Business in Bali: How Foreigners Can Open and Run a Company in Indonesia
Indonesian law allows foreigners to open a business in Bali and operate it. To do this, you need to register a company with foreign capital — a PT PMA. When setting it up, it is important to choose the right business activity and legal structure, and to check the activity code in the KBLI business classification in advance, since some fields are closed to new PT PMAs. A company can carry out several activities and, accordingly, hold several KBLI codes. In Bali, the province's own restrictions now apply on top of the national rules. Below is how to open a business in Bali: which activities are available to foreigners, how much capital you need and what obligations come after registration.
Can a Foreigner Do Business in Bali?
Yes, foreigners can do business in Indonesia — invest in and own a share of an Indonesian company, up to 100%. Reports that foreigners have been banned from doing business in Bali are only partly true.
In 2026, the Bali authorities restricted foreign companies' access to a number of sectors to protect local small businesses. Since the third week of May 2026, foreign companies in Bali cannot submit new permit applications for 18 business activities through OSS, the government's business registration system (Bali government release). No end date has been set: the restriction applies until the authorities decide otherwise. Companies that already hold permits under these codes must still submit the LKPM investment report.
Accommodation and real estate
Star-rated hotels under 6000 m² — KBLI 55110
«melati» hotels (small guesthouses) under 6000 m² — KBLI 55120
Other accommodation — KBLI 55900
Owned or leased real estate — KBLI 68111
Consulting
Other management consulting — KBLI 70209
Industrial management consulting — KBLI 70204
Vehicle rental
Rental of cars, buses and trucks — KBLI 77100
Motorcycle rental — KBLI 77311
Retail
Retail sale of clothing — KBLI 47711
Retail sale of textiles — KBLI 47511
Retail sale of other food products — KBLI 47249
Street vending of food made from farm produce — KBLI 47991
Food and beverage
Cafés and drinks venues — KBLI 56303
Venues serving traditional jamu drinks — KBLI 56305
Services and sports
Made-to-measure tailoring — KBLI 14120
Stadiums — KBLI 93111
Fitness centres — KBLI 93116
Sports event promoters — KBLI 93191
The codes follow the KBLI 2020 classification, and the activity names follow the Bali government's announcement. In KBLI 2025, which is now in force, some numbers have changed or now refer to different activities, so when checking a code in OSS, compare its description, not just its number.
What Business to Open in Bali?
These are the activities foreigners choose most often:
property and tourist facility management;
hospitality;
consulting;
IT and digital services;
trade;
education.
Once you have chosen your business niche, you need to find the KBLI code for it and check whether a foreign investor is allowed to carry out that activity.
In practice, OSS checks on foreign companies in Bali have also become stricter for other activities, especially low- and medium-low-risk ones. A KBLI code can pass the initial check and still fail to be approved at the final stage of registration. The outcome cannot be predicted in advance — the system makes the decision at the moment of submission.
That is why, before registration, we work out a main option and a fallback option together with the client. If the system does not approve the main code, we switch to the fallback: a different code or registering the project address in another region of Indonesia.
Business area | What to check |
Villa rental and tourist accommodation | This area needs particularly careful checking. Whether foreign participation is possible depends on the actual business model and the applicable licences. Before choosing this niche, you need to check the restrictions in OSS and the requirements for the specific property. |
Restaurant or café | New applications from PT PMAs are not accepted for cafés. Restaurants are not on the list of restricted activities, but the difference between a café and a restaurant is determined by the KBLI code: a café is code 56303 under KBLI 2020, which is on the restricted list; a restaurant is code 56101 under KBLI 2020, which is not. Check in OSS in advance. |
Tourism services | Whether foreign participation is permitted, and sector licences |
Consulting and professional services | Restrictions on the specific KBLI code |
IT and digital services | Whether the actual activity matches the KBLI code, and licensing requirements |
The risk: registering a company with the wrong KBLI code and then discovering that the licence you need cannot be obtained. Another scenario is drawing up a business plan for a sector that is restricted for foreigners in Bali.
An idea like "opening a small café", "renting out a villa to tourists by the night" or "running a scooter rental" may turn out to be unavailable, or may require a more complex PT PMA legal structure.
Planning a business in Bali should start with finding out which of the activities permitted to foreigners suits you. Only then should you write a business plan and carry out a full analysis: choosing KBLI codes, the place of business and the foreign owner's status.
Foreign Business in Indonesia: PT PMA and Alternatives
For foreigners, the main form is the PT PMA: we cover it in detail in our article on PT PMA foreign investment companies. If you only plan to represent a foreign company's interests in Indonesia, registering a representative office is enough. If a foreign national becomes a shareholder in a regular Indonesian PT, the company's status changes to PT PMA.
Setting up a PT in the name of a nominal Indonesian owner is illegal and has legal and financial consequences for everyone involved.
Form | For foreigners | Purpose |
PT PMA | Yes | A full business with foreign capital |
PT PMDN | No | A business with Indonesian capital |
Representative office | Limited | Representing interests and other permitted functions |
How to Open a Company in Indonesia: Steps, Capital, Timeframes
We have covered all the basic steps of company registration in a separate guide; here are the essentials.
Defining the Business Activity and Choosing KBLI Codes
First, you need to check how viable your business model is. Write a detailed description of exactly what your company plans to do. Then choose one or more suitable KBLI codes. The KBLI 2025 classification is now in force: government systems were required to switch to it no later than 18 June 2026. If only the code number for an activity has changed, the AHU and OSS systems will update it automatically. If the company changes or expands its activities, the articles of association will need to be amended by a notary.
Before opening a business, it is important to check several points at once:
whether the chosen activity is permitted for a PT PMA in the specific Indonesian province;
what the foreign ownership requirements are for these KBLI codes and whether there are restrictions;
which licences each code will require;
whether the company's address is suitable for the chosen activity.
Licences are issued after you receive the NIB business registration number.
Defining the Company Structure: Owners and Management
The shareholders of a PT PMA can be foreign and local individuals and/or legal entities. For some KBLI codes the law allows 100% foreign ownership, but the company must have at least 2 co-owners. The company is run by a director and a commissioner — these are different roles: the director manages the company and the commissioner supervises the director, so in practice they are always different people. For example, the simplest structure might look like this: one foreigner holds 50% of the shares and is the director, another foreigner holds 50% of the shares and is the commissioner. If both plan to obtain an investor KITAS — a residence permit for investors — each one's share must be at least 10 billion rupiah, meaning the company's capital starts at 20 billion. For foreigners to hold these positions, the corresponding status must be arranged with the immigration service.
Calculating the Required Investment
Investment requirements for a foreign company in Indonesia are set by two separate parameters: total investment value and paid-up capital. Since 2 October 2025, under Regulation of the Ministry of Investment No. 5/2025, the minimum paid-up capital of a PT PMA is 2.5 billion rupiah per company, regardless of how many KBLI codes are registered. The amount must be deposited into the company's bank account. The capital must stay in the company's account for 12 months. It may only be spent on assets, construction and the company's operations.
The total investment of a PT PMA, including paid-up capital, must exceed 10 billion rupiah per KBLI code and per location. For food and beverage, the 10 billion is calculated across all food and beverage codes in one city or regency, not per code. For wholesale trade and construction, it is calculated per group of related codes. For most activities, the 10 billion rupiah threshold is calculated excluding the value of land and buildings. For real estate, accommodation, agriculture, plantations, livestock farming and aquaculture, land and buildings are included in the calculation.
A brief outline of how paid-up capital is deposited: the PT PMA is established — a corporate account is opened — the shareholders transfer a combined 2.5 billion rupiah from their own accounts to the company's account. We recommend stating in the payment reference that this is a capital contribution, and keeping bank statements and other payment documents that confirm the movement of funds. After that, the funds are used for the business.
Preparing the Company Name and Documents for Incorporation
To set up a PT PMA, you need information on the shareholders, director, commissioner, company address, business activities and the structure of the authorised capital. The founding documents are drawn up by a notary, after which the company receives legal entity status in the Ministry of Law system. If the founders and/or managers are foreigners, their passports and other details will be needed.
What to prepare before visiting the notary:
who will be a shareholder and how the shares will be divided;
who will be the director and the commissioner;
which business activities and KBLI codes are needed;
where the company will be located and where the business will actually operate.
NIB and Bank Account
Once the legal entity has been created, its details are entered into OSS and the company is assigned an NIB number. The company then goes through corporate bank account opening, and the investment capital is transferred to that account. Next, you need to confirm the basic requirements and obtain licences and other necessary permits — these are issued in line with OSS requirements. A restaurant, for example, may need additional documents for the premises, sanitation, food products, alcohol, signage and waste. For low-risk activities, the NIB also serves as the permit. Medium-risk activities additionally require a standards compliance certificate, and high-risk activities require a licence. So the NIB is not the final stage of the launch but one of the first steps.
Licences
Exactly which permits you will need depends on the KBLI code, the risk level of the activity and the specifics of your business. In every case you start with the NIB, then check in OSS what else is required. For example, we have covered restaurant licensing in Bali in a separate article.
Business activity | Main licences and permits |
Software development and IT services | If you launch a digital service (an app or an online platform), it must be registered in the PSE electronic systems register. Depending on the service, other permits may also be needed. |
Educational consulting and related services | Depends on the type of service; for some, an NIB is enough |
Professional services (except those restricted for foreigners) | Licences and certificates according to the KBLI code |
Launch
Accounting, tax reporting and internal documents are set up; staff are hired, and immigration documents are arranged for the owner and foreign employees to live in Indonesia. For the first steps after registration, see our article on what needs to be done after opening a company in Indonesia.
Cost and Timeframes
PT PMA registration with Legal Indonesia starts from 31 million rupiah, with 2 KBLI codes included in the price. The process usually takes about 3–4 weeks: the timing depends on the company structure, the number of KBLI codes, the notary's work, the licences required, the address and banking support. Write to us — we will assess your situation, structure and KBLI codes and calculate the cost and timeframe for your case.
When comparing "turnkey" offers, find out exactly what is included in the price: notary, OSS, NIB, tax registration, licences, registered address, accounting.
Visa and KITAS
A company owner can apply for an investor KITAS (E28A). It is issued to foreign shareholders with a personal stake in a PT PMA of at least 10 billion rupiah. So match your business activity, ownership structure, the size of your personal investment and your position in advance. It is valid for 1–2 years and can be extended.
It is also important to distinguish between the status of a shareholder, an investor, a director and a foreign employee. Holding a share in a company does not automatically give you the right to work in Indonesia in any position.
If your share in the company is below the threshold, the alternative is a work KITAS (E23), under which the foreigner is employed by the PT PMA in which they are a shareholder and/or employee. You will find answers to frequently asked questions about KITAS for company owners in our Q&A article.
Taxes and Reporting
Once the company is open, tax obligations become part of the daily routine. The company must keep accounts and submit reports even if the business has not yet started making a profit. You can hand accounting and reporting over to us — read more about our accounting and tax support for companies.
Which taxes a company pays in Indonesia:
Since 22 April 2026, the preferential 0.5% turnover rate (for turnover of up to 4.8 billion rupiah a year) can only be used by sole proprietors, cooperatives and PT Perorangan — Indonesian single-owner companies. New regular PTs, including PT PMAs, pay corporate income tax at the standard rate.
Corporate income tax is 22% of taxable profit; reliefs and special regimes may apply: a company with turnover of up to 50 billion rupiah pays half the rate on the portion of profit attributable to the first 4.8 billion of turnover. This tax also applies to PT PMAs.
VAT is 12%, but for most goods and services it is calculated on 11/12 of the price, which effectively makes it 11%. With turnover above 4.8 billion rupiah, you must register as a VAT payer.
Withholding taxes (dividends are subject to them), payroll taxes and local levies.
Accounting and reporting are mandatory even with low revenue or losses; the annual tax return is filed no later than 4 months after the end of the tax year, and a PT PMA submits the LKPM investment report every quarter.
Read more in our article Taxes in Bali.
Hiring Staff
When hiring Indonesians, you must comply with labour law and enrol them in state health and social insurance — BPJS Kesehatan and BPJS Ketenagakerjaan. When hiring a foreign employee, you first need to make sure the position is open to foreigners and that their qualifications match the company's business activity. After that, work and immigration documents are obtained. Foreigners who work in Indonesia for at least six months are also required to take part in both programmes — BPJS Kesehatan and BPJS Ketenagakerjaan. HR positions — personnel management, recruitment, HR administration — are closed to foreigners. Read more about hiring and HR administration in the description of our HR services for businesses in Indonesia.
Risks and Common Mistakes
We have looked in detail at whether it is safe for foreigners to start a business in Indonesia; here we list the main mistakes.
A nominee owner. One person is named in the documents, while the business is actually run by someone else. Article 33 of Investment Law No. 25/2007 prohibits agreements under which one person's shares are held in another person's name. Such agreements are null and void.
The wrong KBLI code. For example, the documents say consulting, but the actual business is property management. This leads to problems with licences and tax audits.
The company exists, but no business is being done. Even so, the investment requirements, tax obligations and reporting must be met in full.
Dependence on an intermediary. The owner should personally have access to all documents, OSS, the bank account and tax data, rather than relying on third parties.
Ignoring new rules. Arrangements that worked a few years ago may not be available to a new PT PMA.
A virtual address. A virtual office is not suitable for every business activity. In Bali, the authorities have stepped up checks on foreign companies with a virtual address, so it is safer for the registered address to match the place where the business actually operates.
Not filing LKPM. A PT PMA submits LKPM every quarter, by the 15th of the month following the quarter, even if there is no revenue. If two reports in a row are missed, warnings follow, then suspension of activities with a fine, then revocation of the licence.
Withdrawing capital and incomplete investment. If paid-up capital is withdrawn before 12 months have passed or the investment plan is not carried out, the company faces sanctions. It is important not only to state an investment plan of more than 10 billion rupiah in OSS at registration, but also to carry it out on time.
"Turnkey" visas with promised results. Some unscrupulous agents obtain investor visas using forged documents. Check which documents your application is based on, and keep copies of everything you sign.
FAQ
Yes, through a company with foreign capital, a PT PMA: foreigners can own up to 100% of the shares. The restrictions concern business activities, not foreigners as such: since May 2026, new PT PMAs in Bali have not been granted permits for 18 business activities. So before registering, it is important to check whether the activity you need is open.
A PT PMA is an Indonesian company with foreign capital that allows foreigners to do business in Indonesia. It can be wholly foreign-owned if its business activity is open to foreign capital. It needs at least two founders, and the company must also deposit paid-up capital and carry out its investment plan. Read more in our article on the PT PMA company.
No, not always. It all depends on what the person plans to do: invest, own a company, work as an employee or simply live in Indonesia. The type of business and the immigration status must match the actual activity.
In some cases other formats will work, but a full business with foreign investment requires a PT PMA.
Often yes, but at the moment no one can promise in advance how a specific code will turn out. In addition to the official list of 18 business activities, OSS in Bali checks applications from foreign companies more strictly, and a code may fail at the final stage. We check your business activity in advance, choose a main and a fallback code, and explain before payment what will happen if the main one is not approved.
Most of the steps can be completed remotely, through an authorised representative. However, the director opens the company's bank account in person at the bank. Write to us — we will tell you what can be done in your case.
At least 2.5 billion rupiah must be deposited into the company's account. The total investment plan must exceed 10 billion per business activity and location. For an investor KITAS, each shareholder's stake must be at least 10 billion.
PT PMA registration usually takes about 3–4 weeks, but the timing depends on the chosen KBLI codes, how complex the documents are to prepare, OSS requirements, the address and any additional licences. For more answers, see our Q&A on the company registration process and obtaining a KITAS.
Want to Open a Business in Bali?
Write to us: we will check your business activity against the current restrictions, choose a main and a fallback KBLI code, and help with PT PMA registration, licences, visas, accounting and hiring.
