Starting a business in Bali is a common aspiration, but for foreign investors, the path is often fraught with misinformation and regulatory hurdles.
Many aspiring entrepreneurs are led astray by “easy” fixes like using local nominees, only to find themselves facing legal instability or loss of assets down the road.
The complexity of investment laws, capital requirements, and zoning regulations can turn the dream of a tropical headquarters into a bureaucratic nightmare if not navigated correctly.
The good news is that the Indonesian government has streamlined the process for foreign investors through the Risk-Based Online Single Submission (OSS-RBA) system.
By establishing a PT PMA (Foreign Investment Company), you gain a secure, fully legal vehicle to operate, earn revenue, and sponsor visas.
This structure offers 100% foreign ownership in most sectors, providing the protection and control that informal arrangements simply cannot match.
This guide provides a definitive roadmap on the process of Bali business registration foreigners need to follow in 2026. From meeting the IDR 10 billion investment threshold to securing your business license, we break down every critical step.
Whether you plan to open a boutique villa in Canggu or a consulting firm in Ubud, this article ensures your venture is built on solid legal ground.
Table of Contents
- Eligibility and Core Requirements in Bali
- Pre-Registration: Structure and KBLI
- Drafting the Deed of Establishment
- Securing Legal Entity Status
- Tax Registration and Domicile
- Real Story: The Uluwatu Surf Shop Pivot
- OSS-RBA and Licensing in Bali
- Banking and Capital Injection
- FAQs about Bali Business Registration
Eligibility and Core Requirements in Bali
Before diving into paperwork, it is crucial to understand the foundational requirements for a PT PMA. Unlike a local PT, which is reserved for Indonesian citizens, a PT PMA allows foreign ownership but comes with higher entry barriers.
You generally need at least two shareholders, which can be foreign individuals or foreign corporate entities. Additionally, the company structure must include at least one Director to manage operations and one Commissioner to oversee the company.
Financially, the Investment Coordinating Board (BKPM) mandates a significant commitment. To protect local micro-businesses, the government requires a total investment plan of more than IDR 10 billion per business line (KBLI), excluding land and buildings.
Of this amount, at least IDR 2.5 billion must be paid-up capital. Meeting these thresholds is the first major filter regarding Bali business registration foreigners must pass to ensure their application proceeds smoothly.
Pre-Registration: Structure and KBLI
The first strategic step is determining the correct business classification, known as KBLI (Klasifikasi Baku Lapangan Usaha Indonesia).
Every business activity in Indonesia corresponds to a specific 5-digit code that dictates the foreign ownership limits and licensing requirements.
For example, a restaurant has a different code than a management consultancy, and mixing them up can lead to rejected licenses.
You must also decide on your company name, which must consist of three words (e.g., “PT Bali Global Ventures”). At this stage, you should also finalize your shareholding structure.
Will you own 100% of the shares, or will you have partners? Clarifying these details early prevents costly amendments later. This planning phase is vital for a successful setup, as it sets the legal scope for everything that follows.
Drafting the Deed of Establishment
Once your structure is defined, the formal process begins with an Indonesian notary. The notary will draft the Deed of Establishment (Akta Pendirian), which acts as the company’s constitution.
This document details the company’s name, domicile in Bali, capital structure, and the composition of the Board of Directors and Commissioners.
It is important to note that the Deed must be in Bahasa Indonesia, although a bilingual version is often provided for your reference.
You will need to provide valid passports for all individual shareholders and legal documents for any corporate shareholders.
The notary ensures that your proposed activities align with the KBLI codes and that your capital allocation complies with Indonesian Company Law.
Securing Legal Entity Status
After the Deed is signed, the notary submits it electronically to the Ministry of Law and Human Rights (MOLHR) for approval.
This step transforms your company from a concept into a recognized legal entity. The Ministry issues a Decree (SK Pengesahan) confirming the company’s establishment.
This Decree is the foundational document of your business. Without it, you cannot open a bank account, sign contracts, or hire staff. It establishes the company as a separate legal entity, offering limited liability protection to its shareholders.
For those navigating Bali business registration foreigners rely on, this document is the keystone of your legal standing in Indonesia.
Tax Registration and Domicile
With your legal entity status secured, the next step is integrating into the tax system. You must obtain a Tax Identification Number (NPWP) for the company from the local tax office in Bali. You will also need to register for EFIN (Electronic Filing Identification Number) to enable online tax reporting.
Simultaneously, you need to verify your business domicile. While some regions have relaxed the requirement for a physical Domicile Letter (SKDP), having a valid address is non-negotiable.
This address must be in a commercial or mixed-use zone; residential addresses are generally not accepted for PT PMA registration. Many investors use a compliant virtual office service in Bali to satisfy this requirement during the initial startup phase.
Real Story: The Uluwatu Surf Shop Pivot
Liam, a surf enthusiast from Perth, thought his biggest challenge in Uluwatu would be the competition. He was wrong. It was Customs. Operating his surf shop, “Ombak Gear,” under a nominee arrangement to save money, Liam hit a wall when his shipping container of custom boards arrived from Australia.
The customs officers didn’t care about his brand; they cared that the “owner” on the paperwork (his local nominee) had no import license and no capital history.
Liam watched helplessly as his inventory sat locked at the port, held hostage by his own shortcut. The nominee, seeing the leverage, demanded a 30% cut of the stock to sign the release forms. Desperate, Liam contacted Bali Visa.
The team advised him to pivot immediately to a PT PMA. It required a significant capital injection, but it was the only way to regain control.
They helped him liquidate the messy nominee arrangement and register “PT Ombak International.” With the new entity, Liam obtained his own import license and an Investor KITAS. “
The upfront cost was scary,” Liam admitted, “but signing the import docs with my own name saved my business.” He learned that the correct process for Bali business registration foreigners avoid is actually their safety net.
OSS-RBA and Licensing in Bali
Indonesia now uses the Risk-Based Online Single Submission (OSS-RBA) system for business licensing. Once your company has its NIB (Business Identification Number), the system automatically assesses the risk level of your specific business activities.
Low-risk businesses often get instant approval, while high-risk sectors (like construction or medical clinics) require further verification.
Through the OSS portal, you will apply for your Standard Certificates and specific licenses. For a tourism business, this might include accommodation licenses; for a trading company, it could involve trade permits.
The NIB also serves as your import identifier and customs access rights. Navigating the OSS system correctly is a critical skill required for Bali business registration foreigners to master to avoid operational delays.
Banking and Capital Injection
The final piece of the puzzle is financial operationalization. With your NIB, NPWP, and Ministry Decree in hand, you can open a corporate bank account in Indonesia. Most major banks will require a physical meeting with the Director.
Once the account is open, you must inject the paid-up capital (minimum IDR 2.5 billion) as stated in your Deed.
This injection is not just a formality; it is a legal requirement monitored by the BKPM. You will need to report this investment realization in your quarterly LKPM reports.
Failing to inject the capital can lead to sanctions and difficulties in renewing licenses. Proper capitalization proves to the government that your application is legitimate and beneficial to the local economy.
FAQs about Bali Business Registration
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Can a foreigner own 100% of a business in Bali?
Yes, through a PT PMA, foreigners can own 100% of shares in most sectors, including trading, consulting, and hospitality, subject to the "Positive Investment List."
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What is the minimum capital required for a PT PMA?
The total investment plan must exceed IDR 10 billion per business line (excluding land/buildings), with a minimum paid-up capital of IDR 2.5 billion, a key rule for Bali business registration foreigners must adhere to.
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Do I need a physical office to register?
You need a registered address in a commercial zone. A virtual office is acceptable for registration, but some sectors (like restaurants) eventually require a physical location inspection.
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How long does the registration process take?
Generally, the entire process from deed drafting to obtaining the NIB and tax ID takes about 2 to 4 weeks, assuming all documents are in order.
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Can I sponsor my own visa with a PT PMA?
Yes, as a shareholder and director of a PT PMA with sufficient capital, you are eligible for an Investor KITAS, which grants residency for 1 to 2 years.
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What happens if I don't inject the paid-up capital?
Failure to inject capital and report it via LKPM can result in administrative warnings, suspension of your NIB, and potential revocation of your business license.
