Set Up a Foreign Company in Bali

How to Set Up a Foreign Company in Bali: PT vs. PMA Explained

Setting up a company in Bali can be an exciting step for foreign entrepreneurs looking to tap into Indonesia’s growing market. However, understanding the legal framework is crucial to ensure compliance with local regulations. Here’s a comprehensive guide on setting up a foreign-owned company (PT PMA) in Bali and how it differs from a local PT company.

Understanding Business Entities in Indonesia

When registering a company in Indonesia, you’ll generally encounter two main business structures:

  1. Local PT (Perseroan Terbatas) – A company structure available only to Indonesian citizens.

  2. PT PMA (Penanaman Modal Asing) – A foreign-owned company that allows overseas investors to conduct business in Indonesia legally.

For foreign entrepreneurs, setting up a PT PMA is the best option as it allows full legal ownership under certain business classifications.

Key Differences Between Local PT and PT PMA

FeatureLocal PTPT PMA
Ownership100% IndonesianForeigners can own up to 100% (depending on industry regulations)
Business ScopeDomestic tradeDomestic & international trade
Capital RequirementLowerMinimum IDR 10 billion (~USD 700,000)
Licensing ProcessSimplerRequires additional investment approvals
Market AccessLimited to the local marketCan engage in export, import, and trade globally

Steps to Establish a PT PMA in Bali

1. Choose Your Business Classification

Indonesia has a Negative Investment List (DNI) that regulates foreign ownership in certain industries. Some sectors allow full foreign ownership, while others require a local partner.

2. Determine the Required Capital

To set up a PT PMA, you need a minimum investment of IDR 10 billion (around USD 700,000). However, only IDR 2.5 billion (USD 175,000) needs to be deposited as paid-up capital.

3. Company Name Registration

The company name must consist of at least three words and be approved by Indonesia’s Ministry of Law and Human Rights.

4. Obtain the Deed of Establishment & Legal Documents

This includes:

  • Deed of Establishment (prepared by a local notary)

  • Approval from the Ministry of Law and Human Rights

  • NPWP (Taxpayer Identification Number)

  • Business Identification Number (NIB)

5. Acquire Business Licenses

Depending on your industry, you may need additional licenses such as:

  • Operational and Commercial License

  • Sectoral Business Permits

  • Domicile Letter from local authorities

6. Open a Corporate Bank Account

Once your company is legally registered, you can open a business bank account to facilitate transactions.

7. Hire Employees and Process Work Permits

Foreign directors or employees need a KITAS (Temporary Stay Permit) and an IMTA (Work Permit) to work legally in Indonesia.

Why Set Up a PT PMA in Bali?

Bali is not just a top tourist destination—it’s also an emerging hub for business and investment. A PT PMA allows foreign investors to tap into Indonesia’s booming economy, whether in hospitality, tourism, e-commerce, or real estate.

Need Assistance with Company Registration?

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