Top 5 Tips for Starting a Business in Bali

Bali's vibrant economy and strategic location make it an attractive destination for entrepreneurs and investors. However, navigating the business landscape in Indonesia requires careful planning and local expertise. Here are our top five tips to help you successfully launch your business venture in Bali:

1. Understand the Legal Structure Options

Before starting a business in Bali, it's crucial to understand the available legal structures:

• PT PMA (Foreign-Owned Company): For foreign investors wanting to own 100% of their business
• PT Local (Indonesian Limited Liability Company): Requires local partners and minimum Indonesian ownership
• Representative Office: Allows foreign companies to establish a presence without conducting direct business

Each structure has its own requirements, advantages, and limitations. Choosing the right one depends on your business activities, investment amount, and long-term goals.

2. Secure Proper Licensing and Permits

Every business in Indonesia requires specific licenses, including:

• Business Identification Number (NIB)
• Business License (SIUP)
• Company Registration Certificate (TDP)
• Industry-specific permits

Foreign-owned businesses face additional requirements, such as a minimum investment commitment and specific documentation. Working with local experts ensures you obtain all necessary permissions while avoiding costly delays.

3. Navigate Visa and Work Permit Requirements

If you plan to run your business in Bali personally, you'll need the appropriate visa:

• Investor KITAS: For shareholders/directors of PT PMAs
• Working KITAS: For foreign employees

These permits require various supporting documents and navigating the application process can be complex. Plan ahead as processing can take several weeks.

4. Understand Local Tax Obligations

Indonesia's tax system includes:

• Corporate Income Tax (25%)
• Value Added Tax (11%)
• Withholding taxes
• Individual income tax

Foreign businesses must comply with additional reporting requirements, such as the Investment Activity Report (LKPM). Establishing proper accounting systems from the start helps avoid compliance issues.

5. Build a Strong Local Network

Success in Bali often depends on building strong local relationships. Connect with:

• Local business associations
• Industry networks
• Government contacts
• Professional service providers

These connections not only provide valuable insights but can also help you navigate business challenges unique to the Indonesian market.

Getting Started with Saviara

At Saviara, we specialize in helping entrepreneurs and investors establish and grow their businesses in Bali. Our comprehensive services cover legal requirements, accounting needs, visa processing, and ongoing business support.

Contact us today to schedule a consultation and let our expert team guide you through your business journey in Bali.