspend your business services, or even revoke your business license for repeated non-compliance.
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Can I work as a shareholder?
No, being a shareholder effectively makes you an investor. To work or manage the daily operations, you must be appointed as a Director and hold a Work KITAS.
