Bali

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Bali offers an exceptional environment for foreign investors, combining a unique lifestyle, a thriving tourism-based economy, and a rapidly growing business climate. Registering a company in Bali provides access to a favorable tax system, legal entry into the Indonesian market, and the opportunity to obtain business and work visas (KITAS).

Legal Basis

Registering a company in Bali, Indonesia, is governed by the Company Law No. 40 of 2007 (Limited Liability Company Law) and regulations administered by the Ministry of Law and Human Rights (Kementerian Hukum dan HAM). The Indonesian Investment Coordinating Board (BKPM) oversees the process, now integrated into the Online Single Submission (OSS) System, which centralizes all business registration and licensing procedures.
Foreign investors may set up a foreign-owned company (PT PMA) if they comply with the restrictions in the Negative Investment List or the Positive Investment List. Registering a company in Bali offers several key advantages for entrepreneurs in tourism, digital, and real estate sectors:

  • Legal market access, allowing the company to sign contracts, lease or own certain commercial assets, and employ local staff.
  • Enhanced legal protection, as a registered company gains separate legal personality and formal recognition from Indonesian authorities.
  • Improved credibility with suppliers, banks, partners, and eligibility for business and work visas (KITAS) for foreign investors and employees.
  • Regional economic advantages, as Bali attracts many foreign entrepreneurs in hospitality, digital services, and construction.

How to Register a Company in Bali: Identify the appropriate legal entity type:

  • PT PMA (foreign-owned company) requires a minimum capital of about IDR 10 billion, or approximately USD 650,000, and may require a local partner in some cases.
  • A Local PT (domestic company) must be fully owned by Indonesian nationals.
  1. Reserve the Deed of Establishment with a public notary.
  2. Draft the Deed of Establishment with a public notary.
  3. Obtain a Business Identification Number through the OSS platform, which replaces previous licenses.
  4. Register for tax (NPWP) and open a corporate bank account.
  5. Apply for sector-specific licenses, such as those for hospitality, trade, or real estate, depending on the business activity.

Summary

Registering a company in Bali enables legal operation in one of Southeast Asia’s most dynamic, tourism-driven environments. However, foreign investment regulations remain strict, especially regarding property ownership and activities reserved for Indonesian nationals. Contact Benoit & Partners today to ensure the right structure, achieve compliance with the Positive Investment List, and facilitate all liaison with Balinese authorities and notaries. Our lawyers, based in Bangkok, work with trusted partners in Bali and can travel to assist clients throughout the incorporation and compliance process.