Starting a Company in Bali: What You Need to Know
You can set up a company remotely without coming to the island. However, certain steps, like opening a bank account, signing powers of attorney, obtaining a tax number, etc., may require your presence (or that of your representative).
Your company will act as a sponsor for your 2-year residence permit (KITAS) in Indonesia.
When establishing a company, be prepared for the following:
Minimum of 2 founders (both can be foreigners);
Minimum shareholding of at least 10% per founder;
Submit regular reports to regulatory and tax authorities - https://bali-legal.com/en/about-accounting-en;
Obtain a tax identification number for the director (one of the investors);
Find a registered address for your company.
We are here to guide you through each of these steps.
How to Start a Company with Us?
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STEP 1 - Submitting Your Application:
At this stage, our manager will gather information about:
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Types of Business Activities: Ideally, choose no more than three related activities. For instance, combining investments, construction, bike rentals, and restaurant services might raise questions from regulatory authorities and could require higher share capital;
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Company Name: Must consist of at least three words, each longer than three letters. For example, our company is PT (equivalent to JSC) BALI FOREIGN LEGAL;
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Founders' Passports: Passports must be valid for at least 30 months;
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Company Email Address.
Our manager will confirm the company name and activities and then start preparing the preliminary notarial act to establish your company.
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STEP 2 - Choosing a Registration Location:
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Read about office types and registration addresses in this article - https://bali-legal.com/en/office-bali-en. Some businesses, like hotels, restaurants, cafes, spas, and stores, are best registered at a physical location. However, for most companies, registering at a dedicated office licensed for subleasing is sufficient.
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Most registrations use a virtual office with a secretary to handle incoming correspondence if needed.
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The cost of such an office starts at 400 USD per year.
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STEP 3 - Assigning Roles in the Company:
When starting a business in Indonesia, founders must appoint at least two mandatory positions:
Director: An active role that allows for management and decision-making
Commissioner: A passive role responsible for overseeing the company's activities
At this stage, we will assist you in assigning co-founders to these roles based on the number of founders and your business objectives.
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STEP 4 - Signing the Draft Notarial Deed:
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After finalizing all questions and verifying the documents, a final deed (resolution) in English is prepared for your review and signature.
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Immediately after this, the documents are sent to the notary for final registration.
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IMPORTANT!!! In the resolution, you confirm the presence of a share capital calculated at 700,000 USD per shareholder. ACTUALLY CONTRIBUTING FUNDS IS NOT REQUIRED.
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The entire process of opening a company takes approximately 2 to 3 calendar weeks, depending on the speed of document approval, and includes the following list of output documents:
- DEED OF INCORPORATION
- AKTA PENDIRIAN PERSEROAN TERBATAS (DEED OF INCORPORATION OF A LIMITED LIABILITY COMPANY)
- KONFIRMASI KESESUAIAN KEGIATAN PEMANFAATAN RUANG (for each license)
- PERNYATAAN MANDIRI (INDEPENDENT STATEMENT for each license)
- PERIZINAN BERUSAHA BERBASIS RISIKO SERTIFIKAT STANDAR (RISK BASED BUSINESS LICENSING STANDARD CERTIFICATE for each license)
- NPWP NUMBER (BISINESS TAX NUMBER)
- KEPUTUSAN MENTERI HUKUM DAN HAK ASASI MANUSIA REPUBLIK INDONESIA (DECISION OF THE MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA)
- NOMOR INDUK BERUSAHA (BUSINESS IDENTIFICATION NUMBER)
- PENGESAHAN PENDIRIAN (VALIDATION OF ESTABLISHMENT)
- SURAT PERNYATAAN KESANGGUPAN PENGELOLAAN DAN PEMANTAUAN LINGKUNGAN HIDUP (STATEMENT OF ENVIRONMENTAL MANAGEMENT AND MONITORING CAPABILITY)
The cost of the complete package of documents, along with English-speaking support, is 21,000,000 IDR (1,400 USD).
More Information About Doing Business in Bali?
If you haven't yet decided why you want to start a business in Bali, our website has several helpful articles:
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The Most Popular Business Directions in Bali - https://bali-legal.com/en/osobennosti-biznesa-polnyij-gajd-2024-en
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Which Businesses Are the Most Profitable? - https://bali-legal.com/en/3-samyix-populyarnyix-vida-biznesa-vesti-udalenno-en
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Comparing Indonesia with Other Southeast Asian Countries in Terms of Corruption, Taxes, and Ease of Doing Business - https://bali-legal.com/en/luchshee-reshenie-dlya-otkryitiya-biznesa-en