🅿️ Bali might look like paradise 🌴—but for foreigners wanting to start a consultancy business here, things can quickly get complicated. From unclear legal rules to nominee traps and shady advice, the journey often begins with confusion and frustration.
🅰️ Some expats assume they can just register a business under a friend’s name or skip legal steps because “everyone else does it.” But this often leads to massive risks: frozen bank accounts, visa issues, or even deportation 🚫. Imagine building your dream consultancy, only to see it shut down due to one missing license.
🆂 ✅ The good news? You absolutely can build a legit, fully licensed consultancy business in Bali—without breaking the law or relying on risky shortcuts. With the right legal structure (like a PT PMA), local advisors, and proper tax setup, your consultancy can operate professionally and scale smoothly.
🆃 📣 “I didn’t know where to start,” says Alex, a UK-based business coach now operating legally in Bali. “But once I registered my PT PMA and got proper guidance, I was able to land local clients within 3 months—and sleep peacefully at night!”
🅴 🌍 For example, a digital marketing consultant from Germany wanted to offer corporate branding services in Bali. After setting up a PT PMA with help from local consultants, she was not only able to open a business bank account, but also secure a KITAS and offer official invoices to clients.
🅰️ Want to start your own consultancy the right way? 📋 Stick with this blog—I’ll guide you through every legal step, from choosing your business classification to getting your KITAS approved, so you can focus on helping your clients while staying 100% compliant. Let’s get started! 💼
Table of Contents
- Can Foreigners Start a Consultancy Business in Bali? 💼
- Risks of Starting Without a Legal PT PMA Setup in Bali ⚠️
- Real Story: “I Trusted a Local Partner—And Lost Control of My Company” 😓
- Step-by-Step: How to Register a Legal PT PMA in Bali 📝
- What Documents You Need to Open a Business in Bali 📄
- KITAS vs Business Visa: What You Actually Need as a Consultant 🛂
- Costs & Timelines for Setting Up Your Consultancy in Bali ⏳
- How to Stay Tax Compliant and Invoice Clients in Bali 💰
- FAQs About Starting a Consultancy Business in Bali ❓
Can Foreigners Start a Consultancy Business in Bali? 💼
Yes, absolutely! Foreigners can start a consultancy business in Bali—but only if it’s done legally. Many expats want to offer services like business strategy, digital marketing, coaching, or wellness consulting.
However, Indonesian law requires foreigners to register a legal business entity to operate. The most common and safe option is to open a PT PMA (Penanaman Modal Asing), which is a foreign-owned limited liability company.
This structure not only allows you to work legally, but it also protects your assets, lets you open a business bank account, and makes it easier to apply for a long-stay visa like a KITAS.
Risks of Starting Without a Legal PT PMA Setup in Bali ⚠️
Starting a business without the correct legal setup can lead to serious consequences. Some foreigners try to shortcut the process by using a local nominee’s name or registering as a sole trader under someone else.
But doing this means you don’t actually own your company. You risk having your business seized, your bank account frozen, and your visa cancelled. Immigration and tax authorities in Indonesia are tightening regulations, especially in popular areas like Canggu and Ubud.
For full control and long-term safety, setting up a PT PMA in Bali is the only proper way.
Real Story: “I Trusted a Local Partner—And Lost Control of My Company” 😓
James, a brand consultant from Australia, moved to Bali to start his own consultancy business.
“At first, I was told that setting up a PT PMA was expensive and time-consuming. So I partnered with a local friend and put the business under his name,” James recalls. “Things were fine for a while, but once we started making money, he changed the bank access and even locked me out of the company documents.”
It took James over a year to fight back legally. “The worst part? I wasn’t even the legal owner—so I had almost no protection,” he says. This kind of story isn’t rare in Bali. Choosing the right structure like a PT PMA not only protects your ownership but also helps build trust with local clients and authorities.
Lesson learned: Starting a business with a romantic partner in Bali is extremely risky—especially for foreigners, who are often more vulnerable to being taken advantage of. Always prioritize legal security over personal relationships.
Step-by-Step: How to Register a Legal PT PMA in Bali 📝
Opening a consultancy business in Bali as a foreigner starts with choosing the right business classification. For consultancy, this typically falls under KBLI codes for professional, scientific, or technical services. Then you need to:
- Reserve a company name (must be unique)
- Get approval from BKPM (Investment Coordinating Board)
- Draft and notarize your Deed of Establishment
- Apply for a business license (NIB)
- Register for taxes (NPWP)
- Open a corporate bank account in Indonesia
This process usually takes 4–6 weeks with the help of a consultant. Hiring a local legal agent or notary who understands PT PMA Bali regulations is highly recommended.
What Documents You Need to Open a Business in Bali 📄
You’ll need a few essential documents to legally register your business:
- Copy of your passport
- Statement of investment plan (usually USD 10,000+)
- Local office address contract (not a virtual address)
- Personal tax number (NPWP)
- Company structure draft (shareholders, director)
For a PT PMA, the Indonesian government requires a minimum paid-up capital (usually around IDR 10 billion, or approx. USD 670,000), but you don’t have to deposit it all at once—proof of intent is enough to register and start operations.
KITAS vs Business Visa: What You Actually Need as a Consultant 🛂
Many expats ask, “Do I need a KITAS to start a business in Bali?” The answer depends on how involved you are in daily operations. If you’re managing the company or consulting clients, then yes—you need a KITAS for business. A business visa (B211A) only allows meetings and networking, not active work.
A KITAS gives you residency and legal work status for 6–12 months (extendable), and it’s tied to your PT PMA. You’ll also need to register with BPJS (social security) and report to immigration. Having the correct visa not only keeps you compliant but also helps when signing contracts or dealing with banks.
Costs & Timelines for Setting Up Your Consultancy in Bali ⏳
Setting up a consultancy business in Bali legally involves both time and money, but it’s manageable. Here’s a rough cost breakdown:
- Legal agent fees: $1,500–$3,000 (includes setup + licenses)
- KITAS application: $800–$1,200
- Office rental: varies ($200–$600/month for small space)
- Misc. admin/tax fees: $300–$500
Timeline: around 4–6 weeks if all documents are ready. Trying to cut corners usually leads to delays. Investing upfront in proper setup saves you time, money, and headaches later.
How to Stay Tax Compliant and Invoice Clients in Bali 💰
Once your PT PMA Bali is set up, you must register for monthly tax reporting. This includes:
- PPh 21 (employee tax if you hire staff)
- PPh 23 (services tax)
- VAT (if revenue exceeds threshold)
- PPh 25 (corporate income tax installment)
You’ll also need an official e-invoice system to bill clients properly. Most foreign consultants use an Indonesian accountant to handle this. Tax compliance is one of the biggest benefits of having a legal setup—you can invoice professionally and even work with corporate or international clients.
FAQs About Starting a Consultancy Business in Bali ❓
-
Do I need an Indonesian partner to open a PT PMA?
No, a PT PMA allows 100% foreign ownership for most consulting categories.
-
Can I start without a KITAS?
You can set up the company, but to actively work, you need a KITAS.
-
Is it expensive to start?
It's an investment, but there are scalable options depending on your budget.
-
Can I live in Bali long-term with a PT PMA?
Yes, having a company makes it easier to get long-stay visas and residency.
-
What if I already have a freelance visa?
That doesn't allow active work. Switching to a business KITAS is the legal route.
