Bali remains a popular destination not only for tourists and freelancers but also for those considering starting their own business on the island. However, in 2025, concerns about legality and inspections by the authorities trouble more and more expats. So, how safe is it to open a business in Bali now?
Increased Scrutiny: What to Be Wary Of
Since the beginning of the year, immigration services, the labor department, and the BPKM investment department have intensified inspections. The main focus is on companies registered solely to obtain residency permits (KITAS) rather than conducting real business. Such entities often perform no activities, pay no taxes, and serve merely as formal cover.
If violations are found, the business can be closed, and the owners deported or fined.
A Legitimate Business Has Nothing to Worry About
If you plan to genuinely engage in entrepreneurial activities, hire employees, pay taxes, and abide by local laws, there's nothing to fear. The authorities support business development, especially if it creates jobs and contributes to the island's economy.
Here are some factors that increase the chances of a successful and safe start:
- properly executed legal documents (PT PMA);
- capital contribution and fulfillment of investment obligations in line with the stated business plan;
- actual investments in Indonesia's economy (equipment, offices, personnel, etc.);
- transparent financial activities;
- timely submission of reports and payment of taxes;
- employment of local staff under official labor contracts;
- existence of a real office, studio, or other physical space.
Yes, inspections really do occur — primarily targeting fake companies. However, in practice, legitimate businesses also sometimes attract the attention of regulatory bodies. Therefore, it is especially important to set up operations initially in a transparent manner and in compliance with local requirements. If you are creating a legitimate, open, and beneficial project for the Indonesian market, Bali remains an excellent place for launching and growth. Companies that entrusted us with registration and reporting confirm that they conduct their activities smoothly and without issues from the controlling authorities.
Don't open a business just "for the sake of it" — open it for development. Then the island will become an opportunity, not a threat.
Need help? We've got it all organized:
- we will set up a company (PT PMA) tailored to your goals;
- register all documents and obtain licenses;
- establish accounting and tax management;
- assist with hiring people and official arrangements.
Write to us, and we'll handle all the routine tasks so that you can focus on the main thing: developing a business on the island of dreams.
Telegram - @legalindonesia / @LegalIndonesiaBot
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