Is it Safe for Foreigners to Start a Business in Bali Right Now?

Bali remains a popular destination not only for tourists and freelancers, but also for those considering starting their own business on the island. However, in 2025, growing concerns about legal compliance and government inspections are making many expats wonder: is it still safe to open a business in Bali?

Increased Oversight: What to Watch Out For

Since the beginning of the year, immigration services, the labor department, and the investment department (BPKM) have intensified inspections. Their main focus is on companies that were registered solely to obtain a residence permit (KITAS) rather than to run a genuine business. These entities often conduct no actual operations, pay no taxes, and serve merely as formal cover.

If violations are found, the business can be shut down and the owners fined or deported.

A Legitimate Business Has Nothing to Worry About

If you are planning to run a real business, hire staff, pay taxes, and comply with local laws, there’s no need to worry. The government supports the development of enterprises — especially those that create jobs and contribute to the island's economy.

Here are a few key factors that increase your chances of a successful and compliant launch:

properly registered legal documents (PT PMA);
injection of share capital and fulfillment of investment obligations in accordance with the approved business plan;
actual investment into the Indonesian economy (equipment, office, staff, etc.);
transparent financial operations;
timely submission of reports and payment of taxes;
hiring local employees under official employment contracts;
presence of a physical office, studio, or other tangible space.

Yes, inspections are indeed taking place — primarily targeting fake companies. However, in practice, even fully operational and legitimate businesses may occasionally attract the attention of regulatory authorities. That’s why it’s especially important to build your operations transparently and in full compliance with local requirements from the very beginning. If you're creating a legal, open, and valuable project for the Indonesian market, Bali remains an excellent launchpad for growth and development. Companies that have entrusted us with their registration and reporting confirm that they operate smoothly and without issues from the authorities.

Don’t open a business just to get a visa — open one to grow. If you do, the island will become not a threat, but an opportunity.

Need Help? We’ve Got You Covered:

We’ll register a company (PT PMA) tailored to your goals;
Handle all paperwork and obtain necessary licenses;
Set up accounting and tax compliance;
Assist with hiring and official employee registration.