How a Tourist Can Become an Entrepreneur in Bali: Obtaining the Necessary Permits
How a Tourist Can Become an Entrepreneur in Bali: A Step-by-Step Guide to Starting a Business and Changing Your Visa
Dreaming of staying in Bali not just as a traveler but as the owner of your own business? It’s achievable — but only if you comply with all Indonesian legal requirements. A tourist visa does not entitle you to conduct any business activities, so you’ll need to go through the process of registering a company, obtaining licenses, and changing your visa status.
This article provides a detailed, step-by-step guide for foreigners on how to start a business in Bali — from selecting a legal structure to obtaining a KITAS (Stay Permit) for investors or workers.
What You Need to Start a Business in Bali: Overview Checklist
- Decide on a business structure — PT PMA (foreign-owned company)
- Register the company name and articles of association with the Ministry of Law and Human Rights (AHU)
- Obtain your NIB and relevant business licenses via the OSS platform
- Open a corporate bank account
- Apply for a working or investor KITAS
- Hire at least one local employee and get registered for tax
1. What Type of Company Can a Foreigner Open in Bali? Only PT PMA
For foreign nationals, including tourists, the only legal form of company ownership in Indonesia is a PT PMA (Perseroan Terbatas Penanaman Modal Asing), which stands for Foreign Investment Company.
Key Features of a PT PMA:
- Allows 100% foreign ownership — in most sectors not restricted by the Positive Investment List;
- Minimum declared capital — IDR 10 billion (approx. USD 650,000). Full deposit is not mandatory upfront, especially if utilizing phased funding;
- Requires at least two shareholders — either individuals or legal entities;
- A registered physical office address is required;
- Enables you to employ staff and generate revenue within Indonesia.
What Industries Are Open to Foreigners?
- Tourism: travel agencies, transfers, tour services;
- Hospitality: hotels, villas, guesthouses;
- Food and Beverage: restaurants, cafés, bars;
- IT and digital technologies;
- Wellness and health: yoga, meditation, spa services;
- Retail and e-commerce businesses.
Important: Always check in advance whether your intended business activity is permitted for foreign investment. Some sectors are restricted or require additional licensing.
2. How to Register a PT PMA in Indonesia
Business registration in Indonesia must be completed via the OSS (Online Single Submission) platform. However, you must complete several administrative steps before using OSS.
PT PMA Registration Process:
- Reserve your company name through AHU (Ministry of Law and Human Rights);
- Prepare and notarize the articles of association;
- Register the company in the AHU system and obtain a certificate of establishment;
- Obtain your NIB (Nomor Induk Berusaha) — a unique business registration number;
- Apply for applicable business licenses:
- SIUP — general trading/commercial license;
- TDUP — for travel agencies;
- TDK — for hotels/accommodation providers, etc.
- Register for a tax ID (NPWP — Nomor Pokok Wajib Pajak);
- Open a corporate bank account in an Indonesian bank;
- Obtain local permits from community authorities (e.g., village and banjar), depending on business location.
Keep in mind: all licenses are linked to your NIB and synchronized through the OSS system. Any inconsistencies can lead to application rejections — including your visa applications.
Tip: It’s highly advisable to work with experienced legal consultants during this stage to ensure timely and error-free processing.
3. How to Get a KITAS to Run a Business in Bali
By law, tourists cannot conduct business in Indonesia. To legally manage a company, you must obtain a long-term visa — the best option being an Investor KITAS.
Main Types of KITAS for Foreign Entrepreneurs:
- Investor KITAS — for PT PMA shareholders (Type 313 valid for 1 year, Type 314 valid for 2 years);
- Working KITAS — for foreign employees hired under contract by a PT PMA;
- Dependent KITAS — for family members of the primary visa holder.
Investor KITAS: Step-by-Step Process
- Set up your PT PMA and obtain the NIB;
- Confirm shareholder status (recommended minimum investment: IDR 10 billion, declared in the articles);
- Submit your application via a licensed agency or directly using the e-Visa portal;
- Submit documents to Immigration (or an Indonesian consulate if applying from abroad);
- Receive the e-visa, arrive in Bali, and complete the process at the immigration office;
- Processing time is typically 4–6 weeks.
The KITAS allows you to reside, manage your business, and freely enter and exit Indonesia during its validity period.
4. Additional Business Compliance Requirements in Bali
Once your company is registered and your visa is granted, there are several ongoing compliance obligations to be aware of.
- Tax and Accounting: You are required to submit both monthly and annual tax reports (including PPh and VAT), even if you haven’t generated income yet;
- Mandatory audit: Required if annual turnover exceeds IDR 50 billion;
- Local Employment: Every PT PMA must employ at least one Indonesian citizen (exceptions apply during construction phases);
- Office and Address: A verified physical business address is required (PO Boxes are not accepted);
- Inspections and Visits: Local authorities may conduct inspections to verify business operations.
Important: Non-compliance with visa or tax regulations can result in fines, license revocation, or even deportation.
Conclusion
Transitioning from tourist to legal entrepreneur in Bali involves complying with rigorous steps: registering a PT PMA, securing licenses, and fully adhering to Indonesia’s tax and immigration rules. Though complex at first glance, this path is successfully taken by many foreigners — especially with the guidance of professional consultants.
Remember this: you cannot run a business in Bali on a tourist visa. You must obtain a KITAS to legally operate and grow your enterprise in Indonesia.
Ready to start your business journey in Bali? Be sure to consult with a legal advisor or licensed agency specializing in PT PMA registration and visa services in Indonesia — it will save you time, money, and stress.
