Bali's Trusted Visa & Immigration Specialists
Bali's Trusted Visa & Immigration Specialists
Company Setup Bali
Foreign Business Guide
Quick answer
Setting up a company in Indonesia (PT PMA — Perseroan Terbatas Penanaman Modal Asing) requires minimum IDR 10 billion authorized capital with IDR 2.5 billion paid-up. The process takes 4-8 weeks through OSS (Online Single Submission) and involves company deed, Ministry of Law approval, tax registration (NPWP), business licenses (NIB), and bank account setup. Cost through an agent: IDR 25,000,000-50,000,000…
Overview
PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the standard corporate structure for foreign-owned businesses in Indonesia. It allows 100% foreign ownership in most business sectors (per the positive investment list) and is the foundation for sponsoring work permits, opening corporate bank accounts, and operating legally in Indonesia. For entrepreneurs looking to do business in Bali, the PT PMA is almost always the recommended structure.
The capital requirements may seem high, but this is the stated authorized capital — the actual cash deposit required is the paid-up portion (IDR 2.5 billion or approximately USD 160,000).
Requirements
Establishing a PT PMA requires: minimum 2 shareholders (can be individuals or companies), minimum 1 director and 1 commissioner, registered office address in Indonesia, minimum authorized capital IDR 10 billion, minimum paid-up capital IDR 2.5 billion (must be deposited), a business activity that is open to foreign investment per the positive list, and company articles of association (deed). The capital requirements may seem high, but this is the stated authorized capital — the actual cash deposit required is the paid-up portion (IDR 2.5 billion or approximately USD 160,000).
Guide
Step 1: Company deed notarization with an Indonesian notary. Step 2: Ministry of Law and Human Rights approval (AHU). Step 3: OSS (Online Single Submission) registration for NIB (business identification number). Step 4: Tax registration (NPWP and PKP if applicable). Step 5: Company bank account opening. Step 6: Business licensing (specific to your sector). Step 7: Virtual or physical office setup. Our team handles all 7 steps, typically completing the process in 4-8 weeks.
Since the implementation of the Positive Investment List (replacing the old Negative Investment List), most sectors are now open to 100% foreign ownership.
Guide
Since the implementation of the Positive Investment List (replacing the old Negative Investment List), most sectors are now open to 100% foreign ownership. Key sectors for Bali entrepreneurs include tourism & hospitality, consulting services, IT & software development, trading & distribution, food & beverage, education, health & wellness, and construction. Some sectors have foreign ownership caps or require Indonesian partners — contact us for specific sector guidance.
Through our agency: Company establishment IDR 25,000,000-50,000,000 (includes notary, AHU, OSS, NPWP, bank account opening, business licenses).
Costs
Through our agency: Company establishment IDR 25,000,000-50,000,000 (includes notary, AHU, OSS, NPWP, bank account opening, business licenses). Annual maintenance IDR 5,000,000-10,000,000 (accounting, tax filing, annual reporting). Work permit for director IDR 15,000,000-20,000,000 (RPTKA, IMTA, KITAS). Virtual office IDR 5,000,000-15,000,000/year. See our pricing page for complete details.
In depth
Establishing a company in Bali requires navigating Indonesia's business registration system, which has been significantly streamlined through the Online Single Submission (OSS) platform. Foreign nationals can establish a PT PMA (Penanaman Modal Asing) — a foreign-owned limited liability company — that allows them to legally operate a business, hire employees, and sponsor their own work permit and KITAS.
The process involves several government agencies including the Ministry of Investment (BKPM), the Ministry of Law and Human Rights (Kemenkumham), and local government offices. While the bureaucratic landscape has improved dramatically, professional guidance remains essential to ensure compliance with all regulatory requirements and to avoid costly mistakes.
Step 1 — Business Plan and Classification: Define your business activities using Indonesia's KBLI (Standard Industrial Classification) codes. Each business activity must have an assigned KBLI code, and the codes determine which licenses are required and whether foreign ownership restrictions apply.
Step 2 — Company Name Reservation: Reserve your company name through the Kemenkumham online system (AHU Online). The name must be unique, written in Latin characters, and contain at least three words. Name reservation is valid for 60 days.
Step 3 — Notarial Deed of Establishment: Engage an Indonesian notary to draft the Articles of Association (Akta Pendirian). This legal document establishes the company's structure, capitalization, shareholder composition, director and commissioner appointments, and business purpose.
Step 4 — Legal Entity Approval: Submit the notarial deed to Kemenkumham for legal entity approval (SK Kemenkumham). This confirms the company as a legally recognized entity in Indonesia.
Step 5 — OSS Registration: Register the company through the Online Single Submission system to obtain the NIB (Nomor Induk Berusaha / Business Identification Number). The NIB serves as your company's primary business license and replaces several previously separate permits.
Step 6 — Tax Registration: Obtain an NPWP (Taxpayer Identification Number) from the local tax office. This is required for all business activities, bank account opening, and government reporting.
Step 7 — Bank Account Opening: Open a corporate bank account and deposit the minimum paid-up capital. The bank will issue a capital deposit confirmation letter needed for investment reporting.
Step 8 — Domicile Letter: Obtain a business domicile letter (SKDP or equivalent) from the local government confirming your business address in Bali.
Indonesia's Positive Investment List (previously the Negative Investment List) classifies business sectors by their openness to foreign investment. Many sectors now allow 100% foreign ownership, while others have varying levels of restriction. Key sectors popular with foreign investors in Bali include tourism and hospitality (100% foreign ownership allowed for large investments), restaurants and food service, creative industries and digital services, education, health and wellness, and property development through appropriate structures.
FAQ
In most sectors, yes. The Positive Investment List allows 100% foreign ownership for most business activities. Some sectors require Indonesian partnership. Our team advises on your specific sector.
The minimum stated authorized capital is IDR 10 billion with IDR 2.5 billion paid-up. However, the actual cash deposit requirement depends on your business sector and licensing. Some service-based businesses can start with lower effective capital. Consult our team for your specific situation.
Standard processing: 4-8 weeks from document submission to fully operational company. Express processing: 3-4 weeks for urgent cases (additional fees apply).
No. Indonesian law requires a minimum of 2 shareholders for a PT. However, one shareholder can hold 99% and the other 1%, giving effective sole control.
At least one director should have a KITAS and be based in Indonesia. Other shareholders can be overseas. We can help structure your company to meet these requirements.
Indonesian corporate tax is 22% on taxable income. Small businesses (under IDR 4.8 billion annual revenue) may qualify for reduced rates. VAT is 11%. See our tax services guide for details.
With professional assistance, a PT PMA can be established in approximately 4-8 weeks from document preparation to full operational readiness. This includes notarial deed preparation (1-2 weeks), Kemenkumham approval (1-2 weeks), OSS registration (1-2 weeks), and bank account opening and capital deposit (1-2 weeks).
Foreign nationals cannot legally operate a business in Indonesia without a proper business entity and visa. Even small-scale activities such as freelancing, consulting, or online businesses technically require legal authorization. A PT PMA is the safest and most comprehensive structure for any foreign business activity.
PT PMA companies must file monthly and annual tax returns, submit an annual LKPM (Investment Activity Report) to BKPM, maintain proper accounting records, and comply with employment regulations for any hired staff. Our team offers ongoing compliance management services to ensure your company remains in good standing.
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Our experienced team handles the entire company setup process. Contact us for a free consultation. 💬 Chat on WhatsApp