Nowadays, interest in the registration of a company in Bali continues to grow. Entrepreneurs see it as an opportunity to enter a Southeast Asian market that has an amalgamation of pleasant climate, lifestyle benefits and potential for commerce. Nevertheless, the crash of expectations can happen when it comes to the actual course of action, so you must be prepared. Country’s legal and administrative landscape remains formal, precise stages are introduced, and coordination with multiple institutions happens. The article will familiarize you with the most vital details about company registration in Bali.
Company formation in Bali: Overview of rules
The jurisdiction relies on a central model — the PT PMA — for ventures involving non-residents. This model is rooted in national law and became consistent in its structure, even as digitalisation has accelerated processing in the last few years.
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Administrative path for company formation in Indonesia begins with name reservation. Names must follow formal linguistic and structural rules, and rejections are still common for names deemed too generic, overly promotional, or similar to existing entities. After the name is accepted, a notary drafts the founding deed in the prescribed format, summarising purpose, activities, founder identities, share portions, leadership roles, and the designated place of correspondence.
Validation by the Indonesian ministry is the next stage. Approval results in the legal creation of the PT PMA, after which the setup becomes visible in the state-operated online system. Only then can you obtain a NIB and proceed with additional clearances tied to the sector.
Activity categories determine how open a field is to non-residents. Some sectors allow full participation; others permit only partial participation or require an additional layer of review. Selecting inappropriate categories is one of the main causes of application setbacks. Field alignment must therefore be decided before any filing, not after.
Advantages of Bali company formation
- Investor stay permit tied to this setup is among the very few predictable routes for non-locals to reside in a country for multi-year spans, escaping the rigmarole of continuous visa hopping. It will be structured, but significantly more stable than short-term visa hopping.
- In terms of PT PMA, banks consider it to be a standard corporate entity capable of having accounts, receiving payments, performing transactions with business partners, and even signing contracts. Without a formal establishment, access to these features is not possible, which drastically reduces the ability to achieve on the island.
- Formal setup permits the applicant to lease commercial space, sign long duration contracts, hire workers, and secure utilities. Many counterparties are simply afraid to deal with individuals or some kind of informal associations across uncertainty and risk.
- It will be possible for a PT PMA to be operating in a number of activity lines provided they stay within the same or an adjacent field. A mismatch will only mean more checking up or splitting up activities in separate setups.
- A virtual correspondence location is often enough, enabling founders to put off real workplaces until the volume of their activity justifies it.
Types of companies business registration Indonesia
In practice, two structures matter when passing company registration in Indonesia:
- PT PMA — aimed at overseas capital, allows controlling stakes in areas where this is permitted.
- PT (local) — ownership fully held by residents.
Most non-locals choose the first since it preserves control and aligns with long-term operational goals.
Normative points for company formation in Bali
Launching a PT PMA demands several elements:
- At least two founders. Passport validity should extend 30 months or more.
- A location for official correspondence, either a physical workplace or a virtual setup.
- A declared capital plan — The figures of 10 billion IDR for certain sectors are put forward.
- Defined leadership roles.
- A founding deed drawn up and notarized, then submitted for validation.
Though the procedure of business registration in Indonesia has become more digitized, coordination with local notaries and authorities remains central.
What you have to do after registration of a business (firm) in Bali
- NIB procurement: This is going to be your basic operational license. It is automatically generated online after validation.
- Additional Approvals: It may require additional approvals based on the risk profile of activities and “class of risk.”
- Bank onboarding: With the deed of incorporation, NIB, and TIN, you will be able to open an account in a local fiscal institution.
- Governance work: Decisions of the board have to be recorded, meetings arranged, and minutes prepared.
- Stay permits: If you do follow the Investor KITAS route, the process entails visa issuance, arrival, local interview, and final permit.
Taxation of business in Bali
Major elements of the tax regime adhere to local law, some of which include the following:
- NPWP for the new entity.
- Filing monthly and yearly returns.
- Employees to insure for health and manpower by enrolling in BPJS.
- PMAs need to file Periodic Investment Activity Report (LKPM). Failure to do so on time could cause problems; the best way is to monitor this closely.
The tax rates themselves are competitive when compared to various other jurisdictions. However, the country does not favor long periods of inactivity.
Our services
Eternity Law International provides tangible support throughout the process of company incorporation Bali, investigating applications rather than just submitting formalities. Specifically, we help with:
- Formation of PT PMA right from reserving a name, until its final approval.
- Organizing meetings in notaries, local ministries, banks, and immigration offices if required for some formal approval or permission regarding business.
- Structuring a valid address arrangement including virtual set-ups, those of which are in line with the formal criteria.
- Structuring ownership and capital contributions so as to meet regional frameworks without overly burdensome administrative overheads.
- Full support for Investor KITAS processing.
- Post-launch maintenance: formalities on an annual basis, accounting, tax routines, and administrative upkeep.
- Help with re registering a company in Bali if you need it.
To find out more information on how to register a company in Bali online, contact us.
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Conclusion
Company incorporation in Bali is very attractive outwardly. The weather is warm, and geographically, it is very strategically located in the middle of many regions. However, it’s more difficult than what one might think. The PT PMA structure gives control, reputational weight, possibly even extended stay possibilities, but it entails just specific requirements, capital planning, and continuous administrative discipline.
While most would wish for a permanent establishment rather than a presence that is ad hoc, costs of trial and error could be saved by working with experienced coordinators who would smoothen the way. Eternity Law International is such a support which includes real execution together with clear expectations.
Eventually, we can help you re register company in Bali if you need it to be done.
FAQ
Can a foreigner own a company in Bali?
Registration of a company for foreigners in Bali is possible. A non-resident can hold stakes through a PT PMA, the format the country uses for ventures involving non-local participants. This format gives control, allows hiring, and provides access to an Investor KITAS. Some fields permit full participation by outsiders, while others impose limits or require extra steps, so the planned profile must align with what the investment list allows
How much does it cost to set up a company in Bali?
In the main, spending would depend entirely on the selected field, place set aside for official communication, notary in charge, and how much third-party assistance is made available. Further costs may ensue, most especially where the activity is categorized under other influences. While that varies from place to place, it is usually computed around government fees, money for the notary, drawing up of legal papers, and post follow-up jobs inclusive of setting up taxes and processing Investor KITAS.
What is the procedure and requirements to set up a company in Bali?
Generally, Bali company registration starts with the selection of the codes of activities and confirmation of their opening to non-residents. A name is then decided upon, and a notary is selected to draft the deed of establishment. It is notarized and then sent for validation. The second step involves obtaining an NIB through the online system at the national level. Subsequently, a sole local director is appointed and a correspondence point is indicated. After the basic structure is known, proceed to clearances in the sector for issuance of tax-ID to open an account in a regional fiscal institution. This is followed by the long-term stay stage in the country.
What is the 6-month rule in Bali?
The term reflects how immigration interprets extended stays by visitors who do not hold long-term permits. If someone spends roughly half a year in the country, officials may conclude that the person is effectively residing there and should switch to a permit designed for longer presence, such as a KITAS. It is not a statutory rule but a practical benchmark used during checks, especially when a person cycles repeatedly through short-term visas.
What are the tax rates for companies in Bali?
Corporate profit is taxed under local rules. In practice, mid-sized companies usually fall into the low- to mid-20% range. Smaller firms can qualify for reduced rates tied to their revenue. VAT applies across many sectors, and some payments are subject to withholding.
If you hire employees, you have to make BPJS contributions. PT PMAs also have to file periodic investment reports in addition to the usual tax filings.