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No Office Space – No Business in Bali. If you don’t have a rented office space, you can’t open a company in Bali.
Your business must have a registered address for receiving official correspondence and for inspection purposes.
At the beginning, the only party likely to inspect your office will be the bank where you plan to open your corporate account. A bank representative will visit your office location, take photographs, and confirm that it exists as an actual business office.
Later on, all important business documents and notifications will be sent to this address, including::
NPWP (Company Tax ID);
NPWP (Director’s Tax ID);
Articles of Association, business registration documents, etc.
Due to illegal practices used by some expats, where companies are registered with 5–10 employees just to obtain a KITAS (residency permit in Indonesia), authorities now impose stricter requirements on office spaces. If you, as a business owner, don’t know where your office is located, you could be suspected of fraud. So, let’s handle this properly from the start.
Learn more about the legal ways to register a business HERE - https://bali-legal.com/en/business-bali-bez-oshibok-en.
More about the consequences of illegal company registration HERE - https://bali-legal.com/en/deportaciya-na-bali-en.
You Have Three Main Office Solutions:
Use Your Residence
When you arrive in Bali, you can stay in a villa, guesthouse, or apartment. Any of these can serve as your office if the property has a commercial use license (NIB).
Check with the property owner if they have the appropriate document. If they do, you can sign a simple lease agreement in both Indonesian and English, which does not require notarization.
Example:
If you’re already living at the property you plan to use as your business address, the rental cost might be the same as your monthly rent.
To reduce your tax burden, I recommend signing a separate lease agreement for a lower rent, around 500,000 – 1,000,000 IDR per month. This way, the office rent tax (which is 10% of the rent) will only be around 50,000 – 100,000 IDR per month (3–7 USD). Most businesses can afford this.
More about the Indonesian tax system HERE - https://bali-legal.com/en/nalogi-v-indonezii-en.
We can help you prepare all the necessary documents in both Indonesian and English. Simply reach out to us - HERE.
Physical Office
For businesses that require a physical office space, the process starts with verifying several documents:
NIB (Business Identification Number)
Property ownership documents that show the owner has the right to lease the space
Zoning compliance (detailed information on zoning in Bali can be found HERE: https://bali-legal.com/en/land-on-bali-en.
I won’t go into detail about location or office size (as every business has different needs), but you should at least ensure the office is within a suitable zone.
If you later decide to move, it’s best to find a new office in the same area.
For example, if your business is registered in the Gianyar area (like ours), moving to another district might require updating your company's registration documents, which can be time-consuming and costly.
Office rental prices in Bali are quite reasonable. A coworking space for 1–2 people costs around 1,500,000 – 2,000,000 IDR per month (about 130 USD).
A small office for 1–2 people on the outskirts of town costs 3,000,000 – 4,000,000 IDR per month (up to 300 USD).
A larger office for 5–10 people starts from 8,000,000 IDR per month (around 500 USD).
Tip:
For registering a business, a small office for one person will do, but keep in mind that leases are usually for one year, and you’ll need to pay the full amount upfront (around 36,000,000 IDR or 2,400 USD + 10% tax = 2,620 USD).
Notary services are required for these agreements, which means your initial cost may be around 3,200 – 3,300 USD.
Virtual Office
This is currently the most popular option for registering a company. A virtual office provides a legal address for registration and document storage, without the need to rent a full physical office.
Indonesia has created spaces specifically for mass company registrations, allowing entrepreneurs to legally use a virtual office address.
However, be aware of potential issues:
Some addresses may not be legally allowed to lease to multiple businesses, which could result in fines for both the company and the business owner.
In some cases, the address may not even exist, or the physical office may be empty during inspections. This could trigger additional scrutiny from the authorities.
The address is legitimate and has a physical office. Sometimes you receive a formal lease agreement. Many institutions will request this document.
There’s someone present at the office, especially during inspections. If the office is empty, this could lead to more thorough checks on your business.
The cost for a legitimate virtual office is around 1,000,000 IDR per month.
Here’s an example of an office where we help clients rent a space.
This is what your lease agreement for the premises should look like, with the rental address clearly indicated (it should match to the letter what is written in the Charter).
The cost of such an office is currently 7,770,000 IDR per year. However, with our special offer for clients, this office is available for just 6,000,000 IDR per year, with taxes already included. This works out to 500,000 IDR per month (about 35 USD).
As our client, you can also use this office once a week for your work. There will always be a representative on-site, so your mail won’t get lost, and any inspections will find a secretary present.
If you need assistance with opening a company and registering at this reliable address, CONTACT US via TELEGRAM OR WHATSAPP for quick communication.
Together, we’ll make your life on the island comfortable!
