Bali is evolving from a paradise island into one of Southeast Asia’s most dynamic entrepreneurial zones.
For expats and investors, it’s not just a place to live — it’s a destination to build, grow, and profit.
Whether you’re opening a café, running a villa rental agency, or launching a wellness retreat, success starts with understanding the legal structure.
This guide explains how foreigners can open a business on Bali in 2025 legally, profitably, and safely — through Indonesia’s PT PMA framework.
| Category | Key Info |
|---|---|
| Legal Entity | PT PMA (foreign-owned limited company) |
| Registration Time | 3–6 weeks |
| Minimum Investment | IDR 10 billion (~USD 650,000)* |
| Ownership | 100% foreign ownership allowed in most sectors |
| Work Visa | Investor KITAS (1–2 years, renewable) |
| Corporate Tax | 22% |
| Main Authority | BKPM (Investment Coordinating Board) |
The minimum investment is declared capital, not an upfront deposit.
Why Open a Business in Bali
Bali today is more than a tourist destination — it’s a thriving micro-economy that connects global capital with local creativity. The island has become a launchpad for entrepreneurs who want to merge business with lifestyle, backed by a government that actively supports sustainable foreign investment.
Below are the key reasons why 2025 is the right time to start your business on Bali:
Stable Economy with Growing Tourism
Indonesia’s economy remains one of the strongest in Asia, with steady 5%+ annual GDP growth and a tourism sector that now contributes over 10% of national GDP.
Bali alone welcomed more than 5.2 million foreign visitors in 2024, and new infrastructure projects — from airport expansion to digital hubs — are fueling the next growth cycle.
Every additional flight into Bali means more demand for accommodation, dining, wellness, logistics, and real estate — and that means opportunity.
Modern Legal Framework for Foreign Investors
Gone are the days of complex bureaucracy. Indonesia’s Omnibus Law and OSS (Online Single Submission) system have streamlined company registration, making it faster, digital, and transparent.
Foreigners can now legally own 100% of a company through PT PMA (foreign-owned entity) in most business categories — from real estate and consulting to restaurants and e-commerce.
This modern framework protects your investment while aligning with global standards of corporate governance.
Favorable ROI in Property, F&B, and Wellness
Bali’s key industries — property, food & beverage, and wellness — remain the island’s economic backbone, offering some of the region’s most attractive returns:
The sweet spot lies in hybrid models — boutique villas with wellness concepts, co-living with café spaces, or “workation” resorts built for digital nomads.
Access to Both Local and International Clients
Bali is a unique bridge between markets:
You can serve international tourists, digital nomads, and local residents — all within one ecosystem.
With a growing community of long-term expats, digital entrepreneurs, and high-spending travelers, Bali offers constant demand for new services, from real estate to hospitality to lifestyle brands.
The island’s global diversity gives every business a natural international reach — even small operations can scale through online channels and partnerships.
Transparent, Fully Digital Company Registration
Business setup in Indonesia is now fully online via OSS 2.0, integrated with tax, immigration, and licensing systems.
What once took months now takes 3–6 weeks — from company registration to obtaining your Investor KITAS and opening a bank account.
You can track your registration, pay fees, and access permits digitally through verified agents or the BKPM portal, ensuring accountability at every step.
Bali has quietly become one of the easiest places in Asia to open a business as a foreigner — efficient, predictable, and transparent.
The Bottom Line
Bali’s business landscape rewards vision, creativity, and compliance — not shortcuts.
Those who treat it as a real investment destination — not just a tropical experiment — find stability, strong ROI, and a lifestyle that makes every workday feel like a privilege.
1. Choose the Legal Entity
Foreigners must operate through a PT PMA (Perseroan Terbatas Penanaman Modal Asing) — the official foreign investment company structure.
Advantages:
Avoid “nominee” arrangements under locals — they’re risky and not legally enforceable.
2. Register Your Company
Registration happens online via OSS (Online Single Submission) under the BKPM system.
Required documents:
Professional legal consultants can complete this within 3–6 weeks.
3. Obtain Licenses and Permits
| Sector | Required License | Description |
|---|---|---|
| Hospitality | TDUP | Tourism & accommodation permit |
| F&B / Restaurants | NIB + Health & Hygiene Permit | Food business license |
| Construction / Real Estate | PBG + SLF | Building & occupancy certificate |
| Retail / Import | API | Import/export license |
Your KBLI defines which licenses apply — always verify this with your legal partner before operations.
4. Open a Corporate Bank Account
Once registered, open a business account under your PT PMA.
Required:
Most banks (BCA, Mandiri, DBS) offer multi-currency options (IDR, USD, SGD).
5. Apply for an Investor KITAS
To manage your company legally, apply for an Investor KITAS — a residency visa for shareholders and directors.
| Type | Duration | Benefits |
|---|---|---|
| 1-Year Investor KITAS | 12 months | Full work rights, renewable |
| 2-Year Investor KITAS | 24 months | Eligible for KITAP (5-year stay) after 3 years |
No separate work permit (IMTA) is required under this visa type.
6. Tax & Accounting Setup
| Tax Type | Rate | Notes |
|---|---|---|
| Corporate Tax (CIT) | 22% | On net profit |
| VAT (PPN) | 11% | Mandatory for revenue > IDR 4.8B/year |
| Dividend Tax | 10–20% | Depending on DTA |
| Withholding (PPh 21) | 5–35% | For employee salaries |
PT PMAs can claim expense deductions for property leases, staff, and marketing — helping optimize ROI.
| Rank | Industry | Trend |
|---|---|---|
| 1 | F&B & Hospitality | Stable demand, lifestyle-driven |
| 2 | Property & Rentals | High ROI, linked to tourism |
| 3 | Digital & Tech | Growing startup ecosystem |
| 4 | Wellness & Retreats | Sustainability & holistic living |
| 5 | Retail & Design | Expanding expat and local markets |
Investors with a creative edge — blending hospitality, wellness, and digital services — see the fastest growth on the island.
For foreigners who want to not just visit Bali but truly build a life and business here, establishing a PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the cornerstone.
It’s the only legal structure that allows foreign investors to own and operate a business, obtain residency, and manage property under Indonesian law.
Unlike informal partnerships or “nominee” arrangements, PT PMA gives you direct ownership and full legal recognition from the Indonesian government — a secure, transparent foundation for long-term growth.
Setting up a PT PMA immediately connects you to Indonesia’s Investor Immigration Program, giving you access to long-term visas and residency benefits that align with your business operations.
Once your company is registered and approved by BKPM (Investment Coordinating Board), you qualify for the Investor KITAS — a renewable 1–2 year residence and work permit.
After three years of continuous business and tax compliance, you can apply for KITAP — a 5-year permanent residence permit that offers nearly the same rights as a local citizen in terms of living and working.
In other words: building a legitimate business here is also building your legal home in Indonesia.
| Benefit | Description |
|---|---|
| Full Control of Your Business Structure | You retain 100% management rights and profit control (subject to sector limits). The PT PMA structure eliminates dependency on local nominees, ensuring legal ownership and authority over your enterprise. |
| Access to Investor KITAS and Later KITAP | The Investor KITAS gives you the right to live and work in Indonesia without a separate work permit (IMTA). After three years, you can upgrade to KITAP — a renewable 5-year residence card. |
| Ability to Buy, Lease, or Manage Property Legally | A PT PMA can sign long-term leasehold agreements (Hak Sewa) and obtain building rights (HGB) for villas, offices, or commercial spaces — all fully compliant with Indonesian land law. |
| Sponsor Your Family Members | As a KITAS or KITAP holder, you can legally sponsor your spouse and children under the Family KITAS program, giving them access to local schooling, healthcare, and residence status. |
| Operate Transparently and Grow Sustainably | Through the official OSS system, your company is fully visible to Indonesian authorities — simplifying tax, accounting, and visa renewals. Transparency builds long-term credibility and protects your capital. |
PT PMA isn’t just a legal formality — it’s a growth platform that combines business expansion with personal stability and lifestyle freedom.
How It Works in Practice
Many investors use their PT PMA to manage villas, run hospitality businesses, or develop eco-resorts, combining profitability with the right to live and work freely in Indonesia.
Setting up a PT PMA does more than open a business — it establishes your legal identity as an investor in Indonesia.
You gain the freedom to operate, hire, expand, and reinvest — all under the protection of local and international investment laws.
This structure protects your assets, ensures your residency, and aligns your success with Indonesia’s economic vision — the true foundation for long-term prosperity on Bali.
The solution: work with licensed consultants (like DDA Real Estate) to ensure your business meets all legal and fiscal requirements.
Read also: Business Opportunities in Indonesia 2025, How to Start a Business in Bali, Canggu – Bali, Where Trendy Living and Real Estate Dreams Converge.
DDA Real Estate helps foreign investors establish and manage their business operations in Indonesia safely and efficiently:
We turn complex legal frameworks into simple, transparent processes — from paperwork to profitability.
