The biggest misconception of expats who decide to do business in Bali is that once they start a company and get an investor KITAS, they can work here. This is not really true. Similarly, many people think that you have to get a working KITAS in order to work, but it’s not that simple either.
Let’s have a look at the situation with the example of a diving instructor who has decided to teach scuba diving to tourists. In this article we will analyze the fundamental differences between the two KITAS visas – investor and work visa, and find the best option for our instructor.
Investor KITAS can be obtained by foreigners who are willing to invest money in a company registered in Indonesia and wish to manage it. In this case, a diving instructor can open a diving center in Bali.
To do this, he needs to:
- Open a PT PMA company.
- There must be a minimum of 2 founders, one of which is himself.
- The capital of the company must be a minimum of Rp 10 billion.
- The amount of issued and paid-up capital – must be at least 25%.
- Investors must own a stake of more than Rs. 1,125,000,000 invested in shares.
However, opening a company does not give him the right to work in it. With an investor KITAS, an instructor can act as a director: manage employees, set tasks, monitor implementation, sign documents, communicate with suppliers, rent new premises, organize work processes and pay salaries. He has no right to work directly with tourists. This will have to be done by employees.
Investor KITAS is a great visa option for those who want to open a business in Indonesia. Bali is one of the five most attractive investment destinations in the world according to Forbes, and registering a company here could be a good investment in your future.
Work KITAS is a visa that allows foreigners to work and get income in Indonesia. But there is a nuance here: only a person officially employed by an Indonesian company can get such a visa. So our dive instructor will not be able to get a visa to work as self-employed. To get a work permit, he would have to find an employer.
A foreigner can get a job in a foreign-invested PT-PMA company if he is not a co-founder and get a work permit.
For some professions, such as diving instructor and many others, there is another type of visa – Freelance KITAS, which allows you to officially engage in commercial activities in Indonesia without an employer. For more information about this visa, see the article Freelance KITAS: who can work as self-employed in Indonesia