FAQ (Frequently Asked Questions)

Yes, Bali allows foreigners to own businesses. Creating a Limited Liability corporation is the finest option to run a business in Bali (PMA).

In Bali, you can establish businesses in a huge variety of industries. Examples include real estate, textiles, travel, dining, technology, and entertainment. Ask us for additional information.

Bali offers great opportunities to foreign investors due to the country’s large and young population, rising consumption, abundant natural resources, and cheap labor. Therefore, each year foreign direct investment (FDI) realization in Indonesia tends to grow.

Before starting a business in Bali, you need to be aware of these crucial factors. First is you need to do market research, then plan your business concepts while getting ready the resources you might need. And afterwards, you need to apply for the proper business license of the business you are starting.

Yes,  foreigners are permitted to do businesses legally in Bali.

As Bali is part of Indonesia, you have a wide range of business opportunities. A limited liability company, or PMA, is the first. The Ministry of Justice must give its approval before PMA can be founded with foreign shareholders, Indonesian partners in a joint venture, or Indonesian shareholders entirely owning the company. If the proposed investment does not require a local legal company, you may choose to designate an agent or distributor or establish a representative office.

Everything hinges on you. Do you wish to investigate business opportunities in Indonesia or do you intend to make money and profit here? You require a PMA if you want to conduct direct business in Bali. Establishing a representative office, which you can later transform into a PMA when your firm is expanding, is preferable if all you want is for your existing company to expand here without engaging in commercial activities. When first entering the Indonesian market, many foreign investors opt to establish an agency agreement or a representative office. Later, as their business begins to expand, they will then submit an application for a foreign direct investment company (FDI).

PMA is the legal entity through which a foreign investor can conduct commercial activities in Indonesia. The establishment of a PMA is regulated by Law No. 40/2007 regarding Limited Liability Companies (Company Law). Such a company can be either 100 percent foreign-owned. To find out what kind of sectors are open to foreign investment you need to access the Negative Investment List, which is made by the Indonesia Investment Coordinating Board (BKPM).

The minimum paid-up capital for incorporating a PMA must be over IDR 10 Billion. However, this amount does not have to be in the form of a cash deposit. Business assets can be shown as Investments, except land and buildings. For Real estate businesses, land and buildings can be shown as investments. The owner of the company must comply with Indonesian law and is considered an Indonesian company. The company can subsequently be changed or sold to the shareholders, foreigners or Indonesian.

To set up a PMA. you will need a minimum of 2 shareholders. Shareholders can be foreign nationals or foreign entities in the case of a PMA, depending on the scope of business.

There are 2 stages of incorporation, the first stage involves the legal deeds and obtaining trading licenses, this can be completed in around 8 weeks once you have a suitable office (with a building permit that allows for the type of business you would like to run). The second stage involves obtaining the relevant local licenses from the regency your company will be domiciled in, and it can also sponsor working permits for expatriates.

The Indonesia Investment Coordinating Board (BKPM), which is the Indonesian government’s investment service agency and handles foreign investment, is who you deal with if you wish to start a foreign firm in Indonesia. A foreigner who is unfamiliar with Indonesia and the language and culture may find it challenging to timely and smoothly secure all permits. Most foreign investors prefer to use a local company’s services to handle all processes at the BKPM and other institutions in order to prevent issues. Trustworks can assist you in taking all the necessary actions so the foreign investor only needs to provide us with the required paperwork.

The ideal approach for a foreign firm or foreign individual to launch their business in Indonesia right away is through a PMA. It guarantees that the investor has comprehensive and safe access to the company’s management. However, there is another option, which is by opening a Representative office or KPPA.

KPPA stands for Kantor Perwakilan Perusahaan Asing or Foreign Company Representative Office. KPPA is an entity established by a foreign party with the aim of managing its business activation in Indonesia. In addition, KPPA also functions in preparing for the establishment of a PT PMA. KPPA must be established in the provincial capital, e.g. Jakarta, Bandung, Surabaya, Denpasar, etc.

None. However, KPPA is prohibited from conducting business or generating profit. Form a PMA instead if you want to gain revenue in Indonesia.