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: At least one founder must hold 10%.
Timely reporting: Submit regular reports to regulatory and tax authorities (more on accounting - https://bali-legal.com/en/about-accounting-en).
Tax ID: Obtain a tax identification number for the director (one of the investors).
Local address: 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?
STEP 1 - Submitting Your Application
At this stage, our manager will gather information about:
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.
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.
Founders’ Passports: Passports must be valid for at least 30 months.
Company Email Address.
Our manager will confirm the company name and activities and then start preparing the preliminary notarial act to establish your company.
STEP 2 - Choosing a Registration Location
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.
Most registrations use a virtual office with a secretary to handle incoming correspondence if needed.
The cost of such an office starts at 400 USD per year.
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.
Start a business in Indonesia at the best price
The lowest price on the market for 2 KITAS + company. Leave your request, and our manager will contact you shortly!
STEP 4 - Signing the Draft Notarial Deed
After finalizing all questions and verifying the documents, a final deed (resolution) in English is prepared for your review and signature.
Immediately after this, the documents are sent to the notary for final registration.
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.
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 18,000,000 IDR (1,200 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:
The Most Popular Business Directions in Bali - Read more here - https://bali-legal.com/en/osobennosti-biznesa-polnyij-gajd-2024-en.
Which Businesses Are the Most Profitable? - https://bali-legal.com/en/3-samyix-populyarnyix-vida-biznesa-vesti-udalenno-en.
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.
Have any questions?
Leave a request for a free consultation and our manager will contact you as soon as possible