The quick guide to setting up a business in Bali
Starting a business in Bali has been a dream for many – living in paradise while earning a steady stream of profit. We all know that Bali has always been a popular tourist destination. Over the last few years, it has also become attractive for people looking to register a business in Bali.
Why? As well as the scenery, sun, sea, sand, weather and food, there is also a lower cost of living on the island.
While it’s not the hardest thing to do, setting up a new business in Bali as a foreigner can be tricky. There are a lot of legalities involved. Therefore, we are going to walk you through a brief and to the point step-by-step guide to setting up a business in Bali.
Research
Before you pack up your bags and leave everything behind, you need to do a lot of research. Take a trip to Bali and spend some time thinking about the type of business you want to set up and one that would have the best chance of being successful.
Find a Local Business to Help with the Paperwork and Documentation
You need work permits, visas and visa extensions to live and work with your own business in Bali. Therefore, it’s also advised that you seek out a local law firm, consultancy group or business set-up specialist who will help you prepare and submit all the necessary applications and documentation.
Setting Up the Business
It is best to open an Indonesian bank account if you intend to work and run a business there. If you have a consultant or other professional in place, as outlined above, you need to seek their help in applying for a company license – one that is suitable for the type of business you are looking to setup.
You then need to apply to set up a PMA, which stands for Penanaman Modal Asing, which means your business is a foreign direct investment company that allows 100% foreign ownership, but with a limited level of liability as determined by company law in Indonesia.
As businesses operating in Indonesia are either owned by foreigners or nationals it doesn’t matter whether you have a small, medium or large business, you need a PMA to have the highest level of protection on your interest.
The important documents for the applications need to be overseen and prepared with the help of your consultant in Indonesian and English.
Negotiate a Fee
When you are hiring a specialist to help you establish your business, it’s also important you confirm whether they can help with the following documents and permits:
- Locality license
- BPKM application
- SITU and HO
- Company license through the TDP
- Environmental Management Certificate
- Company Tax Number
- Company Locality Letter
- Company Business License Letter
- AKTA notary with approval from the Minister of Justice
Make sure you follow this checklist of items so that you’ll not run into other problems at a later stage of business incorporation. You may be able to negotiate on their quoted fee for carrying out the above work for you, especially if you are going to pay them upfront.
What Your Facilitator / Consultant Needs
The consultant / facilitator helping to establish your business will need the following:
- Proposed company name and at least one alternative
- Company description
- Company location
- An overseas address that can be verified
- Copy of Passports for you and the director
- Shareholder agreement (signed) for you and a maximum of 6 directors.
Organizing a Visa
You need to secure either a business visit visa or a working and residence visa, while you are establishing your company. Although you can enter the island with a tourist visa, you are only able to stay on that for a total of 30 days and a business visit visa lasts for only 60 days.
Get started with setting up your business in Bali today
Bali attracts an abundance of local and foreign customers and is a fertile launchpad as a gorgeous Indonesian archipelago for entrepreneurs around the world. If you’ve decided to become a resident Bali entrepreneur, keep in mind this quick guide when setting up a business in Bali.
