A Basic Guide to Establishing a Company in Bali

If you plan to start your own business in Bali, you will need to register a company with a PT PMA license (Penanaman Modal Asing).

This is a complex process that, depending on your business activity, requires a significant amount of time and money and involves several mandatory requirements.

This article provides some basic information regarding the steps involved in opening a PT PMA.

1. Company Name  

According to Indonesian law, the company name must be unique and composed of three English or Indonesian words. The terms "company" or "corporation" are not considered as part of the name. Each word must be at least 3 letters long and without punctuation marks. Approval of the company name requires the services of a notary who has access to the online system for name checks.

If the name does not comply with Indonesian law or resembles another company's name, the application may be rejected.

2. Shareholders, Director, and Commissioner  

For a PT PMA, at least two shareholders are required, who can be individuals or legal entities. Shareholders can act as directors and commissioners of the PT PMA. Alternatively, shareholders can appoint other individuals to these roles, including Indonesian citizens.  

A PT PMA can be fully or partially owned by foreigners with the involvement of an Indonesian citizen. The company director must reside in Indonesia. Foreign directors must obtain a tax identification number (NPWP) and a limited stay permit (KITAS).

3. Shareholder Stakes  

To qualify for an investor KITAS, an entrepreneur's share in the authorized capital must be at least 10 billion IDR. The required amount of authorized capital may vary depending on the industry. Foreign investors must transfer this capital to a bank account in Indonesia.

4. Company Legal Address  

The company must be registered at a non-residential address. If you use your own premises, you will need to provide:

   - The building address on Google Maps

   - Photos of the building

   - Lease agreement

   - Land certificate

   - Building permit (IMB)

You can opt for a virtual office if your business activities permit it.

Our agency can help you find suitable office space and handle the lease agreement process if required. Additionally, we offer virtual office services for company registration.

5. Description of Company Activities (KBLI - Klasifikasi Baku Lapangan Usaha Indonesia)  

You can list up to 5 types of activities.  

We recommend concentrating on a single type of activity to avoid higher investment requirements. For example, having 2 KBLI codes increases investment obligations to 20 billion rupiahs.  

The classifier is published on the OSS agency’s website. Choosing the correct code is crucial to maximize allowable ownership percentage, so consulting specialists is advisable.  

You can modify your list of activities in the future, subject to an additional fee.

Once all the data is provided, the following procedures need to be completed:

1. Creating a Legal Entity  

Initially, all information must be included in the founding agreement, specifying the types of activities, notarized by a local notary, and approved by the Ministry of Law and Human Rights.

2. Tax Registration  

The next step involves obtaining a tax identification number (NPWP) and a certificate of registration from the local tax office.

3. Obtaining a Business Registration Number (NIB)  

In the third stage, you must register the company in the OSS (One Single Submission) system. Upon completing the form, you will receive an NIB number (Nomor Induk Berusaha).

4. Obtaining Commercial Licenses  

Each type of business activity requires a specific license. This process is typically straightforward, but activities with higher risk profiles may necessitate more time, resources, and adherence to additional regulatory requirements.

The registration process for a PT PMA company typically spans between 2 weeks and 2 months. Once your company is established, you can:

- Conduct business legally and generate income in Bali

- Employ staff

- Open bank accounts

- Apply for an investor KITAS, followed by family KITAS visas for immediate family members

- Secure local health insurance

Starting a business in Bali is straightforward and can be managed remotely, even from outside Indonesia. The key is to ensure compliance with all regulatory requirements.

For consultation, feel free to reach out to us at:

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