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Company Registration in Bali

Company Registration in Bali: Guide to Setting Up Your PT PMA

Bali has become an attractive destination for entrepreneurs and investors for decades. Whether you’re looking to open a restaurant, start a tech company, or invest in real estate, understanding the process of company registration in Bali is crucial. This guide will walk you through everything you need to set up a PT PMA (Penanaman Modal Asing), the most common business entity for foreign investors. 

What is a PT PMA?

PT PMA stands for “Perseroan Terbatas Penanaman Modal Asing,” which translates to a Limited Liability Company with Foreign Direct Investment. This type of company allows foreign investors to establish a business presence in Indonesia and operate legally.

Benefits of Establishing a PT PMA in Bali

  • Full Ownership: Foreign investors can own up to 100% of the company, depending on the business sector.
  • Repatriation of Profits: PT PMA allows for the repatriation of capital and profits.
  • Access to Local Market: Gain direct access to the Indonesian market and take advantage of the growing consumer base.
  • Legal Protection: Operating as a PT PMA provides legal certainty and protection under Indonesian law.
  • Government Support: The Indonesian government provides various incentives to foreign investors, including a 0.5%* income tax rate for the first three years.

       * Terms & conditions apply.

Steps to Register a Company in Bali

  • 1. Prepare your company organisation with a minimum of 2 shareholders, who are required to be directors and commissioners. At least one Director is mandatory on the board.
  • 2. According to the Indonesian Negative Investment List (Daftar Negatif Investasi), ensure your business sector is open to foreign investment.
  • 3. Prepare the required documents such as:
  • Copies of passports for all foreign shareholders and directors.
  • Approval from the Ministry of Law and Human Rights: Obtain legal entity status for your company.
  • Obtain a Tax Identification Number (NPWP): Register your company for taxation purposes.
  • 4. Incorporate Your PT PMA
  • Deed of Establishment: Drafted by an Indonesian notary, this deed includes the company’s Articles of Association.
  • Approval from the Ministry of Law and Human Rights: Obtain legal entity status for your company.
  • Obtain a Tax Identification Number (NPWP): Register your company for taxation purposes.
  • 5. Register through the OSS system to obtain the necessary business licenses, such as the Business Identification Number (NIB).
  • 6. Ensure your company meets the minimum capital requirement, typically IDR 10 billion for a PT PMA.
  • 7. Depending on your business sector, you may need additional permits, such as tourism licenses, environmental permits, or import-export licenses.

Registering a company in Bali as a PT PMA can be a rewarding venture, offering numerous opportunities in one of the most vibrant economies in Southeast Asia. For expert assistance and a seamless registration process, consider partnering with Usaha Expat, who can guide you through every stage of establishing your PT PMA in Bali.

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