When most people think of Bali, they picture tropical getaways and cultural landmarks, but for many foreign investors, it’s also a prime location to build a thriving business. With government efforts to simplify procedures and encourage foreign ownership, setting up a company in Bali has never been more practical.
If you’re planning to establish your business in Bali in 2025, understanding the updated legal process is essential. This guide walks you through each phase—choosing the right legal entity, preparing documentation, meeting investment requirements, and more.
1. What Kind of Companies Can Foreigners Set Up in Bali?
Foreigners have several options when it comes to starting a business in Bali:
- PT PMA (Foreign-Owned Limited Liability Company): The most popular choice for international investors. Allows full foreign ownership in approved sectors, with specific capital requirements.
- Local PT (Domestic Limited Liability Company): Requires majority Indonesian ownership. Foreigners can invest as minority stakeholders.
- CV (Commanditaire Vennootschap): A local business partnership often used by smaller businesses. Foreign involvement is limited and typically informal.
- Representative Office: Best for companies looking to explore the market or manage operations without direct commercial transactions.
2. What Are the Legal Requirements in 2025?
To legally establish a company in Bali, you’ll need to comply with Indonesia’s updated corporate regulations:
- Minimum Investment Capital:
To establish a PT PMA (foreign-owned company), you are generally required to show a paid-up capital of at least IDR 10 billion (approximately USD 670,000). However, certain business sectors may permit a lower capital threshold. This investment must be deposited into an Indonesian bank account. - Company Name Guidelines:
Your chosen company name must be distinct and contain a minimum of three words. It must also meet the naming standards set by Indonesian authorities. Once finalized, the name needs to be registered through the Ministry of Law and Human Rights (MOLHR). - Business Activity Classification (KBLI):
You’ll need to choose the appropriate KBLI code (Indonesia’s standard classification for business sectors) that accurately reflects your planned operations. This classification will determine the licensing requirements and the extent of foreign ownership permitted in your sector. - Registered Business Address:
Your company must have a legitimate commercial address within Bali. This is a compulsory part of the registration process and serves as your official business location. - Shareholders and Directors Information:
You must provide detailed information about the company’s shareholders and directors. If any of them are foreign nationals, valid passport copies will also be required as part of the documentation.
3. How to Register a Company in Bali – Step-by-Step
Step 1: Reserve Your Company Name
Submit at least three options to MOLHR. Approval usually comes within a few days.
Step 2: Prepare Your Deed of Establishment
A local notary will help draft your Articles of Association, outlining your business structure and stakeholders.
Step 3: Get MOLHR Approval
The notary will submit your documents for legal entity status, resulting in a formal decree once approved.
Step 4: Secure Your Business ID Number (NIB)
Register via the OSS (Online Single Submission) system. Your NIB serves as your primary business license.
Step 5: Register for a Tax Number (NPWP)
Every business in Indonesia must register with the tax office.
Step 6: Obtain Sector-Specific Licenses
Depending on your business sector, you may need specific licenses such as:
- SIUP (Trading Business License)
- TDP (Company Registration Certificate)
- Industry-specific permits (e.g., tourism, food and beverage, import-export)
Step 7: Open a Corporate Bank Account
Deposit your initial capital and manage business transactions.
Step 8: Register for Social Security (BPJS)
Required if you’re hiring local employees. Covers both employment and health insurance programs.
4. What Documents Are Needed?
Make sure you prepare the following:
- Passport copies of all foreign stakeholders
- Company name approval letter
- Notarial deed of establishment
- MOLHR approval
- Proof of a valid Bali business address
- Capital investment statement
- NPWP (tax registration)
- Business and sector licenses (NIB, SIUP, etc.)
5. Costs and Timeframe to Expect
- Initial Setup Costs: Usually between IDR 20 – 50 million (USD 1,300 – 3,300), excluding capital requirements.
- Capital Requirements: For PT PMA, the required capital is IDR 10 billion—but you only need to inject a portion at the start.
- Processing Time: Registration takes around 5–14 business days. Additional time may be needed for bank and license approvals.
6. Common Hurdles and Helpful Advice
- Understand the Negative Investment List: Some industries restrict foreign ownership. It’s crucial to consult professionals to avoid legal roadblocks.
- Language Barrier: Official paperwork must be in Bahasa Indonesia. Professional translation or legal assistance is often necessary.
- Sector-Specific Rules: Industries like tourism or cosmetics may need extra approvals (e.g., BPOM for product registration).
- Use a Trusted Consultant: Legal firms like Bali Legals or ILA Global Consulting can simplify your journey.
7. Why Set Up a Company in Bali?
- Gateway to Southeast Asia: Bali offers strategic access to Indonesia’s broader market and neighboring countries.
- Booming Industries: Tourism, hospitality, wellness, and export/import sectors are thriving.
- Full Legal Standing: Your company can open bank accounts, hire staff, and engage in contracts.
- Investor Protection: The PT PMA model offers legal safeguards under Indonesian law.
- Simplified Licensing System: Thanks to OSS, compliance is becoming easier than ever.
8. Quick Reference Table – Company Setup in Bali (2025)
| Step | Description | Duration | Cost Estimate |
| Company Name Approval | Submit to MOLHR | 1–3 days | Included in notary |
| Notarial Deed of Establishment | Draft and notarize documents | 3–5 days | IDR 5–15 million |
| MOLHR Legal Entity Approval | Official registration | Up to 14 days | Included |
| NIB & Tax Registration | Register via OSS and tax office | 2–5 days | Included |
| Sector-Specific Licenses | Permits like SIUP or tourism licenses | Varies | IDR 5–20 million+ |
| Bank Account Setup | Corporate bank account | 3–7 days | Bank fees apply |
Final Thoughts
Setting up a company in Bali in 2025 is more streamlined than ever—but still requires careful attention to detail. Whether you’re diving into tourism, retail, or professional services, a registered company ensures legal operations and long-term success.
By preparing the right documents, understanding the legal framework, and getting support from professionals, you’ll be well on your way to launching your dream business in one of the world’s most inspiring destinations.
Ready to take the next step in Bali? Start your company registration today and join the island’s thriving business landscape!
