Company registration in Bali

Those wishing to work in the Southeast Asian continent should determine in advance the location of their future corporation. One of the top locations is the Indonesian island of Bali. Although the island is considered an Indonesian`s territory, this island has several rules and requirements for Bali company, which significantly distinguish its possibilities from the rest of the country.

Due to such potentials, a lot of company in Bali is created today. The popularity among the co-founders of legal entities has led local authorities to think about providing interesting opportunities for those who want to undergo the procedure of Company registration in Bali.

But before approaching local officials, you need to apprehend basic things. For example, what is a foreign-company for the local-legislation, what docs need to be collected by investors, and what corporations in principle can be opened on this island?

How to register a company in Bali

Before starting Company Registration Bali, it is important to apprehend if you can meet all the requirements imposed by the local-regulator. If you can meet the requirements, then you can begin the registration process. Regarding the form of registering a company in Bali, it will be the identical for all, namely PT PMA. This is a limited-liability-company, which has direct acquisition by outsiders. It does not matter what percentage of foreign assets willpower be contributed.

If you intend to pass on Bali company registration only to this legal-entity to represent the interests of corporation, you can create a representative office. But in this case, you will not be capable to receive income from the accounts of the Indonesian`s corp. Moreover, such a corporation cannot have employees and they can be hired through a special service.

Types of corporations in Bali

Studying the types of company registration in Bali, you can notice that in addition to the separation of 2 types of request corporations in the region are also divided by the amount of funds:

• micro companies have less than 50 IDR in their accounts;
• small corporations from 51 to 500 million;
• medium corporations from 501 mio to 10 bil.;
• large corporations with registered assets of 10 bil. and more Indonesian rupiahs.

At the same time, 25% of this share can be in the company’s accounts at the time of incorporation`s. It is also important to remember that corporations operating in the financial industry, logistics, forwarding and e-commerce must necessarily have the status of only large corporations. Otherwise, they will not meet company registration requirements in Bali and will not be able to operate in the local market.

It is also crucial to consider that not all areas of movement can have foreign assets. For example, in small stores and beauty salons, foreigner`s can not own any stakes. But for trade and export-activities, they can have a 67% stake.

Procedure for creating a legal entity and deadlines

If you decide to go through the procedure of registration of a company in Bali, you may first start with the local-financial-authorities. Here you will be given a list of docs and prerequisites that must be met. The main condition is that the co-founders have 25% of the authorized capital at the time of registration of a legal entity. If this amount is not on hand, registration is not possible.

At least 2 persons or legal-entities have to be shareholder`s. Request of 100% of shares by one owner is impossible. If the owners are legal entities, an authorized officer or director who is responsible for the construction of the corps can be listed.

In addition, it is mandatory to provide docs confirming the hiring of a director`s and a commissioner. There must be at least 2 directors, one of which must be a resident of Indonesia. The foreign-director must apply for KITAS. There are no such requirements for the commissioner (he may not reside in Indonesian territory at all).

If the legal entity meets these conditions, you need to choose a name and assign a special code. Also at this stage, you can immediately communicate the necessity for a license to accomplish certain movements. Unfortunately, online-company registration in Bali or applying for a license is not possible. Therefore, all documents are filled out and submitted during meetings with local officials. For companies with licensed activities, a local license for Bali or a central permit which is issued in Jakarta is required.

Once the paperwork is accepted, the regulator has 16 business days to prepare to register the new corporation. But in Bali, transactions are processed much longer (due to the lack of online application forms). Accordingly, it will be possible to check company registration in Bali in various registries only after 3 months. If the docs have been submitted correctly the first time and no edits are required, the process may take only a month. When the data on the enrollment of a legal entity appears in the local system, you can start your corporation.

Who can help with registering a legal entity in Bali

Trying to go through the registration process on your own can fail. Many co-founders of legal entities have tried many times. But the constant need to make changes made them refuse to begin their own corporation.

We perform Company Formation Services in Bali and can help you resolve this issue. We have a team of experienced lawyers where everyone knows their corporation. During the initial consultation, we are ready to review the package of documents provided and suggest what needs to be corrected and how it can be done. All applications submitted with our help, have been approved within a month. So while your competitors are still 2 months away from correcting the docs, you may already be earning a decent income. Entrust the enrollment of your legal entity to professionals.