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Starting a business in Bali as a foreigner

starting a business in bali

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Many are captivated by the idea of starting a business in Bali. The island’s dynamic business activities and diverse international community make it a hotspot for entrepreneurs worldwide. However, navigating how to start a business in Bali can be challenging. This article guides you through the essential steps of starting a company in Bali as a foreigner.

Is Bali a good place to start a business?

Bali is a tourist paradise and a promising location for establishing a company. The island’s international culture, constantly evolving with trends, makes it a fertile ground for various business types, especially those catering to the needs of its diverse population and visitors​​. Popular business choices among foreigners include tourism industries like yoga retreats, villa rentals, entertainment, life coaching, restaurants, and bars. Bali’s continuous influx of foreigners creates numerous opportunities for those willing to explore the Balinese market​​​​.

Before starting a business in Bali, ensure you weigh the pros and cons. The advantages of opening a business in Bali include its global appeal, a steady stream of potential customers, and a creative environment for innovative business ideas. On the downside, the complexity of the legal and bureaucratic processes of starting a business in Bali can be challenging, especially for those unfamiliar with Indonesian laws and business practices.

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What is the cost of starting a business in Bali?

The cost of starting a business in Bali, particularly a PT PMA (a foreign-owned company), can vary. Generally, the prices range from IDR 25 million ($1,575) to IDR 35 million ($2,205). Factors like the business sector, the establishment method, and location within Bali can influence these expenses. Another option is buying a business in Bali, which might cost more, depending on the business type and what’s included in the price.

How to start a business in Bali as a foreigner?

Foreigners can start a company in Bali by following our step-by-step guide.

Step 1: Investment planning

Formulating a solid investment plan is the first critical step in starting a business in Bali. This involves selecting a business sector and ensuring it aligns with Indonesia’s investment regulations, as some industries may have restrictions or prohibitions for foreign ownership​​.

Step 2: Meeting capital requirements

Understand and meet the capital and investment requirements. For a PT PMA, the minimum capital is IDR 10 billion ($630,000). A capital statement letter proving the paid-up capital is essential​​​​.

Step 3: Choosing a business entity

Decide on the type of business entity to register, choosing between PT PMA and KPPA. The PT PMA is the most popular business entity among foreigners, offering up to 100% ownership in many sectors, although restrictions apply to specific industries​.

how to start a restaurant in bali

Step 4: Securing a local business address

A local business address is mandatory for opening a business in Bali. You’ll need to provide documentation signed by local authorities confirming the business location​​.

Step 5: Company registration with the notary

Start your business in Bali with a notary to obtain the Company’s Article of Association (Deed of Establishment), a foundational step for legalizing your business in Bali​​.

Step 6: Acquiring a business license

Following the notary registration, obtaining a business license is essential to operate legally in Bali​​. There are several licenses that might apply to your business, such as Pondok Wisata or Hotel Melati.

Step 7: Hiring and HR management

Consider your staffing needs, including hiring local talent and understanding Indonesian labor laws. Bali’s unique culture and holidays, such as Nyepi, also influence business operations and staffing​​. Ensure you know the cultural differences before starting a business in Bali.

Step 8: Navigating multiple business regulations

If your business encompasses multiple sectors (KBLIs), be aware of the regulations, such as separate investment requirements for each KBLI and shared liabilities within a PT PMA​​.

Start your business in Bali with Own Property Abroad

Starting a business in Bali is made more accessible by Own Property Abroad. Thanks to our extensive knowledge and experience in the Indonesian market and regulations, our expert team can assist you in a seamless and hassle-free property journey.

If you’re serious about establishing a company in Bali, contact us today. We can help you turn your vision into reality. For further information, kindly drop your details below or email us at hello@ownpropertyabroad.com. Let’s start working on your success story!

Get help with starting a business in Bali

Leave your name and email below – We will reach out and assist you on starting a business in Bali.

Frequently Asked Questions (FAQs)

What is the best business type in Bali?

The best business types in Bali for foreigners often revolve around tourism, including yoga retreats, villa rentals, restaurants, bars, and wellness services. The island’s diverse culture and tourism industry offers many opportunities in these sectors.

How much money do you need to start a business in Bali?

Starting a business in Bali, particularly a PT PMA, typically requires between IDR 25 million ($1,575) to IDR 35 million ($2,205). However, the total cost can vary based on the business type and location.

Can foreigners start a business in Bali?

Yes, foreigners can start a business in Bali, predominantly through establishing a PT PMA, which allows foreign ownership, subject to Indonesian regulations and sector-specific rules.

Is it hard to start a business in Bali?

Starting a business in Bali can be challenging due to the intricate legal and bureaucratic processes. Establishing a company in Bali requires a thorough understanding of local laws, investment requirements, and cultural nuances.

Can I buy a business in Bali?

Besides opening a business in Bali, foreigners can buy a business in Bali. Buying a business in Bali can be done by establishing a PT PMA, which enables foreigners to invest in and own businesses in Bali, adhering to Indonesian laws and investment guidelines.

Is starting a small business in Bali worth it?

Yes, starting a small business in Bali can be worth it, especially in sectors like tourism, wellness, and hospitality, leveraging the island’s vibrant culture and steady tourist influx. With proper planning, understanding the cost of starting a business in Bali, and navigating the legal requirements for foreigners, entrepreneurs can tap into a market full of opportunities.

Written by Matt Timmermans

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