Starting a Business in Bali: Step-by-Step Guide for Foreigners (2026)

Starting a business in Bali as a foreigner requires establishing a PT PMA (foreign-owned limited liability company), which is the only legal vehicle that allows non-Indonesian citizens to own and operate a business in Indonesia. The process involves company registration, licensing through the OSS-RBA system, tax registration, bank account opening, and — if you plan to work in the business — obtaining a work visa (KITAS). This guide walks through every step with current 2026 requirements.

PT PMA vs. PT Local: Which Do You Need?

| Feature | PT PMA | PT Local (PMDN) | |---------|--------|------------------| | Foreign shareholders | Yes (up to 100% in most sectors) | No | | Minimum investment plan | IDR 10 billion (~USD 625,000) | None | | Minimum paid-up capital | IDR 10 million per shareholder (~USD 625) | IDR 50 million total (~USD 3,125) | | Can sponsor foreign worker visas | Yes | No | | Foreign ownership restrictions | Varies by sector (KBLI code) | N/A | | Setup timeline | 2-4 weeks | 1-2 weeks | | Ongoing compliance | Higher (investment reporting) | Standard |

Bottom line: If you are a foreigner who wants to own, manage, or work in a business in Indonesia, you need a PT PMA. There is no legal shortcut.

Step 1: Define Your Business Activities (KBLI Codes)

KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) codes define what your company is legally permitted to do. Choosing the right codes is the most important early decision because they determine:

• Whether 100% foreign ownership is allowed
• What licenses and permits are required
• What tax incentives may apply
• What activities you can legally conduct

Popular KBLI Codes for Bali Businesses

| Business Type | KBLI Code | Foreign Ownership | |--------------|-----------|-------------------| | Restaurant/Cafe | 56101 | Up to 67% | | Accommodation/Villa rental | 55194 | Up to 67% | | Software development | 62019 | Up to 100% | | Management consulting | 70201 | Up to 100% | | Trading (export) | 46100 | Up to 100% | | Construction | 41011 | Up to 67% | | Real estate (own property) | 68111 | Up to 100% | | Digital marketing | 73101 | Up to 100% | | Fitness/Wellness | 93111 | Up to 67% | | Education/Training | 85499 | Up to 67% |

Tip: Select 3-5 KBLI codes that cover your current and anticipated future activities. Adding codes later requires a deed amendment (additional time and cost).

Step 2: Prepare Your Company Structure

Shareholders

• Minimum 2 shareholders (can be individuals or companies, Indonesian or foreign)
• Each shareholder must provide a legalized copy of their passport or company registration documents
• Define the share split (e.g., 50/50, 70/30, 99/1)

Board of Directors

• Minimum 1 director (must hold an Indonesian work visa if a foreign national)
• The director is the company's legal representative
• Can be one of the shareholders

Board of Commissioners

• Minimum 1 commissioner (supervisory role)
• Can be a foreign national (does not require a work visa)
• Cannot be the same person as the director

Capital Structure

• Authorized capital (Modal Dasar): The maximum amount of shares the company can issue. Typically set at IDR 10 billion or higher.
• Issued capital (Modal Ditempatkan): The shares actually allocated to shareholders. Must be at least 25% of authorized capital.
• Paid-up capital (Modal Disetor): The amount actually deposited. Must equal issued capital, with a minimum of IDR 10 million per shareholder.

Practical Reality

While the legal minimum paid-up capital is low, the investment plan (Rencana Investasi) submitted to OSS must total at least IDR 10 billion (~USD 625,000). This includes all projected spending: capital, equipment, operating expenses, and working capital over the company's life. You do not need IDR 10 billion in the bank on day one — but you need a credible plan for how you will deploy that amount.

For most small Bali businesses, a realistic paid-up capital of USD 50,000-70,000 is typical and sufficient for bank account opening and visa purposes.

Step 3: Notarize the Deed of Establishment

A notary prepares the company's founding deed (Akta Pendirian) containing:

• Company name (must be checked for availability — 3 name options submitted)
• Registered address in Indonesia
• Business purpose and KBLI codes
• Capital structure
• Shareholder, director, and commissioner details
• Articles of association

Timeline: 2-3 working days Cost: USD 500-1,000 (notary fees)

Step 4: Ministry of Law Approval

The notary submits the deed to the Ministry of Law and Human Rights (Kemenkumham) via the AHU Online system. Upon approval, the company receives:

• Legal entity registration number (SK Kemenkumham)
• Company number in the national registry

Timeline: 1-3 working days

Step 5: NIB Registration via OSS-RBA

With the approved deed, register on the OSS-RBA (Online Single Submission — Risk-Based Approach) system to obtain your NIB (Nomor Induk Berusaha — Business Identification Number).

The NIB serves as your:

• Business registration certificate
• Import identification number
• Customs access (if applicable)
• BPJS (social security) registration

OSS-RBA automatically classifies your business activities by risk level and determines what additional licenses you need:

| Risk Level | Requirement | |-----------|-------------| | Low | NIB only | | Medium-Low | Standard certificate (self-declaration) | | Medium-High | Standard certificate (government verification) | | High | Full license/permit required |

Timeline: 1-2 working days

Step 6: Tax Registration (NPWP)

Register for your company's NPWP (tax identification number) through the Coretax system. Required documents:

• Company deed and Kemenkumham approval
• NIB
• Director's passport and KITAS
• Office lease agreement or domicile letter

Timeline: 1-3 working days

Step 7: Open a Corporate Bank Account

This is often the most time-consuming step. Indonesian banks have strict KYC (Know Your Customer) requirements for PT PMA companies.

Common Bank Choices

| Bank | Pros | Cons | |------|------|------| | BCA | Most widely used, excellent digital banking | Strict requirements, slow onboarding | | Mandiri | Government bank, good for permits | Bureaucratic process | | CIMB Niaga | Foreigner-friendly, English support | Smaller branch network | | DBS Indonesia | International bank, fast process | Limited branch presence |

Required Documents

• Company deed and all amendments
• NIB and Kemenkumham approval
• NPWP
• Director's passport, KITAS, and NPWP
• Company domicile letter
• Board resolution authorizing account opening

Capital Deposit

Once the account is open, deposit your paid-up capital and obtain a bank confirmation letter. This letter is required for various licensing and visa applications.

Timeline: 2-5 working days (plus potential follow-up)

Step 8: Work Visa (KITAS) for Foreign Workers

If you (or other foreigners) will work in the company, you need:

RPTKA (Manpower Plan)

An approved plan from the Ministry of Manpower specifying:

• Position and job description
• Salary (minimum USD 1,200/month for most positions)
• Duration of employment
• Indonesian counterpart (pendamping) for knowledge transfer

KITAS Issuance

With the approved RPTKA:

1. Apply for a telex visa through immigration
2. Enter Indonesia (or convert from within)
3. Complete biometrics at the immigration office
4. Receive your KITAS card

Timeline: 2-4 weeks Cost: USD 1,500-3,000 (government fees plus processing)

Step 9: Hire Local Staff

Indonesian labor law has specific requirements:

Employment Contracts

• PKWTT — Permanent employment contract (no fixed end date)
• PKWT — Fixed-term contract (maximum 5 years including renewals)

Mandatory Benefits

| Benefit | Employer Contribution | |---------|---------------------| | BPJS Kesehatan (Health) | 4% of salary | | BPJS Ketenagakerjaan (JKK - Work Accident) | 0.24-1.74% of salary | | BPJS Ketenagakerjaan (JKM - Death) | 0.3% of salary | | BPJS Ketenagakerjaan (JHT - Old Age) | 3.7% of salary | | BPJS Ketenagakerjaan (JP - Pension) | 2% of salary | | THR (Religious Holiday Bonus) | 1 month salary (annual) |

Minimum Wage (UMK Badung 2026)

The minimum wage in Badung Regency (which covers most of southern Bali) is approximately IDR 3,300,000/month (~USD 206). Skilled positions typically pay IDR 5-15 million/month.

Step 10: Ongoing Compliance

Once your company is operational, you have regular compliance obligations:

Monthly

• Tax withholding (PPh 21, 23, 4(2)) filing and payment
• VAT filing (if registered as PKP)
• BPJS contributions

Quarterly

• Investment realization report (LKPM) via OSS

Annually

• Corporate tax return (SPT Badan) — due April 30
• Financial statements
• Annual general meeting of shareholders
• Company registration renewal (if applicable)

Missing these deadlines results in penalties, tax audits, and potential loss of business licenses.

Total Setup Cost Summary

| Item | Cost (USD) | |------|------------| | Notary and deed | 500 - 1,000 | | Kemenkumham approval | 200 - 300 | | NIB and OSS registration | 300 - 500 | | NPWP registration | 100 - 200 | | Bank account opening | 100 - 200 | | Legal/consulting fees | 3,000 - 5,000 | | Work visa (KITAS) | 1,500 - 3,000 | | Virtual office (annual) | 500 - 1,500 | | Total | 6,200 - 11,700 |

Plus paid-up capital deposit of USD 50,000-70,000 (this stays in your company account as working capital — it is not a fee).

Next Steps

Starting a business in Bali is straightforward when done correctly. The key is choosing the right structure from the beginning — the wrong KBLI codes, inadequate capital planning, or shortcuts like nominee structures create problems that are expensive to fix later.

Ready to start? Contact us for a free consultation. We will map your business activities to the right KBLI codes, structure your company correctly, and handle the entire registration process — typically completed within 3-4 weeks from engagement to operational company.