Can Foreigners Own Business in Bali?

March 5, 2025

Legal Requirements & Process to Establish a PT PMA Company

Bali is a dream destination for many, but can foreigners own a business in Bali? The short answer is yes, but if you ask us on a deeper level, there are specific rules and regulations to follow for legally owning a business in Indonesia.

“Is the process hard?”

“How much investment is required to start a foreign-owned company?”

“How long does it take to run the business legally?”

If these questions are on your mind, you’re in the right place! Keep reading as we break it all down for you.

How to Register a Business in Bali as a Foreigner

The right and legal way to register a business in Bali as a foreigner is by establishing a PT PMA Company. But first, you need to check if your business sector is allowed as detailed in the Indonesian Negative Investment List (Daftar Negatif Investasi).

Check your business sector here → A Guide to Indonesia’s Negative Investment List

Once the business sector has been confirmed as permissible, the next step is to prepare. Here are three essential preparations you need to make:

IDR 10 Billion as Capital Investment
The amount of money (approximately USD 670,000) is the minimum authorized capital set by the Indonesian government, that you need to establish a PT PMA.
Two Shareholders in the PT PMA
A PT PMA requires at least two shareholders, one as the Director and the other one as the Commissioner.
Legal Requirements to Register
Paperwork such as a copy of passport, business plan, company address, etc.

Bali as an Investment Destination

Over the years, Bali has evolved into a thriving business hub, attracting entrepreneurs and investors from all over the world. But what makes Bali such a lucrative place for business, even after all these years?

Here are some factors:

Processing PT PMA With a Local Business Consultant

Processing the establishment of PT PMA in Bali involves navigating complex regulations, legal paperwork, and compliance requirements. On average, the entire PT PMA establishment process takes 4 to 6 weeks, depending on the Government Digital System, the business sector, licensing requirements, and the local government’s holidays. While doing it alone might seem like a way to cut costs, mistakes in the process can lead to delays, unexpected expenses, or even rejection of your business license.

Working with a local business consultant like Usaha Expat ensures your company is set up correctly from the start! Instead of wasting valuable time figuring out the system, you can focus on growing your business while experts handle the bureaucracy. In the long run, this not only protects your investment but also gives you peace of mind.

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