How to Set Up a PT PMA Company in Bali: Registration, Requirements, and Common Pitfalls

Starting a business in Bali continues to attract foreign investors thanks to its booming tourism industry and pro-business environment. To legally operate in Indonesia, a foreign entrepreneur must establish a company in the form of a PT PMA (Penanaman Modal Asing) — a legal entity with foreign-owned capital. Since 2021, all stages of registration are processed through the government’s online platform OSS (Online Single Submission).

In this article, we’ll explain how to register a PT PMA in Bali in 2025, outline the necessary steps, and highlight the most common mistakes made by first-time investors.

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What is a PT PMA and Why Do Foreign Investors Need It?

A PT PMA is a type of legal entity officially recognized under Indonesian law, allowing foreign individuals and corporations to invest and conduct commercial activities across Indonesia, including Bali.

This type of company is authorized to:

• enter into contracts with individuals and other legal entities;
• acquire property and real estate;
• hire employees (both local and foreign);
• legally earn profits and distribute dividends.

💡 Important: Although PT PMA is the most common legal vehicle for foreign-owned businesses in Indonesia, not all sectors are open to foreign investment. The government restricts access to certain industries in line with the Positive Investment List (Perpres No. 10 Tahun 2021). Always verify whether your intended business activity is eligible for foreign ownership before proceeding.

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Step-by-Step Guide to Registering a PT PMA in Bali

Since 2021, all documentation and permits are processed through the digital platform OSS, developed by the Ministry of Investment and BKPM (Indonesia Investment Coordinating Board).

Step 1: Prepare the Required Documents

Before registering a company, you’ll need to collect the following data and documents:

• Passport details of all foreign investors;
• A unique company name — preferably translated into Indonesian;
• A basic business plan outlining investment amount and capital structure;
• An official business address in Indonesia (commercial property only);
• The company’s deed of establishment (Akta Pendirian), notarized and registered with the Ministry of Law and Human Rights (Kemenkumham).

💬 Note: The company name must comply with Indonesian naming regulations and not infringe on existing trademarks.

Step 2: Appointing Company Directors and Commissioners

A PT PMA must have the following organizational structure:

• At least one foreign shareholder (individual or corporate);
• At least one director — may be a foreigner or Indonesian citizen;
• At least one commissioner — foreign nationals are also permitted.

📌 Tip: When selecting directors and commissioners, consider their business reputation and experience, as they bear legal responsibility for the company’s actions.

Step 3: Register via OSS and Obtain the NIB

Once the company deed and structure are finalized, proceed to digital registration through the OSS portal. During this process, you’ll receive:

• NIB (Nomor Induk Berusaha) — the company’s unique Business Identification Number;
• A Tax Identification Number (NPWP) — issued automatically upon registration;
• Integration with other government institutions (Ministry of Manpower, Immigration, etc.).

With the NIB issued, your PT PMA is officially registered and can:

• Open corporate bank accounts;
• Pay taxes and submit financial reports;
• Apply for permits related to construction, import/export, trade, and services.

💡 Tip: Business activities are selected using the KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) classification — be sure to choose the correct code or risk having your license application denied.

Step 4: Securing Industry-Specific Licenses

Depending on the business sector, you may be required to obtain one or more specialized licenses. For example:

• Construction — IUJK;
• Tourism and hospitality — TDUP;
• Education — authorization from the Ministry of Education;
• Retail — Surat Izin Usaha Perdagangan (SIUP).

⚠️ Important: While some licenses aren’t formally issued due to “positive fictitious approval” (where silence implies approval), businesses are still required to classify their activities correctly within the OSS system.

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Financial Requirements: Investment and Paid-Up Capital

According to current BKPM regulations, each PT PMA must meet the following minimum requirements:

• Total investment plan: IDR 10 billion (approx. $650,000 or 60 million rubles) per business project;
• Minimum paid-up capital: IDR 2.5 billion (approx. $160,000 or 15 million rubles);
• Recommended minimum initial deposit: IDR 1 billion (around $65,000) — to demonstrate business intent.

💬 Note: Financial requirements may vary depending on the industry — some sectors demand higher investment thresholds.

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Common PT PMA Registration Mistakes and How to Avoid Them

Mistake 1: Registering with a Residential Address

A PT PMA cannot be registered at a residential or private property. The business address must be in commercial premises such as an office building, retail space, or coworking center approved for business use.

⚠️ Risk: Using an invalid address can result in denial of your NIB and issues with the tax office.

Mistake 2: Declaring Capital Below Required Minimum

Stating capital amounts below the BKPM threshold will lead to automatic license rejection or withdrawal.

Mistake 3: Applying Without Legal or Professional Assistance

Although the OSS platform may appear simple, it requires:

• Proficiency in the Indonesian language and legal terminology;
• Accurate classification under KBLI codes and service types;
• Detailed understanding of Indonesian corporate law nuances.

⚠️ Recommendation: Engage licensed consultants who specialize in foreign company registration. This saves time and reduces risk of rejection.

Mistake 4: Ignoring Tax Obligations

Once your NIB is issued, your company must:

• Obtain a tax registration number (NPWP);
• Fulfill tax obligations (PPh 21 — on employee salaries; PPh 25 — monthly prepayments on profit);
• Submit monthly and yearly tax filings — even with zero earnings.

💡 Real-life Case: A German entrepreneur registered a café but failed to file a zero tax return for three months. The result — a fine and temporary suspension of his tax account.

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Conclusion: PT PMA — A Gateway to Legal Business in Indonesia

Setting up a PT PMA company in Bali is not just a formality — it’s a critical step for any foreigner seeking transparent and legally protected business operations in Indonesia. The OSS system streamlines the entire process online, offering seamless access to all essential government agencies.

However, there are many nuanced steps involved: incorrect KBLI classification, improperly prepared documents, or insufficient capital can lead to delays and legal issues.

✅ Bottom Line: If you’re planning to invest in Bali’s tourism, trade, construction, or other sectors legally — start by properly registering a PT PMA with the aid of experienced legal professionals.

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Frequently Asked Questions

How long does it take to register a PT PMA in Bali?

On average, it takes 5–10 business days from the submission of documents to obtain the NIB. Additional licenses may take 1–3 weeks depending on the sector.

Can I open a PT PMA without being physically present in Indonesia?

Yes, with a power of attorney and a local representative, remote registration is possible.

Can I register a PT PMA with less than $100,000 in investment?

No, the current BKPM regulations require a minimum investment of IDR 10 billion.

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Meta Description (for SEO):

How can a foreigner start a business in Bali in 2025? Full PT PMA registration guide: licenses, investments, taxes, and common mistakes.

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